Internet Based Business Phone Systems – Although there are many options to choose from, you can convert it to an on-premises or cloud-based system.
There are pros and cons to running your phone system locally or storing it in the cloud. This will be a difficult but important decision for business owners. Business communication can be made stress-free by choosing the right system.
Internet Based Business Phone Systems
In this article, we share the pros and cons of both options. In the end, you’ll have a clearer idea of which phone system best suits your unique needs.
Phones For Office
A local telephone system is a telephone system physically installed in a building. This can consist of physical cabling around the office that connects the office data center to the employees’ desk phones. Or you can use IP technology and connect via an Internet connection. Either way, the main PBX system is located inside your physical workplace. Building-based phone systems can be expensive to install because of the equipment required. For example, you need IP phones and SIP trunks. Not to mention the separate room in the office where the equipment can live. Repair is also inevitable. You will need an IT team or a third-party service to resolve these issues. These extra costs can be costly to your business. The flexibility of physical systems is also lacking. The person to be called through the business phone system must be physically present in the office. Remote employees cannot make or receive calls away from their desks.
What is a hosted cloud phone system? The hosted phone system works as an on-premise solution. The only difference is that the calls are made through the existing internet connection. This gives you more flexibility and freedom that you don’t have in the old school environment. This means that cloud phone systems tend to be cheaper than their alternatives. All connections for which you have to pay will be installed. And because these connections are made over the Internet using Voice over Internet Protocol (VoIP), it starts faster. But one of the biggest differences between cloud and on-premises phone systems is that remote teams can use a hosted solution. Team members can be on the other side of the world, making phone calls and taking part in conferences if the right VoIP software is installed on their device. Speaking of which, you can still use your normal, everyday gear. You don’t need separate IP phones or landline desk phones to use a cloud-based phone system. To receive calls, download the provider’s app to your laptop, mobile device or VoIP conference phone. If you prefer new equipment, a VoIP headset is a great choice. They provide crisp and clear sound, and the wireless ones have an incredible range. You can answer a phone call on foot or sit on the other side of the office and still have a crystal clear phone connection. VoIP desk phones are also powerful and easy to use. They provide mobility unseen in the old telephone system. Your office team can physically take their phone home and continue working without interruption, or vice versa. Local and cloud phone system. Now that we have a better understanding of both phone systems, let’s take a look at the main differences between the two. Costs and Maintenance The most obvious benefits are setup costs and ongoing maintenance. After completing the lengthy and expensive setup, it is your responsibility to maintain your local solution. The costs and maintenance related to the maintenance of the local system is one of the main points of our video below: Fortunately, a cloud-based system takes all these problems out of your hands. Flexibility for remote teams A cloud-based solution is more flexible for distributed and remote teams. Employees don’t need to use their personal devices when they’re out of the office or working remotely. They can use their business phone number on a mobile device to make and receive business calls. People at the end of the line won’t notice any difference. Reliability It should also be noted that hosted phone systems are more reliable than their traditional counterparts. Your PBX provider is responsible for the maintenance, security and general upkeep of your cloud phone system. Which one is right for your business? 4 Questions to Consider We already know that on-premises solutions tend to be expensive and offer limited services. But that doesn’t mean you should rule them out completely. Some companies still prefer native solutions. So do you absolutely need a local system? Or can you move to the cloud? Check out these four to help you choose the best one for your business. 1. How much can you spend? The most important thing to consider when choosing between hosted VoIP and on-premises phone systems is cost. Both providers provide an upfront payment and a monthly service fee when you request it. However, it is important to note that VoIP is generally much cheaper than on-premises solutions when it comes to total cost of ownership. Of course, you have to pay a monthly fee for the connection, but the maintenance costs are not too high because the ISP manages it remotely. No need for IT to repair your network. VoIP setup costs are also lower because you can use existing equipment. Remote workers’ personal phones can work just like work phones. You can also retrofit your current analog telephones or PBX setup with a VoIP adapter. Related Post: How Much Does a VoIP Phone System Really Cost? 2. Do you have a remote team? It is more difficult for a remote team member to call a building-based phone system. Connections are physically transferred from the data center to the device within the office. This makes them a poor choice for businesses with remote teams. However, cloud solutions allow remote teams to develop. Employees can access the Voice over IP business phone system from anywhere in the world. They need an Internet connection to make and receive business calls. And the best part? Call quality has improved significantly. VoIP solutions send voice waves and convert them into digital files over the Internet. Even if the end user is not using a VoIP system, it has twice the bandwidth of a typical analog phone call. All you need is an internet connection with a strong enough bandwidth. If you’re not sure if your internet can handle a VoIP connection, try our free network speed test. 3. Are you planning to expand your team? A hosted phone system is more scalable than an on-premise alternative. This is because there is no need for additional wired lines to the local data center. Instead, your hosting provider can add another line to your online account. Any new team member can create an account in minutes. And because they can use technology they already have, devices like their work laptop or cell phone can also serve as business communication tools. This means that the system’s scalability makes hosted VoIP great for growing communities. If you plan to expand your call center or hire new staff in the next few years, call management will be easier with one provider. 4. How much control do you need? Do you need complete control over your entire network? In this case, an on-premises solution may better suit your business needs. When the system is in your office, you have full control and access to an in-house IT team that better understands the nuances of your network. If you prefer a hands-on approach to managing and maintaining your phone system, a hosted solution may be better. Your provider is responsible for all care. And since you don’t have extra equipment in your office, you only need to update the software of the devices you use. It’s very simple. Choosing a Business Phone System Provider Have you decided which phone system to use? Then it’s time to choose a local or hosting provider that will provide you with the phone service you need. Below are four key things to consider when choosing any new phone provider. Reliability: How often does your cloud provider experience technical problems or downtime? The more uptime, the less likely your business phone system will go down. (The business voice network connected more than 1 billion calls last year!) Accreditations: Check that your service provider is ISO/IEC 27001 certified and SOC-2 and PCI compliant. This shows that their network is secure. If you work in certain industries, such as healthcare, also check to see if your hosted VoIP provider is HIPAA compliant. Security: Local and VoIP phone systems are generally secure. Check your provider’s commitment to security by asking about their security protocols and see if they have guidelines for reporting vulnerabilities. Important services: Check if your ISP offers the same services
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