On-Premise vs. Cloud Hosted: What Does Avaya’s Bankruptcy Mean for the Future of Business Communications

This January, telecommunications company Avaya filed for Chapter 11 bankruptcy after facing challenges that arose from adapting to cloud technology just a bit too late. Though the company does provide software and services and made about 75 percent of their revenue in 2016 from these solutions, their capital structure was based on an older, hardware-focused business model that no longer reflected industry trends.

Avaya’s decision has left many in the industry wondering if the cloud has won or if there is still a place for on-premise telecom solutions in the modern marketplace. Below, we’ll discuss what Avaya’s challenges say about cloud-hosted solutions as well as where on-premise solutions fit in today.

What Avaya’s Situation Says About the Cloud

The events which lead to Avaya’s recent bankruptcy decision have brought to light an important challenge for many telecom businesses today. As the industry shifts toward more software and service-based business models, those companies with capital structures based on hardware solutions will need to adapt to the changing and growing needs of modern companies if they want to stay in business.

The marketplace is becoming increasingly more digital, and more businesses are forgoing physical locations in favor of online business platforms with remote employees. Not to mention, more and more businesses are developing a global outlook which may require more flexible communication solutions.

This is not to say that there is no place for on-premise telecom solutions. However, contemporary companies are changing the way they do business, and telecom solution providers need to adjust their structure to accommodate for new communication challenges.

On-Premise vs. Cloud Hosted: Is Cloud the Future?

Though Avaya’s challenges may suggest that cloud is the clear winner in the battle between on-premise systems vs. cloud-hosted solutions, the truth is that the “winning” solution will depend on the individual needs of your business. Both types of solutions have their pros and cons, and the key to choosing the right solution for your company is carefully considering what each option can offer.

On-premise systems give you greater control over your telecom investment and only require a one-time capital outlay with occasional maintenance and upgrade costs. However, these systems also require a significant investment up front as well as in-house talent that can manage and maintain your resources. Though this works for many larger businesses, it may not be the most effective solution for small or growing companies.

On the other hand, cloud-based services require only minimal up-front costs and offer you the ability to be up and running quickly. Cloud-hosted solutions are also very flexible and scalable, and they allow your company access to the latest functionality. This is a great option for businesses who have many remote employees or those who may not have the resources in-house to manage their system. However, the total cost of ownership over time may be more than on-premise solutions, and, in some cases, there are limited customization options.

Which is Right for Your Business?

When looking for the right telecom solutions for your business, consider both your current, near-term, and future needs. How many employees do you have, and how many of them work remotely? What is your growth strategy? You will also want to look at what existing telecom assets you have, what your network capacity is, and what your disaster plan or security measures look like. In addition, consider what your in-house expertise is and what resources you have available.

Do you need help finding the right business communication solutions for your company? That’s what we’re here for. Give us a call today to learn more about which telecom solutions might be right for your organization’s biggest communication challenges: (888) 323-0557.

UCedge, Unified Communications Solutions from Toshiba.

UCedge, Unified Communication

If you are used to Unified Communication applications, you would understand it needs a bit more resources than just a telephone end device. In order to use all the capabilities of UC, you would need to manage files, multiple applications, and maybe even videos. Till now this meant being tied to your desk.

Now, when you are using Toshiba’s on-premise or cloud based phone systems, you are no longer tied to your desk. With a common user interface across platforms, you can access all your unified communication applications from a tablet, a laptop, or even your smart phone. UCedge application is available on Windows, iOS, and Android, making it literally universal.

More details on UCedge and it utility are available here.

About One Call Communications

One Call Communications is a leading provider of phone systems in North Carolina. We serve thousands of clients across Greenville, Rocky Mt., Goldsboro, Smithfield, & Wilson. We sell, install, and service business telephone equipment, voicemail and, voice and data network cabling. We install and service premium quality products from Toshiba Telecom. We serve both commercial and industrial clients.

Call us today for your networking and communication requirements.

 

Comparing Premises-based and Cloud Phone Systems

Premise vs Cloud

The decision to choose between premise-based and cloud phone systems can turn out to be really challenging because it can have long term impact on your business communication. While opting for VoIP or Voice over Internet Protocol, you will have to analyze and choose the system that best meets your business needs.

A premises-based solution is one where the hardware and other equipment are installed and maintained at your office site. On the other hand, if you opt for a cloud phone system, the phones in your office will be connected using the Internet to the provider that operates and maintains all the telephony equipment and cloud data center. You need to make an informed choice and in order to do that you will have to make yourself aware of the benefits as well as the challenges associated with both the systems.

Here is a brief comparison of both the systems:

Comparison of the Features

Many hosted or cloud telephone systems may not offer all the features that you would find in a premise-based system. In case a cloud telephone solution does not offer critical features like IVRs, queues and conferencing or charge additionally for these, then it is not wise to opt for such a solution. However, having said all that, there are several cloud telephone solutions that encompass all the necessary communication features that an organization would require. Cloud telephone solutions offer a wide range of features that can make business communication really attractive.

Upfront Cost

The cloud-based or hosted solutions come with low upfront cost and you will have to pay only a nominal monthly fee based on your usage. However, when you opt for a premise-based solution then the upfront costs are high as you will have to buy all the necessary equipment like servers, which are pretty expensive. However, you will benefit in the long run as the server and other equipment costs can prove to be a worthy investment. In case you are operating a small business with a handful of employees (5 to 15) then paying the monthly usage fee is more justified. There are also bigger organizations that opt for the cloud based VoIP because of the advanced telephony features they get.

TCO or Total Cost of Ownership

The TCO for a cloud based system is quite low because your hosting provider will take care of the server configuration as well as maintenance. You will be making big savings because you will never have to buy the hardware equipment or hire a dedicated team to maintain the server and related systems. This is a big advantage you get when you opt for the cloud telephony over a premise-based solution.

Existing Infrastructure

If you are using legacy systems like TDM to connect to the PSTN network then it can be taxing on the company’s pocket. At the same time, upgrading your technology infrastructure for using VoIP can be an expensive move too. However, when you switch to the hosted PBX then you can realize substantial savings. In case you want an idea about the amount of money you can save by moving to the cloud then you can consult with One Call Communications and we will analyze and give you the exact figures. For using your old PSTN system, it is best to opt for a premise-based solution.

Scalability

For the businesses on the path of growth, scalability is an important factor to consider while making a switch to hosted or premise-based solutions. For the premise-based solution, you will have to invest a lot of money for expanding your business communication system. However, scalability is much easier and less-expensive when you opt for the cloud telephony. You will need to just pay more as you grow or keep adding users to your communication system.

About One Call Communications

One Call Communications is a leading provider of phone systems in North Carolina. We serve thousands of clients across Greenville, Rocky Mt., Goldsboro, Smithfield, & Wilson. We sell, install, and service business telephone equipment, voicemail and, voice and data network cabling. We install and service premium quality products from Toshiba Telecom. We serve both commercial and industrial clients.

Call us today for your networking and communication requirements.