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Side-by-Side Comparison

When you are looking for a VoIP system to replace your legacy system the first thing to consider is where the engine of the phone system will reside. There are two primary options with a variety of hybrid options available. The first is on-premise. This would put the hardware in your server closet. The seconds is a cloud option where the server resides at a remote location. Both options have pros and cons so here is a side-by-side comparison of the options.

CLOUD

ON-PREMISE

Cost of VoIP Services
Pros:
  • Lower initial equipment cost and set-up cost
  • Maintenance costs included in monthly fees

Cons:
  • Ongoing monthly fees
  • Fees can be increased and cancellation fees can be charged
Pros:
  • No risk of fee increases
  • Server ownership reduces expenses over time
  • Total cost of ownership is lower in larger systems

Cons:
  • Higher initial setup costs
  • Unknown long-term maintenance and support costs
Reliability
Pros:
  • Loss of Internet or catastrophic event has no effect on operations because calls can be sent to voice mail or a mobile phone.
  • Cloud servers have redundancy within an off-site facility that has safeguards including back up power sources.
  • If everything else fails, SIP-Trunks will automatically transfer calls to a predetermined location

Cons:
  • Stability of provider may vary within operations and finance
  • Without a cellular backup, loss of Internet results in loss of phone service, specifically the ability to make and receive calls.
Pros:
  • With SIP trunking, loss of Internet or catastrophic event has reduced affect on operations because calls can be sent to another number or a mobile phone. This is because of fail-over within an off-site facility that has safeguards including back up power sources.

Cons:
  • A loss of power or Internet, even when using battery backups and cellular fail-over technology, will result in the failure of VoIP calls.
Future Expansion
Pros:
  • The provider manages the system as it becomes larger and more complex
  • Adding numbers and extensions is easy and fast
  • Programming can be done remotely which saves on service calls

Cons:
  • Changes may be slow to be implemented depending on the provider
Pros:
  • You have complete control of the system and the time-table for adding extensions

Cons:
  • Expansions increase complexity and make the system more difficult to manage
  • System may need additional licenses or hardware to accommodate additional extensions
Control
Pros:
  • Software patches and updates are handled by the provider.
  • New feature installation is handled by the provider
  • IT staff can commit resources on other projects

Cons:
  • Your provider has control of the system
Pros:
  • You have complete control of the system.
  • You can ensure that you are only paying for what you need.

Cons:
  • Your IT staff is solely responsible for system control.
Flexibility
Pros:
  • Service provider shoulders the burden of providing resources necessary to implement system changes.
  • Moving a phone system is easy. All you need is a broadband connection.
  • Adding or removing extensions is quick and easy.

Cons:
  • Hosted options can be expensive as the scale of the system increases.
Pros:
  • Ultimate flexibility as you have full-control of the system.

Cons:
  • You may lack IT resources at times when changes are necessary.
  • May need additional licenses or hardware to expand the system.
Implementation
    Pros:
    • Programming and Installation is handled by the provider.
    • Services are quick, easy, and affordable to set up.
    • Minimal IT resources committed to set up.
    • Post-installation changes can be applied quickly from a remote location

    Cons:
    • Training for end-users may or may not be provided.
    • Bandwidth may need to be increased to accommodate VoIP traffic.
    • Network infrastructure may need to be upgraded to accommodate IP traffic.
    Pros:
  • You'll have full-control and knowledge of system capabilities.
  • Cons:
  • Takes longer to deploy than hosted options as server hardware has to be ordered and installed.
  • Training for end-users may not be available from the installer.
  • Changes may require technicians to come to site or IT staff to commit resources
Recommended For
    Any size business that wants to minimize IT dollars and time, outsource system maintenance, or needs the highest flexibility in adding, removing, or moving extensions. Ideal for a remote workforce or small business with minimum capital available for infrastructure investment.
    Medium or large businesses with sufficient IT resources to manage the system and server. Companies with an IT staff that is knowledgeable in voice traffic best-practices. Businesses that value control or want minimal recurring costs, such as monthly fees.

CLOUD

ON-PREMISE