Cloud-based Communications Vs. On-premises Operations, Moving Towards Process Tranformation

Telecom Tech Outlook | Thursday, June 06, 2019

FREMONT, CA: The innovations in technology have penetrated communication sector. There is a noticeable shift in the way companies run their communication as managed business phone providers these days mostly deal with voice-over-IP (VoIP).  Essentially, there is a more significant push towards cloud-based deployments. Although the VoIP over the cloud might seem like an ideal option given its advantages, companies must consider several factors that could prove otherwise.  

Going by general trends, one might believe that digitalization gets full-fledged when it comes to communication. But, many clients to which service providers cater to have many functions in analogs still. The phone systems also depend on the physical environment where they reside, and this environment may not be entirely digital. In such a scenario, companies should be cautious and limit themselves to on-premises VoIP. This would require VoIP phones, a network, and a private branch exchange (PBX).

In determining the kind of technology a company opts for, cost plays a significant role. Unified communications-as-a-service, or UCaaS model, which is based on public clouds, has the advantage of cost. On careful analysis, though, companies would realize that on-premise phone systems are less costly in some instances. The companies opting for on-premise systems might have to invest in a PBX at first, but over the long, the cost of maintaining the PBX would be less as compared to maintaining a cloud-based VoIP.

Companies sticking to on-premise telephone operations would not have to worry about dealing with extra chores that come with maintaining cloud operations like custom integration, DevOps, and software management. Additionally, companies dealing in sectors that mandate compliance regulations find it easier to ensure compliance by limiting themselves to on-premise telephone services. Cloud-based operations would require more effort in ensuring compliance. Another factor that works in favor of analog phone systems is the fact that established companies might already have analog devices in right working conditions. These can be connected, to VoIP networks through adapters. The going cloud might render these devices waste.

There is no general rule that can dictate which model is best. Communication needs vary from company to company, and firms should use the technology that serves their cause to the best.