Changing your business telephony system can seem a daunting task. To help you make an informed decision about which system is right for your business, we’ve broken down the pros and cons of both hosted and on-premises business telephony systems.
What is a hosted telephony system?
A hosted telephony system is a cloud-based service. This means that the hardware, being the controller, or brains of the system is hosted in a data centre and not on your premises. The customer simply pays for services on a subscription or pay-as-you-go basis. Hosted systems also require minimal IT support as they are managed offsite by the provider.
What is an on-premises telephony system?
An on-premises telephony system is an in-house solution. This means that the hardware, software, and infrastructure are all housed on-premises at the individual business’s location. It requires more IT support than a hosted system as it must be maintained and upgraded onsite.
Let's explore the pros and cons of hosted and on-premises business telephony systems.
Pros of a hosted telephony system.
- You save on upfront costs as you don’t need to purchase any hardware or software.
- You can easily add and remove services as needed, giving you greater control over your budget.
- As your business grows, you can easily scale up and add more services without investing in more hardware or software.
- Quick installation and setup.
- Monthly costs are usually fixed so you know your expected costs.
- Regular updates ensure access to the latest features on the market.
- Reliable, secure service with no need for in-house IT support.
- Disaster recovery is built in.
Cons of a hosted telephony system.
- If there is an issue with the hosted provider’s infrastructure, it could affect the reliability of your service.
- As your data is stored offsite, there could be potential security risks.
- Limited customisation and control over the system.
- Can be more expensive than on-premises solutions for businesses with high call volume or usage needs.
- Dependency on outside providers for maintenance and support.
- An IT department will prefer a hosted option, but this has an ongoing cost.
Pros of an on-premises telephony system.
- The hardware and software are owned by you.
- You have full control over the features and functions of your system, giving you more flexibility to customise your services.
- All your data is stored onsite, so there are fewer security risks.
- Total control over system setup and customisations.
- Maintenance and support are managed in-house, reducing reliance on outside services.
- Can scale up or down as needed to accommodate business needs.
- Lower operational costs.
- Financial Advisors will prefer an on-premises option that gets paid off and becomes cost neutral.
Cons of an on-premises telephony system.
- You will need to maintain and upgrade your system on site, which requires more time, money, and resources.
- If your business grows, you may have to invest in more hardware or software, which can be costly.
- Can be difficult to manage and maintain for businesses with limited IT staff
- May not offer the newest features and technology available in hosted solutions
- If something goes wrong, you need to have a specific disaster recovery plan in place as well as have to source a telephony engineer to fix the issue if you don’t have staff in-house that are able to do it.
To determine which one is right for your business, it is important to weigh up the pros and cons of both hosted and on-premises business telephony systems carefully. Think about what features you need and how much you are willing to invest in terms of cost, time, and resources.
Suggested features and capabilities most businesses are likely to need.
When choosing your new phone system for the future it’s important to ensure that it has the features and capabilities that your business not only needs today but also might need in the future. With the upcoming ISDN Switch Off, now is the time to start making plans for a new phone system that can grow with your business and offer you on-going functionality without additional cost hikes.
Must-have features and capabilities include:
- Scalability – A system that is able to grow with your business; providing you with the flexibility to add, remove or change features and users as your requirements evolve. Your new system needs to be able to grow with your business, not just in terms of size but also in terms of hybrid working options and user experience.
- Cloud-based hosting – This allows for remote access and means that the cost of maintaining the system falls to someone else. It also ensures that there is no physical hardware required on-site.
- Remote and hybrid functionality – You also need to ensure that your chosen phone system offers all functions and features for remote workers as many of your employees may be working from home now. Additionally, quality and reliability are both essential to avoid call drops or delays.
- Unified Communications – This feature streamlines communication and collaboration across multiple platforms, including voice, video, instant messaging, file sharing and more. It also helps to ensure that customers can reach your business from whatever platform they choose.
- Mobility Solutions – Integrating mobile phones into your unified communications platform allows for an even greater level of collaboration and communication while working away from the office.
The phone system should provide all the standard features but also include:
Conferencing – The ability to host or join video and audio conferences from any location is a must-have for any business.
Automated Attendant – This feature allows callers to reach the right department or person quickly and easily, without requiring an operator.
As you can see both hosted and on-premises business telephony systems have their own advantages and disadvantages. However, their functions and feature capabilities are now more or less equal. Therefore, it’s important to weigh up the pros and cons carefully before deciding which system is best for your business needs.
Budget and on-going associated costs.
Depending on the size of your business and dedicated personnel and IT there may be preferred options due to budget constraints. For example, Financial Advisors are more likely to prefer an on-premises telephony option that gets paid off and becomes cost neutral, however an IT dept will prefer a hosted option which means less work for them, but this telephony option has an ongoing cost.
To make the best decision for your business, you’ll need to consider your budget, in-house IT support capabilities, call volume needs and other factors. Whichever option you choose, make sure to research thoroughly.
Sloane Curtis Solutions – Your hosted and on-premises business telephony experts.
Both hosted and on-premises business telephony systems have their own strengths and weaknesses. It’s important to carefully consider your business needs before deciding so that you can choose the best solution for you. Our telecoms professionals at Sloane Curtis Solutions can provide you with expert advice and guidance to help make your decision easier.
Experience is everything and we’ve got it in spades. Best tech, best people. We’ve got the solutions you need for today, tomorrow, and long into the future. Our telephony systems are all bespoke and designed to help businesses save money, as well as provide a robust and reliable service that is always available.
Contact us for more information and guidance – we are always happy to help.
