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Are Premised Based Phone Systems Going Away?

Speculation has been rampant over the past few years that the premised based phone system was going the way of the dinosaur.  We’ve also heard that brick and mortar stores were going away- but trends now show that the opposite is happening.  The answer about phone systems isn’t as cut and dry.

Before we get into this discussion too deeply, we need to learn what the differences in on premise and hosted solutions are.

On-premise phone systems are typically found in “that closet”- you know, the one with all the wires, boxes on the wall, and the blinking lights.  So many blinking lights.  Usually you purchase or lease the equipment that makes the phone system go.  Servers, cards, cabinets, etc.  Someone on your staff or a technician is usually required to make changes to your system.

Hosted, or “cloud” phone systems are deployed and maintained off-site in a data center.  You pay a monthly fee (usually per user) that allows you to access the phone system and make calls.  Your phone service rides over the internet- either bandwidth you source and provide (BYOB= Bring Your Own Broadband) or over a “private” network that is installed, configured and maintained by the hosted phone system provider.

Now that we have a clear understanding on the differences between on-premise and hosted phone solutions, which one makes sense for your business?  That depends on a lot of factors- many times related to the size of your business.

Smaller companies are often perfectly fine putting their phone system in the cloud- one less thing for a small business owner to maintain and worry about.  Additionally, unlike with traditional systems, there are no surprises each month when you open your bill.  Most hosted providers operate primarily in the OPEX space- meaning that telephone systems and maintenance are charged at a flat rate monthly making cost predictable.

Mid sized and larger businesses are typically (although it is starting to change) on-premise candidates (either VoIP or traditional) because they have staff and resources to dedicate to keeping their systems running.  There is however a seismic shift ongoing as larger organizations want to use scarce technology resources in more strategic roles- so eliminating or simplifying phone system management and maintenance does just that.

To make a long story short, it depends on your business.

Whether you are trying to extend the life of your current PBX by moving away from analog and PRI services, or you are ready to make the leap into hosted systems, Accurate Communications can be your guide to increase efficiency, maximizing your investment and streamlining your communications.  We will perform a no-cost, no-obligation review of your systems and make recommendations on how to improve your communications.  Contact us today.