Re: Spring 2016 | Page 95

On-premises vs Cloud – Which is right for your business? If, like many businesses, you have spent any time looking at your telecommunications need, you will undoubtedly have heard people referring to ‘The Cloud’. What is this cloud and what does it mean for the good old faithful Telephone PBX System residing in many businesses throughout the world. Cloud based or ‘hosted’ telephone solutions work using VoIP (Voice over Internet Protocol) and is essentially a phone system which carries voice over the internet using digital signals and has numerous benefits which has increased its popularity in business telecoms. This then goes through a ‘hosted’ or cloud provider meaning there is no need for any hardware in the office except the handsets. Purchasing the right telephone system is important for the success of any business and there are several factors that come into play when deciding between a premisesbased and hosted (Cloud) VoIP phone system. If you are unfamiliar with Cloud based services some of the main pros and cons are: Advantages • Communication-related disasters are handled by the hosting provider • Companies can focus more on their business activities and goals • Low initial investment • Maintenance and upgrades are taken care of by the hosting provider Disadvantages • Extra cost for added features • Limited flexibility of users • Monthly fees • Reliance on internet connection Cost is one of the biggest factors a business considers when investing, and choosing a telephone solution is no different. Hosted VoIP solutions have the benefit of low start up costs with continued savings on calls, reduced maintenance and line rental. Purchasing an on-premises system clearly comes with a more substantial initial cost, however these can be spread over time by leasing or renting the equipment. This is a method many companies use to spread the cost whilst keeping the benefits of having an in-house system. Owning the system gives a business a potentially lower on-going cost, however there is a price when maintaining the hardware that can be dealt with on an ad-hoc basis or through a maintenance plan with the supplier. Modern systems are increasingly resilient, but should the worst happen, such an essential business communication tool shouldn’t be left at risk and by owning a system means the responsibility lies to some extent with the owner. For most businesses with success in mind, growth will be an element of the company’s operations which takes significant planning. If there is potential for immanent growth you will need to consider how this will impact your purchase decision. Both on-premises and hosted solutions provide the possibility for expansion and there are costs to consider for expanding. For example, adding more handsets to an on premises system requires purchasing more IP phones, possible additional licensing and system hardware. This combined with engineering requirements makes expanding an on-premises system more labour intensive. With hosted (cloud), however, additional IP phones can be bought and added to the service plan, which requires additional programming time by the provider. This can also increase the monthly cost, depending on how plan has been set up. Possibly the most important aspect to consider is understanding which features your business needs and which system can best meet your requirements. Many hosted providers don’t offer the same out of the box features in their hosted product as they do for their on-premises based solution, however it’s worth noting that there are some excellent hosted solutions out there. The Horizon hosted offering comes with many of the features included so you don’t have to worry about lack of features when choosing a cloud based solution. Essentially pitting the two options against each other by comparing their respective benefits and shortcomings can’t provide a unified solution. The choice ultimately comes down to a case of which option is most suitable for your company’s requirements and ways of working. B  y Kyri Jones Overline.com 95