Choosing to implement a VoIP telephone system for your business is a smart move, one that can give your employees more flexibility while limiting expenses. However, many business owners are stumped when it comes to determining whether to use cloud-based deployment, an on-premise deployment option, or a hybrid system. Each of these options comes with its own benefits and drawbacks. In this blog post, we explore each of them in more detail, helping you understand how your deployment choice can impact your return on investment (ROI).

Cloud-Based Deployment

When you choose a cloud-based (hosted) VoIP system, your startup and installation costs are minimal, generally limited to buying a router and the headsets or handsets your staff will use. This also makes cloud-based solutions much faster to implement, limiting workers’ downtime. What’s more, businesses choosing this option only pay for the number of users in a given month, rather than paying the same flat fee month after month.

For small- and medium-sized businesses, the cloud-based model is attractive and can be the most cost-effective choice. From an ROI standpoint, many businesses see returns within just the first few months after implementing cloud-based VoIP, in the form of increased employee productivity and an improved customer experience.

In an on-the-go business environment in which many (if not most) employees use personal devices to conduct company business, one of the biggest selling points of cloud-based deployments is their mobile compatibility. The best of these seamlessly integrate employees’ mobile devices without requiring them to change their numbers or forgo personal use. Many have mobile apps that allow access to most or all features on the go. Some feature special internal text messaging capabilities (business SMS) and paging as well.  All at a reduced cost.

On-Premise Deployment

In contrast to a cloud-based system, a business installing an on-premise VoIP system will actually purchase and own all of the equipment needed to make the system function. Rather than relying on a cloud-based service provider to handle problems, your internal IT staff will handle installation and maintenance as required. Another benefit of this option is that businesses can customize their system to meet the company’s specific needs.

In general terms, employers with at least 100 users at the same site will achieve a greater ROI using an on-premise VoIP system instead of a cloud-based system. While there is more of an initial capital outlay and implementation takes longer than using a cloud-based system, ongoing expenses are usually lower. And because businesses that choose this model are not paying a fee for each user, the ROI goes up as more employees are added.

Hybrid VoIP

A third option for businesses with existing ISDN phone systems in place is to layer VoIP technology on top of existing landline telephone technology, giving companies the option of adding VoIP features without having to start from scratch.

Because businesses using a hybrid approach are not giving up their existing telephone systems, the VoIP expenses are an additional cost. ROI for hybrid systems will depend largely on the underlying business and how they are using the VoIP tools. In some cases, businesses test the waters with a hybrid system before moving to a cloud-based or on-premise VoIP option.

Norwell Technology Group Can Help You Evaluate Your Options

When you work with Norwell Technology Group, you don’t need to be an expert on VoIP; that’s our job. To learn more about the various options and to explore which option might help your business achieve the highest ROI, contact us online, or call us at (877) 277-9648 today.

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