Wednesday, December 11, 2013

Advantages and Disadvantages to Cloud/Hosted VoIP Phone Systems, Premise Based Phone Systems

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Cloud/Hosted VoIP systems have become a preferred choice for many that are looking for a new business grade telecom solutions for their offices. And on the surface it's easy to see why. In most cases there is a small initial investment, one bill for equipment and service, the entire solution managed entirely by your hosted provider, latest technology, etc. However there are advantages and disadvantages to both cloud/hosted as well as the traditional premise based solutions that should be considered before investing in a new solution for your office. Office Telesystems has taken this into consideration with our system offerings.

Office Telesystems did an evaluation of several cloud/hosted VoIP providers with the intent to offer a cloud/hosted VoIP solution. We evaluated this not only from our perspective but from the customer perspective as well. After all, the marketing today on phone systems says Cloud/Hosted VoIP will be the solution of choice by 2016 and moving forward. Here are some things we’ve heard from new customers in the past who removed cloud/hosted VoIP systems in favor of a premise based solution when we considered a cloud/hosted VoIP offering: “Our previous hosted solution provided overall poor quality service and support, the equipment was marginal in quality and additional features significantly increased monthly cost.” We’ve also heard “lack of flexibility unless you buy all the add ons”, “hidden costs”, even excessive downtime and lost business due to substandard support. With a cloud/hosted solution from Office Telesystems, we understand how to not only design your cloud/hosted VoIP solution to avoid these pitfalls, but provide you the highest level of support to boot. This is one of many reasons why we have chosen the NetFortrisFonality line of cloud or hosted VoIP  phone system as our choice of cloud/hosted VoIP offering. You must be careful when choosing the right cloud/hosted VoIP solution for your office. Below are some advantages and disadvantages to cloud/hosted and premise based solutions. Hopefully this can help you choose the right cloud/hosted solution or premise based solution for your offices:

Advantages and Disadvantages to Premise Based and Hosted Solutions

For Premise Based (server on site) Solutions
Favorable total cost of ownership for just a few sites
Security of Network  
Broader Feature Set
Higher quality desk sets in most cases
Higher level of equipment support/dealer support
Life span‐once lease is completed, retain benefits of equipment after lease with no equipment payments (the average phone system lifespan is 7-8 years)
CapEx or OpEx financial options

Upfront equipment cost if purchased (Leasing can offset this as OpEx)
Integration to separate services provider, 2 or more bills
Cost of professional services usually more
Cost of upgrades (wrap into your lease to offset this)
Equipment possibly outdated or no future upgrades available (Make sure your equipment is NEW or supported by manufacturer and provides software updates)

Cloud/Hosted VoIP Solutions Pros and Cons

Low Up Front Investment
Multi-Site Integration
Lower short term total cost of ownership for mix of large and/or small branch sites
Reduce long distance expenses for remote sites in other area codes
Easy, one payment plan for both equipment and service in most cases


Higher long term total cost of ownership in most cases
Basic feature set‐upgrades significantly increase monthly cost
Average to below average Service/Support after the sale if no SLA service response guarantees
Lack of performance guarantees
Minimal equipment and service for your money

Office Telesystems prides itself in providing a level of service you deserve and expect from your dealer, whether you choose an on premise or cloud/hosted solution! Contact us today. 972 484 4900.