Decision Making

On-Premise Phone Systems vs Cloud-Based Phone Systems: How to Choose

Host on-premise or on the cloud? This is a common consideration for many business owners looking to upgrade their company’s phone system in this digital era.
To make the most suitable choice for your business, you’ll need to consider whether the phone system facilitates staff flexibility and what features are required to achieve consistent performance.
This guide will explore the key differences between these two communication systems to help you decide on the best one for your customers’ needs and your operational model.

What Makes Cloud Telephony Different from On-Premise Telephony?

Traditional telephony involves the on-premise installation of phone systems through the linking of all company phone extensions and their subsequent connections onto public phone networks. Advanced on-premise phone systems also incorporate VoIP services.
Cloud-based systems, on the other hand, facilitate linkage of a brand’s network of phone extensions using the internet. Where on-premise telephony uses desk phones, cloud phone systems utilize softphones.

Advantages of Cloud Phone Systems vs. On-Premise Phone Systems

Here are a few benefits you can expect when investing in a cloud phone system:


The most noticeable upside that cloud telephony has is the degree of scalability that it gives businesses. It allows for service adjustments in accordance with seasonal and industry fluctuations.
Cloud phone systems allow for automatic installation of updates, as opposed to traditional phone systems, which need manual upgrades that could be expensive, time-consuming and cause downtime.

No Installation Costs

You don’t have to invest heavily in the initial installation or PBX maintenance — as is the case with on-premise systems. Cloud phone systems don’t require significant capital outlay, making it suitable for a wide range of businesses, especially start-ups and small businesses.


With cloud phone systems, your team doesn’t have to work from the office. They can work wherever, whenever with access to good internet. Remote working offers your team more flexibility to plan out their day, making them more productive.

Quick and Easy Call Management

Cloud phone systems come with extra features that allow your team to organize and manage business calls. Besides streamlining your processes, this allows you to easily collect data from your customer base.

Scale Up Your Business with Reliable Telephony Services

Costco members get exclusive pricing on reliable, unified cloud communication solutions that can help improve productivity and collaboration among your employees, from Intermedia Cloud Communications.
Intermedia is a top UCaaS provider dedicated to providing easy-to-use and secure communication and collaboration solutions to businesses all around the country.