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On-Premise vs. Cloud Services — the Pros and Cons

If you’re looking into a new VoIP phone system, you’ve probably come across a lot of jargon you didn’t understand. Don’t worry — we’re here to clear everything up and ensure you get exactly the system your hotel needs. One of the biggest distinctions between systems is “on-premise” versus “managed” or “cloud” service. Each system has its own pros and cons. Here’s what to think about.

What’s the Difference Between On-Premise and Cloud?

The fundamental difference between these two systems is the way that your technology and hotel communications are arranged. A cloud or managed service provider (MSP) like Phonesuite is a third party that installs your tech infrastructure, end-user systems, servers, and other hardware like handsets. You pay the MSP a monthly fee rather than an upfront cost, and in return, the MSP keeps track of the day-to-day monitoring of all the hardware and software they’ve implemented.

If you opt for an on-premise hosting arrangement instead, you’ll purchase the hardware and infrastructure outright and keep it all on the premises of your hotel. Some industries that deal with particularly sensitive information, like healthcare and financial services, are legally required to host their servers on-site so that no one can illicitly gain access to them.

The Pros and Cons of On-Premise Hosting

The biggest benefit of hosting your hotel’s communication infrastructure on-premise is security. When user data, call logs, and other sensitive information is hosted locally, it’s less susceptible to security breaches. Given the scale of some of the major security failures we’ve seen in recent years, like in 2018, when Marriott International revealed that the personal data of over 500 million guests had been exposed, privacy is a significant concern for some clients.

In some cases, on-premise hosting can also create a more reliable internal network. If your building loses its internet connection, as can happen on rare occasions, cloud systems might experience service disruptions due to loss of connection with the MSP.

The downside of on-premise hosting is the cost. Customers who opt for an on-premise system are responsible for the significant cost of hardware, infrastructure, IT staff, updates, and maintenance for their PBX system, which can be a significant upfront and ongoing investment.

Customers will also have to upgrade their systems themselves every few years, adding to their communications cost as they attempt to keep up with the continually evolving landscape of phone technology and regulatory changes.

The Pros and Cons of Cloud Services

For most modern hoteliers, cloud services through an MSP are the clear solution to their communication needs. Phonesuite’s solution is called Managed VOICE and combines the most useful features of both on-premise and cloud systems into one service package that can be tailored to your individual hotel’s needs.

One of the most significant advantages of Phonesuite’s system is the savings on cost. Rather than paying an exorbitant installation fee, you’ll pay a much lower capital expense up front, followed by a very competitive operating expense.

You’ll also enjoy the advantage of increased flexibility. The Phonesuite system uses an open-architecture and evergreen software, so it can be integrated into the existing phone system of any hotel or replace it altogether. Phonesuite also offers lifetime hardware and software upgrades for the length of your contract, so you won’t need to spend significant capital to keep up with the evolving needs of your hotel.

Both Phonesuite’s hybrid on-premise-based accounts and our fully Phonesuite-hosted systems come with network load balancing, analog backups, 4G failover, and POTS line failover. In addition, the on-site hardware required for both systems is the same, offering you the option of switching between an on-premise and cloud-based solution as you see fit.

Finally, Phonesuite offers a rapid call center, on-site support, and 24/7 monitoring — any technical issues that arise will be caught, addressed, and remedied as quickly as possible. We offer free moves, adds, and changes (MAC), free daily encrypted backups of all your systems and data, and a no-questions-asked warranty.

Talk to Phonesuite Today

If you’re ready to upgrade your hotel’s phone system to a solution that’s flexible, versatile, and affordable, get in touch with Phonesuite today. We’ll build a quote that matches the exact specifications of your hotel so you can make an informed decision.


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