The primary distinction between a cloud-based and a local phone system is who owns and manages the equipment. If you choose an on-premise solution, you will be responsible for purchasing and maintaining the equipment. The VoIP provider, on the other hand, owns and maintains the cloud PBX equipment via a cloud-based system, and you pay a basic monthly cost. Purchasing equipment often requires a considerable investment and is thus costly and, simply, unneeded for the majority of enterprises.
If you purchase a PBX system for your workplace, you must consider disaster recovery and what would happen if the building’s electricity is turned off or, worse, if there is a fire. With a hosted PBX, your employees can pick up their phones and connect them to any internet-connected device to continue working. As some organisations discovered during Covid, this flexibility is quite advantageous. With on-premise phone services, you’ll need to consider battery backups for your servers and switches, as well as alternate call routing in the event that the facility becomes unusable. This can cause things to become rather complicated.