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There are many advantages and some disadvantages for an organization in deploying a on premise VoIP phone system. The following are some key advantages to implementing a premise based phone system for your business.

On Premise VoIP Advantages

Ownership
Control
Call Quality
Up Time
Robust Application
Ownership

One of the key advantages to a premise based phone system is as simple as owning the system. In the short term, that may come with a higher capital expenditure cost. However, in the long run, you will almost certainly pay less for a premise-based phone system. Also with a premise-based system, you will have the opportunity to own it in full once it is paid off.

Control

With a premise based phone system, it will sit at the organization site, putting it under direct control of your personnel. This gives your team the opportunity to easily and quickly make basic administrative changes to your system on an as needed basis.

Call Quality

While not guaranteed, it is likely you will have superior call quality on a premise-based system.

Up Time

Premise based systems have historically provided extremely high up time rates. On a premise-based system, you would not need to be at the mercy of the quality of your Internet connection.

Robust Application

Premise based systems often have more robust and fully developed applications that can be utilized by the organization.

On Premise VoIP Disadvantages

Capital Expenditure
Network Infrastructure
Technical Expertise
Flexibility
Capital Expenditure

An on premise system will typically require a higher initial investment from your organization to implement. In addition, because it’s a capital expenditure it may require additional levels of budgeting and approvals for the capital outlay.

Network Infrastructure

Depending the type of premise based system you are looking to deploy, there is the possibility that you will spend more on the network infrastructure for a premise based system rather than a hosted solution.

Technical Expertise

If you have a strong internal IT staff with the bandwidth necessary to devote at least some time to learning and managing your new premise based system then you could be in great shape. However, if you do not have an IT staff in place or if your current staff already has their plate full, then the technical expertise that you would ideally like to have in house for an on premise system might be an issue.

Flexibility

Based on the initial cost as well as the installation involved, once you implement a premise based phone system you will likely feel the need to stay with that solution for an extended period of time to recoup the investment your organization has made. Thus, this type of solution can provide less flexibility.

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