On-Premise Business Phone Systems: 12 Things You Need to Know
When it comes to planning your business phone system, you have plenty of options. You can go with a hosted, cloud-based service or get an on-premise solution that's installed in your office.
You need to understand the benefits and drawbacks of both so you can make the right decision for your business needs.
This blog post will discuss 12 things about on-premise solutions that you need to know before purchasing!
1. What is an on-premise business phone system?
An on-premise business phone system has all of its hardware installed in your office. It consists of hardware like phones, routers, and servers, as well as software to tie everything together (the PBX).
Most modern on-premise phone systems carry voice traffic over a broadband connection. They are often configured with backup power supplies and redundant fail-over circuits to eliminate system downtime. Redundant circuits are often a different type of circuit or from another provider to provide continuous service if one experiences an outage. Critical connections, like those used for credit card processing, might even use legacy copper phone wiring.
2. How does an on-premise business phone system differ from a cloud-based business phone system?
Cloud-based systems' hardware and outbound lines are hosted by a single third-party provider with one monthly fee for the bundled services. An on-premise business phone system has hardware located within the business facility, and a separate circuit carrier provides phone connections.
On-premise systems tend to be more customizable than hosted solutions, especially when custom integration with software or other devices unique to your business is required.
3. What are the benefits of an on-premise solution?
The most significant benefit for most businesses is control. With an on-premise solution, you control both the hardware and the software and the circuits that tie everything together. Also, there is less risk of phone system failure from outside influences since it is installed in your office. A hosted phone system depends on its internet connection (and fail-over connection, if available) to provide phone service.
On-premise phone systems can be custom-tailored to your specific business and workflows. In-house training can be very specific to a particular team or role, each having its own phone customized configurations.
You purchase and own your equipment, phones, hardware, and software. There can be tax advantages to purchasing over leasing your system over time.
On-premise phone systems also provide an added layer of security since all voice traffic is limited to your on-site hardware and software before connecting to other end-points. Your call history will not be exposed to third-party providers like it might be with a hosted voice solution.
4. Are there any drawbacks to an on-premise business phone system?
The biggest drawback with an on-premise solution like this is the cost. On-premise phone systems can be costly to install and maintain, so you need to consider all available options before purchasing one. Depending on the number of seats in your building and any unique requirements you need to access, an on-premise solution can be more cost-effective over time.
On-premise phone systems also require businesses to have an experienced in-house IT person or a managed services provider to access, monitor and maintain their hardware, software, and connections.
While most modern on-premise phone systems are fully scalable and feature-rich, some are not.
Your Cady Business Technologies salesperson will assist in matching your business needs to an ideal technology solution. We can navigate the complex landscape of voice technology and recommend solutions that fit your current needs and are easily expandable to grow with your business.
5. When should I get an on-premise business phone system?
It's best to get an on-premise business phone system if you need total control over your hardware and software. Large offices whose employees work on-site can benefit from having their phone systems on-site. Some industries use software that integrates with their phone system. This integration often requires specific phone hardware or software components that cannot be replicated in a hosted voice environment. For example, some companies use custom apps that connect phone traffic with the data in their CRM.
6. What is a hosted business phone solution?
A hosted business phone solution is one that's delivered from a central provider over an Internet connection. To use your office phones, they will need to be connected via IP address. This type of service offers a lot of flexibility and features that can be installed or changed at any time.
7. What are the benefits of a hosted business phone solution?
The most significant benefit for most businesses is cost - you only pay a monthly fee instead of an upfront price. In most hosted systems, the physical phones and long-distance services are bundled together in your monthly payment.
8. What are some drawbacks of a hosted business phone solution?
The biggest drawback to going with a hosted service is that you don't have control over your physical hardware. Also, the PBX does not live on-premise - it's managed by someone else, which can be risky for security reasons. However, most cloud providers offer a fully encrypted solution for this very reason.
While hosted phone solutions have "call management" software to control call traffic and feature configurations, on-premise systems often provide far more robust control over call routing, voicemail, and after-hours features.
It is crucial to establish a comprehensive call workflow that considers the call path of every type of phone call - inbound and outbound. Being thorough in this process will ensure that your phone system will be able to perform every task you need it to without compromise.
9. When should I get a hosted business phone solution?
Suppose your business technology needs are not particularly complex, and you are looking for a cost-effective, scalable solution that will grow with your business. In that case, it's probably best to consider a hosted voice solution.
A hosted PBX is best for businesses that need the latest features and technology but don't want to pay for upfront costs or manage their own equipment (that can be costly). In addition, it's great if you have employees who travel frequently or work from home since they can more easily access the company phone system using any device (i.e., smartphones, tablets).
10. When should I NOT get a hosted business phone solution?
If you're looking for total control over your hardware and software, then it's best to go with an on-premise business phone solution. Also, if security is critical to you, then an on-premise solution is the way to go since all hardware is installed in your office.
11. What else should I know about business phone solutions?
Most companies have a "hybrid" model where they use both an on-site PBX and cloud services for added flexibility. Some companies use hosted PBX solutions for all of their employees - even those who work in the office. Also, it's important to know that most providers charge by phone number, so if you have more than one office location, then you'll need a separate subscription with each site.
12. What is the best type of phone circuit for my business phone system?
This subject really deserves its own blog.
What is the difference between an internet connection and a SIP trunk?
Is cable or fiber better for voice?
How about point-to-point wireless transmission from my downtown rooftop?
In a future blog, we will discuss the different types of phone connections you might consider and what is best for your on-premise phone system.
Conclusion
On-premise phone systems provide powerful business tools for many businesses and should be considered whenever purchasing a new voice solution. On-premise and Cloud-based phone systems each have unique advantages (and disadvantages).
At Cady Business Technologies, we sell and support both on-premise and cloud-based phone systems. We don't push you to buy one over the other - we simply help you find the best solution for your business needs.
Our experienced sales engineers will help identify the features that your business phone system requires. We may even be able to deliver a solution for an issue that you didn't even know you had!
Give us a call today at 763-314-2239, or email us at info@cadybt.com to set up a free business evaluation and consult.
