Choosing the Right Phone
Solution for Your Business:

On-Premises vs. Cloud-Based

The right VoIP solution plays an important role in the success
of your business. There are two options to consider for your
business phone solution: on-premises or cloud-based.
Understanding the key differences between the two options
can help you make the right decision for your business and to
get the most value from your investment.


Your phone system is at your location and you are responsible for installing and maintaining.


Your phone system resides in the cloud using your Internet connection with no on-premises hardware or software to install or maintain except for phones.


Up to 40% more costly than cloud-based, requiring cabling, hardware, closet space, electric & cooling

Pay in advance for planned growth

Multiple locations require multiple phone systems

Pay for all upgrades & maintenance

No hardware costs except the phones themselves

Pay ONLY for what you need & use

Multiple locations are supported by one phone system in the cloud

Most features & upgrades are included in cost


Time-intensive setup, requiring installing significant hardware

Quick & easy setup and installation


Harder to scale, requiring thorough planning
(and a crystal ball)

Takes weeks or months to add or delete phone lines

Scales to your needs as you grow, using exactly what you need, when you need it

Phone lines can be added or deleted in a matter of minutes


Requires an IT specialist to manage & make changes

Other than phones, no maintenance required

Upgrading Features

Time to market = Varies

Upgrades require manual updates from an IT specialist

Time to market = Immediate

All upgrades are made available automatically through the cloud


No mobile compatibility, making it more difficult to accommodate a mobile workforce

Anyone can connect from multiple devices with an Internet connection, making it easy to extend to a remote workforce

Disaster Recovery

Redundancy is possible, but costly

Recovery is typically slower, negatively impacting customer experience

Built-in failover in the event of Internet or power loss

Calls automatically rerouted to other data centers so customer experience is not affected

With a cloud-based solution, your business can take advantage of the following benefits:

Lower cost

Faster setup

Faster scalability

Faster time to market with new technology

No maintenance

More mobility

More reliable disaster recovery