Chances are your business is currently using a traditional phone system. Further, you may wonder whether your business has the technological infrastructure to transition to more modern solutions.
If you are considering updating or upgrading your business phone systems, you need to be well-versed in the available systems.
An On-Premise Phone System and Your Business
Whether your phone system is through the cloud or on-premise, knowing the best way to ensure robust and efficient communication between your employees and customers is essential.
Here's a breakdown of the top 10 things about on-premise phone systems.
1. What is an on-premise phone system?
An on-premise phone system is a closed-off network of phones within the business with all equipment on-site. All wiring and hardware, including the PBX server, are in your business premises.
Traditional on-premise phone systems can either route through traditional copper lines or be Voice over Internet Protocol (VoIP) enabled.
With the on-premise telephone systems, your business can manage the system or contract a managed service provider. The latter would be required to offer support and maintenance.
2. What are the differences between on-premise and cloud phone systems?
A cloud phone system is a virtual system hosted on the cloud. This phone system doesn't require equipment on-site except for VoIP phones—a single third party hosts all the hardware and outbound lines. Your business then pays a monthly fee for the hosting services.
On the other hand, an on-premise phone system is a closed-off network of phones within your business with all the equipment within the company.
3. What equipment is needed to run an on-premise phone system?
As mentioned, the traditional on-premise phone system ran over analog phone lines or ISDNs. However, with advancements, on-premise phone systems are now IP-enabled, which means they are 100% NBN-ready.
At their tenet, on-premise phone systems are made up of two main components. Think of the first as the system's brain, which is the box erected at the office and connects all the phones. The other components are the handsets themselves.
4. How are on-premise phone systems managed?
Seeing as what could best be described as the brain of the system is on-site, you are responsible for the maintenance and upkeep of your on-premise phone system.
If you want to make changes to your programming, you can have a remote technician phone in the changes, but you will still require a skilled IT professional, like AIS, or a phone technician on-site to make the changes to the system.
5. How do you know an on-premise phone system is right for your business?
Your business needs are supposed to guide you on which phone system is best. If you need absolute control of your phone system and seek more customization of its integration with specialized applications, then an on-premise phone system is best.
Other than your business needs, there are additional considerations to be made.
The first is financing. If you have the upfront investment, then an on-premise solution could suffice. You've also got to consider whether you have the necessary resources.
For instance, do you have the tools to ensure top-level security? Further, do you have the in-house internal resources to manage the phone system?
Finally, you have to consider your technological capabilities. Specifically, you have to question whether you have access to the latest functionality and compatibility updates, what features you might need to add, and their recurrent fees.
6. What are the benefits of on-premise phone systems?
Keeping your phone system on-site gives you more control, which in turn means greater flexibility, as you can choose between the available network carriers.
Moreover, on-premise phone systems offer greater mobility. Several mobile applications are available for a small number of phone systems. Granted, these applications have limited functionality, but they go a long way toward providing the business with greater mobility.
Further, you can keep network carriers the same by design when purchasing or upgrading to a new on-site phone system. This means more straightforward setups.
Customer service is another benefit of on-premise phone systems. If well-designed, these systems allow your business to offer a more robust customer-facing service experience.
In hindsight, on-premise phone systems deliver better ROI. Although the up-front costs are significant, the system lasts longer and is overall a worthwhile investment.
7. What are the challenges with on-premise phone systems?
On-premise installation is often expensive, especially since the hardware must be purchased or leased. On average, a small company will incur between $800 and $1000 per employee for an on-premise phone system installation.
Note that the larger the organization, the more complex the installation, which means that the initial costs might reach hundreds of thousands of dollars.
Further, on-premise phone systems do not provide users with remote access. Their networks are designed to function only where the equipment and wiring are located. This can be particularly challenging in today's work ecosystem, where much of the workforce works remotely.
Additionally, scalability can be tricky with on-premise phone systems. Even with the most minor expansion, specialized PBX techs will be required. Further, regardless of the scope of expansion, the cost can quickly plummet.
Finally, while on-premise phone systems facilitate better customer service, adjustment to call routing can be significantly slower than a hosted phone system.
8. What features are a must-have for your on-premise phone system?
Most of the on-premise phone systems available in the market are feature-rich. These can transform your communication, make your business sound more professional, and operate more efficiently.
Most popular features are already built into the hardware as a standard inclusion. However, there are additional features that you might consider adding. These include:
- Transferring calls
- Hold functionality
- Voicemail to email
- Auto attendant
- Conference calls
- Cordless phone compatibility
- User-friendly handsets
9. Do on-premise phone systems require training and certification?
Whichever on-premise phone system you purchase, you will need employees who can deploy and manage it. These employees need to be certified in the system's hardware and software.
This will require organizing training programs at the initial rollout. Additionally, you will be required to carry out ongoing training to ensure proper system maintenance. This forms part of the hidden costs of your office phone system.
10. Can you combine on-premise and cloud phone systems for added flexibility?
Considering the current work environment, consider a hybrid model that combines on-site phone and cloud systems. This provides added flexibility and works best for businesses with multiple force locations.
The Final Say: What to Know About On-Premise Phone Systems
On-premise phone systems are powerful business tools with significantly better ROI than the cloud alternative. The overall cost over the system's lifetime makes it an even better solution for businesses looking to have a phone system for an extended period. Besides, an on-premise solution should be significantly more secure and give you more control.
At AIS, we step in to help you manage your communications better. We work with your communications team to ensure better phone system management. If you want more information on on-premise phone systems and how you can leverage these better, contact us today!
