If you are looking to update communications, you may find that unified communications as a service (UCaaS) is treated almost as a default solution to your needs. Many companies are abandoning on-premise business phone systems in favor of a cloud-based solution. Benefits like cost-savings, flexibility, and scalability are driving the trend, but that doesn’t mean that those expected benefits are equally realized by every company, or that they outweigh the advantages of on-site phone systems.
In many cases, there are good reasons to continue using traditional, on-premise business phone systems:
While UCaaS and other cloud-based phone systems come with a low initial implementation cost, over time, the subscription price may be more expensive on a per-seat basis. When you consider the long-term, five-year cost associated with phone systems, it may become evident that the on-premise solution is more affordable.
Capital Investment Versus Operating Expenses
The cost savings associated with cloud-based communications is not applicable to every type of organization. For instance, a government agency that receives funding from a bond or a non-profit that receives a large grant may benefit from a capital investment approach to upgrading their phone systems. This allows for more control over keeping ongoing expenses low and timing those big investments when there is funding available, as well as an opportunity to utilize depreciation to offset the overall cost.
Many companies pursue a cloud-based communications solution based on the potential opportunity to integrate the technology with other applications. When you are evaluating solutions, you may find that the sales representative for cloud solutions may repeatedly respond to questions about integration by saying that each one is “simply” an application programming interface (API). It’s easy to say an integration is “just” an API, but in reality, it may be complicated and time-consuming.
A cloud-based solution offers frequent updates that tend to be more incremental, which is a major selling point in some cases. Many businesses value the promise of ongoing innovation. For some types of businesses, a more controlled and less-frequent bigger update is preferable. In a complex environment that can’t weather frequent outages, even if they are brief, on-premise phone systems may be preferred.
Security and Compliance
While it’s often the case that cloud-based communications providers have the ability to offer security coverage that is far superior to what any individual company could utilize, it may not be the case in every situation. In addition, there may be some concern that providers are targeted by hackers because of the potential access to multiple clients’ resources. Security policies vary between providers, and some companies may feel more comfortable keeping all communications in house.
There are many great reasons to consider a cloud-based communications solution, and in most cases, the agility and features of a UCaaS solution will bring measurable benefits. But there are still valid reasons for choosing on-premise business phone systems. Contact us at Proper Connections and let’s discuss the best next step for your communications technology.