If you are looking for a new phone system, it can be difficult to choose the right phone system for your organization with all the different options on the market.
Knowing the pros and cons of an on-premise phone system will allow you to make a better decision on which phone system is best for your organization.
Coeo has delivered thousands of different phone systems and knows how important a good phone system is to an organization.
We want to give you information on the pros and cons of an on-premise phone system so you can determine if an on-premise phone system is right for your organization.
By the end of this article, you will know what an on-premise phone system is and the pros and cons of the system.
What is an on-premise phone system?
An on-premise phone system is a physical phone system that resides at the customer’s location and is owned by the customer.
This also means that the customer is responsible for all upgrades and maintenance required to operate the phone system.
Because an on-premise phone system is set up at your company’s physical location, the data server for the phone system resides in your office.
This means your IT team will have to maintain, manage and update your on-premise phone service when necessary. This can benefit your company because your IT team will have more knowledge of your network than a phone service provider.
This allows your company to control the phone system and personalize it depending on your company’s needs.
On the other hand, if your organization does not have an IT team or has an IT team that is overwhelmed with other projects, it may be difficult for your organization to manage and maintain the on-premise phone system.
Not only does this include the management and maintenance of the server but also any software and hardware that is part of your on-premise phone system.
Data backups, disaster recovery, and any other issues that arise are the responsibility of your organization.
Pros and cons of an on-premise phone system
Understanding the pros and cons of an on-premise phone system will help you determine if the service is right for your organization. The pros and cons of an on-premise phone system include:
Pros of an on-premise phone system
There are a couple of advantages an on-premise phone system can bring to an organization. These advantages include control and security:
Control
An on-premise phone system is a phone system that is set up at your company’s physical location. This means that the data server of the phone system resides in your office.
While this means more work for your IT team, your team understands your network better than a managed service provider.
This allows your company to control your phone system and personalize it to your company’s needs.
However, with an on-premise phone system, your company is responsible for managing and maintaining your phone system and providing updates.
Not only does this include management and maintenance of the server but also any software and hardware that is part of your on-premise phone system.
Data backups, disaster recovery, and any other issues that arise are the responsibility of your organization.
Security
Because your phone system is connected over a physical line within your organization’s location, it has better security.
A cloud phone system can be vulnerable to malicious software because it is connected through the internet, a public network.
An on-premise phone system is connected physically to your company’s location making it much harder for a hacker to attack your organization’s on-premise phone system.
Cons of an on-premise phone system
For every service or product on the market, where there are pros, there are also cons. The cons of an on-premise phone system include:
Higher initial cost
One of the disadvantages of having an on-premise phone system is the high initial cost of the service.
Because on-premise phone systems require more hardware and software than some other services on the market, it can be more costly than those services.
Additionally, aside from the cost of the hardware, you also have to accommodate room for the hardware. You must figure out a place where hardware can be stored and where it will not be damaged.
Requires your own IT staff
With an on-premise phone system, your system must be monitored, managed, and maintained by an IT team.
This can be a disadvantage if you do not already have an IT team or if your IT team is overwhelmed with other projects.
Little to no flexibility
An on-premise phone system, because of its physical connection, will not be as flexible as some other phone systems on the market.
Because there are physical hardware lines that phones must be connected to, you are limited in where you can make and receive calls.
This can make it difficult, especially in today’s work environment, where remote work is quite common.
If you have an on-premise phone system, it will make it much more difficult to make or receive calls from a different environment other than your work desk at your work location.
Therefore, using an on-premise phone system makes remote work challenging.
Limited scalability
Scalability can be important if your organization is growing or downsizing. With an on-premise phone system, the ability to scale up and down is limited because of the physical lines phones use for the service.
It can be hard to add and take away phones when they are connected to physical wires. It is also expensive to continue to install the physical hardware especially when you are required to add 20 lines at a time.
This can be an inconvenience and an added expense to your organization. For example, you may only need to add one or two phones but must install enough hardware for 20 phones.
Next steps to purchasing a new calling service
Now you know what an on-premise phone system is and the pros and cons of the service. This information will help you evaluate alternatives when selecting a new calling service.
If you are struggling with a poor-performing phone service, looking for a new one can be frustrating with the number of options on the market.
Knowing what an on-premise phone system is and the pros and cons will help you narrow your search and allow you to determine if an on-premise phone system is right for your organization.
Coeo has helped thousands of customers with their calling service. We want to give you information on the pros and cons of an on-premise phone system to help you determine if it is right for your organization.
If you would like to speak with our team to talk about on-premise phone systems or ask any questions you may have you can schedule an appointment. 
Now you know the pros and cons of on-premise phone systems. Read this article below to learn the differences between on-premise and cloud phone solutions so you can determine which is best for your organization.
