Cloud Vs On-Premises Unified Communications: 4 Differences You Must Know
From instant messaging to video conferencing, unified communications (UC) is a marketing and business solution that integrates all forms of communication across your company.
Cloud Vs On-Premises Unified Communications: 4 Differences You Must Know
A unified communications solution is necessary for any forward-thinking business, but the difficulty is in choosing between cloud unified communications or on-premises unified communications, writes Elea Andrea Almazora, SEO content optimization manager, RingCentral.
Unless you are an expert at it, software testing is a daunting task, so you’re likely to just want somebody to tell you which software is best. We cannot tell you which option is best (as both have pros and cons, and it depends on your business) but we can explain the vital differences between on-premises and cloud UC to help you make an educated choice.
What Is Cloud Unified Communications?
If you use cloud UC, it means that your business is subscribing to a UC platform provided by an outside host. With cloud, you only ever pay for what you need and all members of your workforce have access to the platform from anywhere in the world, as long as they have an internet connection.
In a world that is becoming increasingly more mobile, there are a myriad of cloud solutions out there for businesses to choose from. The right one depends on the business. A comparison of Glip vs. Microsoft shows you some of the key differences you can find between individual cloud computing software alternatives.

Source: CallCenter Hosting.
What Is On-Premises Unified Communications?
Alternatively, businesses can buy their own UC solutions up-front—as well as the hardware on which to run them—and own them outright. This is the traditional UC solution for businesses, as you do not need to rely on a good internet connection or the reliability of a cloud service provider.
The main problems with this form of UC are that you will need to pay up-front costs, which at the time will be more expensive than a monthly fee, and the software can only be accessed in strict locations—on your premises, which explains the name of the type of solution.
Learn More: Head in the Clouds: Unlocking the Missing Component for Call Centers’ Cloud Migration
What Are the Differences in Control?
Control can be an important factor for many business managers.
- With on-premise UC, you have complete control over every aspect of your communications. With skilled IT professionals as part of your workforce, you can set up and manage all of the hardware in-house.
- Security can be enhanced this way, too, with the addition of firewalls helping to reduce the risk of hacking.
- Although control in this sense may be decreased with cloud UC, cloud-hosted software means that any problems you have with your UC will be fixed by the providers.
- Downtime can be a big issue in businesses. There are ways to reduce downtime with cloud desktops, but downtime is ultimately a lot more likely with cloud computing.
- The graphic below shows how just the smallest decrease in uptime can lead to a significant amount of time lost for a business.

Source: TwinState Technologies
What Are the Differences in Price?
Prices of course come down to each specific software provider, but there is one general difference:
- Cloud UC is cheaper at the time, as monthly subscription fees are more affordable and there will be less required when it comes to setting up and implementation.
- However, over time on-premises UC may come out the cheaper option. With one up-front price (along with any costs required for repairs) you might be paying less than each monthly fee combined.
- What you can afford at the time may ultimately limit your options.
Learn More: Why Businesses are Adopting UC&C and How You Can Too
Which Is Easier To Maintain?
In a busy office, software maintenance can make or break a day, week, or financial year.
- As mentioned earlier, with on-premise UC, your business maintains all aspects of the solution, including both software and hardware. Hardware in itself is harder to maintain than software.
- Hardware is also more difficult and expensive to replace than software and it’s generally a lot more effort to keep things up to date and work efficiently.
- The software you are investing in by using cloud UC is all maintained by the host providers and is easily updated or fixed.
- It is worth pointing out that top project management tools will deploy cloud software to ease the maintenance of the workforce, calendar, and document collaboration.
How Do They Differ in Terms of Flexibility?
Flexibility will be a big deal to many members of your workforce with everybody having a preferred way of working.
- Flexibility is only really a feature of on-premises UC if you consider choosing each individual piece of software (VoIP, instant messaging, video conferencing) separately as a form of flexibility.
- For cloud UC, flexibility is possibly the biggest pull. Not only can your UC be accessed remotely, but it is easier to transfer calls, data, or information via a cloud service.
- Especially with cloud solutions, you can use unified communications to ease customer service friction.
- It is easier to transfer a call and more agents can be available (remote work!) with cloud solutions. This is useful for both outbound and inbound calls.
What Are Modern Inbound Call Centers?
So what are inbound call centers? Inbound call centers deal with calls from the customer to the business. A customer may call for a number of reasons, such as technical support or to renew or upgrade a product.
Over time, the concept of a call center is becoming more abstract (again, remote work!), which is where cloud UC might be the most efficient.
If inbound calls are a key part of your business, the VoIP call center solution you choose should use cloud computing services to improve your customer experience.
If you choose the right cloud provider, you could have everything you need on just one, easy to maintain platform.
Learn More: 6 Top Considerations as You Evolve Your Cloud Data Management Strategy
Summary
Unified communications are more important than ever for businesses right now. In an increasingly digital world, most people are turning to cloud computing for their workforce needs.
For many, this will be the right option, whether it be due to financial reasons or for the ability to work remotely.
But this doesn’t necessarily mean on-premises UC is gone for good. The security gained from controlling all of your business communication platforms can be vital for many businesses, especially those on a larger scale.
Ultimately, just as not all online stores choose the same platforms for ecommerce, the right UC choice for your company comes down to your own requirements. You need to think in terms of price, flexibility, maintenance, and control to find the ideal solution for you.
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