Cloud Phone Systems Vs. On-Premise Phone Systems – Which is Right for Your Business?

If you prefer the security of owning your assets and your IT team has the resources to maintain your system, an on-premise deployment might be proper for you. However, this can be expensive and can take time to implement changes.

A cloud-based phone system is less costly, easier to scale, and more flexible for remote users. This can help your business grow without having to worry about installation costs.


It’s essential to understand the overall cost of your unified communications platform. This includes not only hardware costs but ongoing maintenance and management. For example, if you opt for an on-premise solution, you must pay a one-time fee during installation and additional ongoing support, including upgrades.

This recurring cost adds up and can be challenging for smaller organizations to foot the bill. Plus, if your organization decides to expand or reduce the number of users, you must manually implement the changes, which can lead to downtime.

Cloud telephony solutions, or hosted VoIP, have less upfront capital costs and more predictable monthly hosting charges. They usually include a wide range of softphones and endpoints for your employees and can be more affordable in the long run than an on-premise system. Additionally, a lot of cloud service providers offer flexible leasing programs, which can make it even more affordable. Most hosted VoIP systems also have unlimited calling, faxing a new report, and messaging services.


With a cloud-based business phone system, buying and installing hardware for a large-scale phone system is unnecessary. The service provider hosts This solution in a data center and operates entirely over a desktop computer or mobile device (or a combination of both). If you already have the traditional infrastructure, confirm it’s compatible with modern systems before signing up with a new provider.

A cloud-based system is an excellent option for small businesses looking to cut capital investment and ongoing maintenance costs. Most cloud-based systems work on a subscription model and provide the flexibility for a business to scale as needed.

Plus, when you switch to a cloud-based system, your internal IT team can take the burden of hardware maintenance off their plates and focus on strategic projects. That’s a win for your IT department and your balance sheet. 


Cloud phone systems allow for flexibility for remote and distributed working. Because they use VoIP technology to connect calls, employees can plug in a headset at their desk or use the business number on their mobile device to make and receive work calls.

This allows companies to scale up or down efficiently without investing in new hardware. Additionally, all major software updates are handled by your service provider. This saves IT resources on costly maintenance and allows them to focus on revenue-generating projects.

This level of flexibility also ensures complete control over the system. Many reputable providers offer administrative portals where any designated team member can make changes without needing an IT resource. This makes a cloud phone system more efficient for businesses and provides peace of mind that your data is safe.


Cloud phone systems offer a much more affordable cost structure than on-premise alternatives. In addition to free local and toll-free calling, these solutions typically include more affordable options for international calls and service adjustments that account for seasonal or industry fluctuations.

Because a cloud-based system requires an internet connection, you don’t have to worry about installing and maintaining additional hardware on-site. Most providers will roll the costs of any equipment that may be required into your monthly recurring seat and user fees.

When determining the best cloud solution for your business, it’s essential to research potential suppliers carefully. Look for unbiased reviews, case studies, and testimonials to ensure you’re working with a partner that can provide the quality of support your company needs.

Asim Boss

Muhammad Asim is a Professional Blogger, Writer, SEO Expert. With over 5 years of experience, he handles clients globally & also educates others with different digital marketing tactics.

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