Cloud-Based IP Phones vs. On-premise VoIP Systems: Pros and Cons

In the past, people preferred to use traditional phone systems to manage their business's internal and external communications. It’s time to upgrade your phone system to one that is easy to operate and cost-effective as well. The two most popular phone systems these days are cloud-based IP phones and on-premise VOIP systems. But there’s still confusion about which one is more suitable for your business needs. Are you also among those worried about which is the right option? Don’t be stressed. This article provides a meticulous guide about the differences between cloud-based IP phones vs On-premise VoIP on the basis of the advantages and drawbacks of these two. It will make you able to select the right communication system for your business.

What are Cloud-based IP Phones?

Cloud-based IP phones in Pakistan are considered reliable options for businesses that don’t want to spend on expensive on-site infrastructure. These are also called hosted VoIP systems, as they use the internet to facilitate voice communication. That means these systems depend on bandwidth, lower latency, and speed of the fiber internet connection for calls. From voicemail to email, video conferencing, chat, SMS messaging, and auto attendants, you will reap the benefits of various features while using cloud-hosted systems for your businesses. Quick to set up and run and affordable in price is the main feature that makes them the preferred choice for many companies. 

Working Principle of Cloud Phone System: 

Unlike on-premise PBX systems that involve the use of complex setups and costly hardware and software maintenance, this phone system uses a third-party VoIP service provider and your internet connection for voice call transmission. So, while using this phone system, you don’t need to be stressed about physical equipment maintenance and other management issues. Most IP phones look like traditional desktop phones, perfect for people who want functionality and comfort like traditional ones. If you want to convert your traditional desk phone into a cloud-based system, you can also do this by using a VoIP adapter. 

What are On-premise VoIP Systems?

On-premise VoIP phones in Pakistan are communication systems where all essential hardware and software are installed and maintained within that company’s premises. The business is responsible for managing and controlling all the infrastructure. This makes businesses able to customize their phone system features and security settings based on their business needs. The office data center is connected to employees' desk phones or IP technology with the help of physical wires, allowing them to make calls through the Internet. For businesses, who want complete control over their communication system, this VoIP system is the best option.  

Working Principle of On-premise VoIP Systems: 

The working mechanism of an on-premise VoIP system is quite easy. As these communication systems are hosted on the company’s private servers, the customer’s hardware is connected to the server. When a user makes a call, the data is routed and then forwarded to the phone. With an on-premise VoIP system, you can enjoy great freedom due to added features, such as call forwarding, call routing, and call recording. Furthermore, there is also flexibility to connect these systems with customer relationship management software to others for better performance. 

Cloud-Based IP Phones vs. On-premise VoIP Systems: Key Differences: 

• Flexibility: 

Cloud-based IP Phones: These phone systems are more flexible, specifically when it comes to ease of remote employees. While having a cloud or hosted phone system, they don’t need to use their phone to make official calls. They can access from any location with just a stable internet connection. Additionally, the employees have the resilience to upgrade their system based on their remote workforce. 

On-premise VoIP Systems: With an on-premise VoIP phone, the distribution team and remote employees can’t benefit from the same level of flexibility. As it doesn’t give them options to scale their phone system based on their work requirements. 

• Reliability:

Cloud-based IP Phones: These phone systems are more reliable as there is no physical infrastructure limitation. This system offers reliability by automatically handling software updates. Along with this, while using cloud-based IP phones, minimal maintenance is required. In a cloud-hosted phone system, the service provider is responsible for maintenance, security, and all other updates, minimizing stress over business owners. 

On-premise VoIP Systems: The VoIP systems are also reliable, but their functioning basically depends on local infrastructure. While using these phone systems, users will not face any poor internet connection problems. 

• Maintenance: 

Cloud-based IP Phones: Installing a cloud-based IP phone system is quite easy. Usually, software is downloaded that is used in maintenance. Maintenance of hosted cloud systems is mostly done by service providers. So, clients don’t need to worry about the fixation of bugs and problems anymore. 

On-premise VoIP Systems: On the other hand, on-premise VoIP systems are not as easy as one thinks. You’ll need assistance from expert IT staff for installation and maintenance. 

• Pricing and Cost: 

Cloud-based IP Phones: When it comes to price, there’s a huge difference. Cloud-based IP phones are cheaper with no additional cost, such as installation or other.

On-premise VoIP Systems: These VoIP systems are expensive than cloud-based IP phones. The extra prices related to these systems are for initial maintenance, set, and implementation. 

Cloud-Based IP Phones vs. On-premise VoIP Systems: Pros and Cons:

Cloud-based IP Phones:

On-premise VoIP Systems:

Which One is Better?

On-premise VoIP systems are the best for people looking for great control of their business communication system. They bring the opportunity to add more services and security options. Furthermore, you also offer more customization facilities. But it is not flexible and a bit expensive. So, they might not be a good choice for small businesses scrutinizing affordable communication systems. 

Cloud-based IP phones are perfect for all-sized businesses with easy-to-use and maintenance options. Furthermore, they are flexible, scalable, and cheaper than on-premise VoIP systems. 

Final verdict: 

Choosing between cloud-based IP phones and on-premise VoIP systems depends on your business needs. Both these communication systems are reliable with a few advantages and disadvantages. If you value flexibility, ease of maintenance, and cost-effectiveness, cloud-based IP phones are an excellent option for your business. But if your business requires complete control over communication systems, better security, and the ability to customize features, you can go for an on-premise VoIP communication system.