When upgrading to a new business telephone system, you will have to answer any questions. The main question maybe this: “Will your telephone system be hosted in the cloud or on-site?” Today, several smaller businesses leverage the cloud owing to its affordable setup, flexibility, and other superb advantages. A cloud PBX system may be powerful, but might not be the best solution for all businesses. This will depend on the unique requirements of your business.
The Difference Between Traditional and Cloud Telephony
The conventional method involved setting up a telephone system on-site that connects every phone extension and links these all to a public telephone network with PSTN or ISDN lines. Telephone systems were usually a capital expenditure purchase with an up-front cost which canceled out over time owing to ROI. Conventional phone systems can connect to VoIP services, which prevent the excess costs of international calls over a PSTN line.
A cloud or hosted telephone system connects the phone extensions in a network through the internet. You would pay money for the endpoints or softphones, any training that you might require, and a fee as monthly rental for the cloud system.
The Advantages of Cloud Telephony
The most obvious advantage may be the level of flexibility that a cloud phone system offers your company. You can scale your services as per seasonal fluctuations and seasonal requirements, and you do not have to bother about paying money for PBX maintenance gradually. Moreover, available upgrades can be deployed to your computer, and you do not require an engineer’s help with this. Cloud-based telephony benefits from the following.
- Initial setup and/or PBX maintenance is free of cost
- Free calls between multiple offices
- Exceptional voice quality
- Ability to make changes and additions instantly
- Ability to handle facilities and calls as needed
- Support remote collaboration
The Advantages of a Conventional Phone System
A traditional PBX phone system also offers many benefits to you. The cloud solution is best suited for small companies having simple requirements and stable internet connections. However, for bigger businesses needing constant reliability and complex solutions, on-site systems may give the best value. Some of the advantages of using an on-site PBX system are explained in a nutshell below.
- Server ownership costs come down over time
- Usually, the provider handles professional training
- SIP trunking can send phone calls to other mobile phones or numbers
- It is possible to add open-source APIs and feature sets to access more features
You will also have to consider your present and future needs when choosing between the two options.