It seems every aspect of business is going online now. Recent research estimates that roughly 83% of a company’s records, backups, files, and workload will be stored on the cloud in 2020. But should everything be stored on the cloud?

While cloud-based technology has many benefits, it also has an equal number of downsides — such as lack of security and problems with network speed. Despite the push for cloud-based storage and technology, sometimes on-site is still the better and safer option. This post will discuss the main differences and benefits between on premise phone systems and hosted phone systems to help you choose which is right for your business.

What Is a Hosted Phone System?

A hosted phone system is a managed service wherein a third party company (or provider) is the host of the system. While your business has control over all communications, you don’t have to deal with having a large infrastructure to manage the system itself. The main benefit here is that you don’t have to deal with the maintenance of the system, managing the operation, or dealing with installation costs. However, you may lose some control and security in the process.

What Is an On Premise Phone System?

An on premise phone system, rather than being hosted by an outside party, is hosted on servers on-sit. These servers are managed by the business in question. This gives your business complete control over the management, upkeep, and security of your system. This also means that your company must have the infrastructure and resources in place to handle this management, upkeep, and security. Alternatively, you can pay a third party to provide IT and security services.

Which Is Right For My Business?

Both systems have their benefits — and both have their drawbacks. The key is to find the one that will fit with your business model, available resources, and current infrastructure. To do this, ask yourself some questions about what you are looking for.

If you are interested in the cloud-based option: do you have access to the high-speed internet connection required for a cloud-based service? Is the benefit of reducing the resources and cost of managing an on premise system worth the loss of control and security?

And if you’re looking at the on-premise option: do you have the resources in place to cover your network, power requirements, security, and maintenance to handle an on premise phone system? Do you have access to your own IT administrator or team to keep it up and running (or are you willing to hire a third party team)? Is the added cost and effort worth the added security?

Implementing Your New System

Understanding the benefits, drawbacks, and differences between the two systems listed above is critical to making an informed decision. Once you’ve decided between an on premise phone system and a hosted phone system, contact your local communications expert to get your new system started. Contact ICC 360 to set up your on premise phone system, as well as any communication and tech business needs — including IT disaster recovery services, call center solutions, and cybersecurity consulting.