The modern world is moving towards cloud-based phone systems, but it’s not the only option. There are many reasons why you might want to go with an on-premise phone system instead of a cloud-based one.

Many people believe that using a cloud-based phone system is better than an on-premise setup for small businesses because it offers more features and capabilities at a lower cost. This blog will explore the differences between these two systems and how they relate to the National Broadband Network (NBN), so you can make your mind up about which is best for your small business.

On-premise phone systems

On-premise phone systems are the more traditional approach.

They use an existing phone line and can be installed in the office so you can make and receive voice calls.

The system consists of one or more phones connected to a central device called a PBX (Private Branch Exchange). This type of setup provides you with many benefits including being able to monitor all activity through internal software and better security for your call records due to it not being stored on a third-party platform.

However, the downsides of an on-premise phone system are that it can be costly to set up and maintain. This can be particularly impactful for small businesses. Another downside is that the business will have a limited amount of bandwidth, which may impact productivity.

Cloud-based phone systems

A cloud-based phone system has advantages over an on-premise setup, such as being able to access your communications from anywhere with internet access through a web browser or app. However, this requires you to rely more heavily on broadband speeds.

In addition, there are no upfront costs associated with this type of system so you only pay for your usage.

The disadvantages of cloud-based phone systems are that you may need to share your number with other customers, and if the provider goes out of business or stops offering service for any reason, your phone system will be down.

Phone systems and the NBN

With the introduction of the NBN across Australia, cloud-based phone systems are becoming increasingly popular due to broadband becoming widely available in most areas.

The NBN has some major advantages, especially for businesses with a larger network. For example, it offers greater reliability and faster broadband speeds, meaning you can more easily rely on it for telecommunications needs.

For small businesses, the reliability and lower costs of a cloud-based system, especially in combination with the roll-out of the NBN, can make it the better option. However, if you are not sure about committing to an NBN connection for your office, you may want to think about an on-premise system that doesn’t rely on a broadband connection at all.

If you are interested in learning more about phone systems, read our previous blog on Why business phone systems are a must in today’s modern marketplace.  


Phone system solutions

Red Centre Technology Partners are specialists in both cloud-based and on-premise phone systems for businesses. We provide reliable solutions that respond to the unique needs of your organisation. For more information and to discuss your requirements, please contact us.