An on-premise VoIP service is installed at your organization’s office, which means it’s typically managed and maintained by your company. However, some companies employ a third-party to handle maintenance for them. You’ll also have to cover hardware costs.
Cloud-Based VoIP
Using a cloud-based VoIP service means that the software and hardware are hosted, managed and maintained by the VoIP provider. Apart from the phones or endpoint devices themselves, everything is virtual.
Here are some points to consider to help you decide which method will work best for your business:
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Customization: On-premise VoIP services offer more customization options. They allow your employees to update the internal workings as and when required.
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Cost: Most cloud-based services charge a fixed monthly fee, making the cost of entry more affordable than it is for an on-premise service, which often involves a single, upfront fee as well as expenses related to hardware, maintenance and IT support.
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Scalability: Because a third party handles the operations and new users can be added as needed, a cloud-based system is more adaptable for a rapidly scaling business. An on-premise system is more challenging to scale, creating additional costs and putting the burden of updating the service on your staff.
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Security: Both types of services provide data security measures, but a cloud-based system typically has more built-in security features, along with security services provided by the vendor. An on-premise system relies on your IT staff to handle security.
Primary Benefits
1. Reduced Costs
Setting up a VoIP solution is much cheaper than managing an on-premise phone system. With a VoIP service, voice and video calls are generally free, and can be made using any web-connected device of your choice.
Although calls from a desktop or mobile phone to a landline are chargeable, charges are minimal compared to other options and don’t involve typical fees like long-distance and international calling. Most services charge you monthly, so you end up paying only for the features you need. You also get access to more features than a traditional phone service has, at no extra cost.
2. Greater Mobility
A recent report by McKinsey found that 35% of employees were offered remote work on a full-time basis. Working from home is on the rise, and businesses need tools that support the functioning of remote and hybrid workplaces.
Since VoIP works with any internet-connected device, your staff can remain productive and efficient no matter where they are, easily connecting with clients and colleagues worldwide.
3. Increased Scalability
It's not easy to predict how many phone lines you'll need, especially if you're a rapidly growing company. Having a scalable communication solution takes the headache out of hiring new employees, forming more teams and establishing new offices in different locations.
Most VoIP solutions don't involve fees to add or remove users. They also don’t require much hardware, especially because VoIP softphones can be enabled on most common devices. If an employee leaves the company, you can easily reassign or remove their line.
4. Usability
A VoIP service is easy to integrate into any workplace because the platform is so user-friendly. Employees don’t face steep learning curves and can access the software through devices they already use every day.
5. Better Security
Many VoIP services come with built-in tools like end-to-end encryption, endpoint security and two-factor authentication to keep communications secure. Some service providers even let you check your call logs in real time, so you can catch suspicious activity as it happens.
