On-premise phone systems have been a crucial part of business communication for decades, facilitating seamless and reliable voice communication for businesses of all sizes.
Despite the emergence of various communication methods such as email, chat, and social media, on-site office phone systems continue to play a significant role in business communication for certain industries.
A recent study by BIA/Kelsey revealed that businesses receive more than 169 billion phone calls every year, underscoring the continued need for reliable business phone systems. While cloud phone systems have grown in popularity, on-premise systems remain a viable option for businesses looking for greater control, security, and customization.
In this blog, we will explore the differences between on-premise and cloud options and highlight the reasons why businesses would choose an on-premise phone system. We will also delve into the various components of on-premise phone systems and compare manufacturers and service providers to help businesses make informed decisions.
The Differences Between Cloud and On-Premise Phone Systems
On-premise phone systems and cloud phone systems are two different approaches to managing business communication needs. While cloud phone systems have gained popularity recently, on-premise phone systems still hold a significant share of the market due to their security, reliability, and cost structure.
A cloud-based phone system, also known as hosted VoIP or UCaaS (Unified Communications as a Service), is hosted off-site and is accessible through the internet. The provider or your managed services partner is responsible for maintaining and updating the system, which is accessible to the users through a web-based portal.
In contrast, an on-premise system is installed on-site, managed by the business’s IT team or a third-party managed services provider, and connected to the phone and network systems within the organization. Three main reasons why businesses prefer on-premise phone systems over cloud systems include:
- Security – With on-premise phone systems, businesses have greater control over their communication infrastructure, ensuring that sensitive data and conversations remain within the organization’s network. In contrast, cloud systems are hosted off-site and require third-party access to the organization’s data, which could pose a security risk.
- Reliability – On-premise phone systems operate independently of the Internet, meaning that businesses do not have to worry about disruptions due to Internet outages or other technical issues. Cloud systems, on the other hand, rely on internet connectivity, and any disruptions can impact the quality of calls and overall communication performance.
- Cost – While cloud systems offer lower upfront costs, businesses have to pay a monthly fee for accessing the service, which can become costly in the long run. In contrast, on-premise phone systems have higher upfront costs but do not require ongoing fees, making them more cost-effective in the long term.
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Various Components of an On-Premise Phone System
When it comes to on-premise phone systems, there are several manufacturers and service providers to choose from. Here is a breakdown of some of the key components and the providers that offer them:
On-Premise PBX Systems
PBX phone systems are the backbone of the on-premise phone system.
Mitel and Avaya are two of the leading providers of PBX phone systems. Mitel phones systems offer the MiVoice Business platform, which provides advanced call routing, voicemail, and conferencing features. Avaya phones systems offer the IP Office platform, which includes features such as call recording, video conferencing, and mobile integration.
Phone and Network Systems
On-premise phone systems require phone system software that is connected to the local network. Providers such as Cisco and NEC offer phone and network systems that integrate with on-premise phone systems.
Cisco offers the Unified Communications Manager platform, which provides a complete suite of communication tools, including video conferencing, instant messaging, and presence.
NEC offers the UNIVERGE 3C platform, which is a complete unified communications solution that includes voice, video, and messaging.
On-Premise VoIP Phone System
An on-premise VoIP phone system allows businesses to make and receive phone calls over the Internet using VoIP technology. This means that companies don’t need traditional phone lines and can instead use their existing internet connection to make phone calls, which can be a cost-effective solution.
This means it’s critical for a business using these features to have internet redundancy with a backup provider to ensure communications are maintained at all times.
Additionally, on-premise VoIP systems can be integrated with other communication tools such as email and instant messaging, allowing for a unified communications solution.
SIP Trunking
SIP trunking is a technology that allows businesses to connect their on-premise phone system to the internet. Providers such as SIP.US and Flowroute offer SIP trunking services that integrate with on-premise phone systems.
Premise-Based Phone System
Premise-based phone systems are installed on-site, allowing businesses to have complete control over their communication infrastructure.
Providers such as Global CTI offer on-premise phone system installation and management services, which include advanced call routing, voicemail, and conferencing features, as well as support for SIP trunking and mobile integration.
Overall, the choice of on-premise phone system components will depend on the specific needs and budget of an organization. By comparing the offerings of various manufacturers and service providers, businesses can choose the components that best fit their communication needs.
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Get the Best On-Premise Phone System With Global CTI
While cloud-based phone systems have gained popularity in recent years, on-premise phone systems remain a viable option for businesses. On-premise phone systems offer greater control, security, and reliability, and businesses can benefit from lower long-term costs.
Global CTI offers a range of on-premise phone system solutions, including Mitel phones, phone system software, and unified communications solutions. Our solutions are designed to be scalable and customizable, making them an excellent choice for businesses of any size.
So whether you’re a small business just getting started or a large organization with high call volumes, our on-premise phone system is a reliable and feature-rich solution to manage your communication needs.
To find out more, contact us today and speak with a representative.