Teledata Technologies

Premises or Cloud-based Phone Systems?

Effective communication is the hallmark of every successful business, and to that end, investing sound phone system whether it be in VoIP (Voice over IP) or Premise Based is perhaps one of the most important decisions you may have to make to ensure the ultimate success of your business. You may find yourself at odds when trying to decide whether to go for on-site phone systems or cloud phone systems. Both have their advantages and uses for your business, but how do you decide on the best call center software for your business?

We at Comworx provide you a simple answer. You tell us your business needs and we familiarize your with the costs and benefits for the one that best satisfies your requirements. Before we explore the factors you should take into consideration, it is imperative that you first understand the differences between the two phone systems.


On-site vs. cloud phone systems

Put simply, on-site phone systems are those in which the hardware appliances are installed and stored in your local server closet. Cloud based contact centers, on the other hand, are systems in which the IP phones are plugged to an internet connection that remotely operates the equipment through a hosted cloud data server. The internet access is patched through a provider that is responsible for maintaining the off-site cloud server.

Opting for either of the two will depend on a variety of factors. 

Type of current infrastructure

One of the factors that you need to take into account is what type of infrastructure are you currently using. For example, are you using a POTS (Plain Old Telephone Service) line? If yes, then you might be better off with an on-premises telephone system as opposed to a cloud based one.

If you are currently using a PSTN network to connect to your phones and, as a result, finding it expensive to maintain it, switching over to a VoIP phone system will be more beneficial. This comes down to your use and to what extent you expect to save costs.

Potential for business scalability

Another area of consideration is how scalable do you expect your telephone requirements to be in the near future. For example, are you a business that expects to expand its outlets, stores, or offices in the next 6-12 months? If so, then we at Comworx can provide you with a cloud telephone system to effectively meet your business needs and exapnd as your business grows.

This is due to the fact that a hosted telephone system offers numerous scalability opportunities, allowing you to utilize your communication needs as your business expands.  If your business consists of a workforce of around 15-20 employees, then opting for an on-site phone system is could be sufficient.

Cost of the system

Perhaps you are tight on budget and are focusing on keeping your costs low when deciding to choose a phone system for your business. In this case, select one with the lowest upfront costs. PBX systems, for instance, are very expensive as they require paying a large amount in upfront costs. VoIP systems, on the other hand, involve far less setup costs, which is perfect for keeping it under your limited budget.

However, do not forget to consider the long term costs. If you opt for VoIP, for instance, it can cost you a lot more than PBX systems in the long run as you hire more employees. PBX systems are more advantageous in terms of scalability and could potentially offer greater cost-savings as your business expands.

End note

Whichever phone system you intend to select, it is crucial that you first view your business goals and objectives to accurately decide which option best fits your requirements. If you wish to know more on how to make the best investment, feel free to consult us using our free consultation service.


PBX, Shoretel, business phone system, support services, premesis based Phone system, VoIP, cloud based, toshiba


Cloud technology is evolving rapidly, offering compelling opportunities for businesses to move their processes into a cloud-based deployment mode, with many advantagesl. This is especially true for cloud communications. When deciding which communication technology is right for your organization, it’s important to understand VoIP and UC trends, and how these trends can provide an advantage for your business.

Download the Whitepaper to see how to take advantage of Unified communications for your business. 


Subscribe to Email Updates


Posts by Topic

see all

Follow Us