The Value Proposition: On-Premise Phone Systems
It seems a sign of the times that customers are flocking to Hosted VoIP to avoid a large up-front investment in favor of a higher monthly service fee. Demonstrate a break-even analysis under 3 years… ‘who cares’. Show them equipment financing with a lower total monthly outlay… ‘seems like a lot of work’. Show eye-popping savings over the 7-year expected life of the voice server… ‘but that’s so far away’.
We’re helping customers move various aspects of their business to the cloud every week, so we understand as well as anyone the advantages of the cloud and Hosted VoIP. In certain situations, though, it just comes down to some simple math as to whether your company is better suited for On-Premise as opposed to Hosted VoIP.
Factors that lend well to On-Premise:
- If your # of total handsets is 200% or more of your # of total phone lines
- If you have a large number of employees that need phones but rarely use them
- If all of your phones reside in one physical location
- If you need to record all of your calls
- If you have great credit and access to cheap money
- If you have a mix of old/new voice/data wiring in your building
- If you have other physical servers / and equipment on premise
In summary, if you meet a few of the criteria above and have the money to spend (or the access to capital) and you aren’t opposed to housing a server on site, you can get good long-term value from the purchase of an On-Premise phone system.