Cloud VoIP system vs On-Site VoIP PBX System

Once  the decision of trading the traditional phone system with a VoIP variant has been made, comes the next step – to choose between  Cloud phone system or an on-site VoIP system.Both these systems come with many advantages and disadvantages, making it difficult to choose one phone type over the other.Business growth plans, company needs, cost and  in-house technology expertise are some of the factors that impact’s the decision of choosing a perfect system for each business type.

To aid the decision making process, lets take a look at different components and Virtual phone system comparisons with on-site VoIP phone systems



The key variation between the two phone options is that, the cloud VOIP system  is hosted over the internet and does not require any hardware or equipment to set-up.Whereas, an on-site PBX VoIP or installed VoIP system operates within your business infrastructure and connects to your phone service provider network. The inbound IT staff is accountable for the installation of the VoIP solutions and upgrading any routers that might be needed  to support the phone system.

Upfront Cost

Cloud(virtual) VOIP system is characterized by low upfront cost, zero investment for hardware, no requirement for IT staff .Cloud  definitely serves as  an ideal platform for every start-ups and small to mid size businesses offering a low  affordable total cost of ownership (TCO ). Conversely, employing an on-site PBX VoIP system requires a heavy initial investment and above that requires hiring IT staff to manage, maintain and configure servers as needed.

Avoid PBX Equipment Obsolescence

Sooner or later, onsite VoIP systems are at a risk of becoming obsolete. While cloud  phone system(VOIP), faces no such threat. Business owners do not need to worry about PBX system obsolescence, since no hardware equipment is needed in said system.

Maintenance and Management

To manage and maintain an on-site VOIP phone system, business certainly requires in-house resources and IT staff, which although offers great degree of control over the features for a more personalized company VoIP system.However, with limited time, money and dynamic needs a growing business, delegating the cloud phone system provider to manage and maintain,  is the best option. Management of the multilevel phone infrastructure is the part of the cloud contract.


With a cloud VoIP system, more phone lines can be added easily with few clicks on the web account management portal. Expanding the business, doesn’t require additional hardware or equipment.However, adding more phones to an on-site VoIP system can be both expensive and time consuming, since it involves securing more hardware, tech staff expertise and network equipment.

Contract and Long Term Commitment

Cloud services does not require signing  long-term contract in order to take the business phone needs to a virtual platform. With the availability of month-to-month contract, virtual phone system serves an ideal communication solutions for every growing business need. With this flexibility, companies can rapidly act in response to fresh opportunities and stay shoulder to shoulder with the ever-changing conditions in the market.

Aim high and choose a phone system that leads your business to pinnacle of  success.