While the benefits of a VoIP phone system for your business may be obvious (cost-efficiency, improved customer and employee experience), much consideration must go into employing the ideal system to suit your needs. One of the main decisions is whether to employ a premises-based solution or a cloud-hosted system.

When it comes to this decision, there is no right or wrong answer. Here are some of the ways these systems differ to help you make the best decision.

Installation & Maintenance
On-premise systems are installed at the business’s physical location and are often managed by staff. Purchasing and installing the equipment and software can get rather costly, which is why this option is often better suited for large businesses that have the necessary resources. But you do get what you pay for since complete responsibility means complete control. Businesses that choose an on-premise system can design their systems to perfectly suit their needs while avoiding any fee increases and lower total cost of ownership as the system grows.

A hosted VoIP system is maintained off-site (usually in the cloud) by a third-party provider. Hardware and software upgrades are handled by your VoIP provider, who work hard to ensure you get the most convenient suite of services possible. However, because support requests must be channeled to the provider’s support team rather than your own, responsiveness and agility are negatively affected. Small businesses may gravitate toward this cost-effective and convenient option, while others may not be willing to sacrifice speed.

Scalability
At some point, your business may grow and you will need to scale up your systems to support more users or a new business initiative. This is where hosted VoIP solutions shine. They are typically always ready to offer more resources and capacity as needed. For on-premise solutions, it may take more time and resources to upgrade and expand the system. When choosing between the two solutions, businesses must consider their expected business trajectory, factoring in what will work best for them now and into the future.

Security
Concerns about cloud security remain, but we need not worry so much. Reputable cloud providers are likely better equipped to handle cloud security than you are. Because their reputations depend on maintaining strict security measures, they are constantly monitoring for vulnerabilities and identifying and patching any risks found. In addition, cloud entry points are well-defined and protected thanks to multi-factor authentication, limited-time restricted access and other advanced protection tools.

All things considered, it comes down to choosing the system fit-for-purpose. Smaller businesses may opt for cloud-hosted VoIP solutions until they grow to a size in which they can afford an on-premise system and hire the personnel necessary to run the system effectively. However, large enterprises may require more advanced features and customization, so an on-premise solution may work out better.

Which type of VoIP phone system do you prefer? Share with us on Facebook, Google+, Twitter, LinkedIn, and Pinterest.

Visit Startechtel.com to shop our selection of new and refurbished VoIP phones, conference phones, phone system packages, and more! Call 800-564-8045 for more information.

Tags: Choosing the right system, Hosted VoIP system, On-premise VoIP, Pros and Cons