In today’s rapidly evolving technological landscape, the need to upgrade outdated phone systems has become essential for businesses to maintain efficiency, scalability, and effective communication. Two primary options emerge when considering this transition: premise-based systems and hosted phone systems. In this blog, we’ll explore the characteristics, benefits, and considerations of both approaches to help you make an informed decision for your organization.
Premise-Based Phone Systems
Premise-based phone systems involve setting up the entire communication infrastructure within your physical location. Here’s a breakdown of their key characteristics:
- Control: With a premise-based system, your organization completely controls the hardware, software, and network infrastructure. This control allows for customization and tailored solutions to meet your specific needs.
- Security: Since all the equipment and data reside on-site, premise-based systems can offer higher security. You can implement your own security measures and protocols to protect sensitive communication.
- Initial Investment: Setting up a premise-based system requires upfront investment for purchasing hardware, software licenses, and maintenance. However, this cost might be balanced by the long-term savings compared to monthly hosted service fees.
Hosted Phone Systems
On the other hand, hosted phone systems, also referred to as cloud-based or VoIP systems, move the communication infrastructure off-site and onto a third-party provider’s servers. The two big benefits of hosted are:
- Scalability: Hosted systems are highly scalable, allowing you to easily add or remove lines and features as your business grows or changes. This scalability is especially beneficial for businesses with fluctuating communication needs.
- Cost Structure: Instead of a large upfront investment, hosted systems typically operate on a subscription-based model. This can alleviate financial strain and offer more predictable monthly expenses.
Considerations When Choosing Your System
Both premise-based and hosted phone systems offer unique advantages. Your choice will depend on your organization’s size, budget, technical expertise, and long-term goals. Here are a few considerations to guide your decision-making process:
Cost: Compare the initial investment of a premise-based system with the ongoing subscription costs of a hosted system. Consider which aligns better with your budget constraints.
Control: Determine how much control you need over your communication infrastructure. Premise-based systems offer more customization, while hosted systems provide ease of management.
Scalability: Evaluate whether your business experiences fluctuations in communication needs. Hosted systems can easily accommodate growth and changes.
As you embark on the journey of upgrading your old phone system, remember that the choice between a premise-based and hosted system isn’t a one-size-fits-all decision. Each option brings its own set of benefits and considerations. By analyzing your organization’s unique needs and priorities, you can make an informed choice that will pave the way for more efficient, effective, and modern communication.
Whether you opt for the control and security of a premise-based system or the flexibility and scalability of a hosted system, your decision will undoubtedly contribute to a more connected and productive future for your business. ATCOM offers both options and we would love to discuss your specific needs with you.
Written By Bryan Sayers