Cloud vs. On-Premises: Understanding the Key Differences

A Primer for Your PBX Replacement

Side-by-Side Comparison

The only way to understand the advantages of one thing over another is to compare them side-by-side. To see how Fuze’s cloud communications delivery model compares to traditional premises-based systems, we pulled together data from both sides. There are a number of competing priorities in enterprises these days. Every company is doing whatever they can to increase sales and shareholder value. But how do you do that? It’s fairly simple: you need to make better business decisions and have the ability to provide more responsive customer service that scales with the growth of your organization. The main ingredient in both of those is better communication. And consolidating communications in the cloud with Fuze, rather than sticking with decentralized legacy on-premises equipment is the first step in that direction.

Questions to Consider

  • Do you prefer all-inclusive subscription fees or expensive on-premises equipment, annual licensing fees, upgrade fees, and maintenance?
  • Do you want to reduce or completely eliminate capital-intensive upfront and ongoing hardware costs?
  • Do you want to lower IT support and staffing costs or free your team up to manage higher priority initiatives?
  • Do you want to eliminate costly, disruptive, and time-consuming upgrades?
  • Do you want to eliminate redundant software costs?
  • Do you want to consolidate video conferencing and telephony into one bill?
  • Do you want to meet the scaling demands of your company such as employee growth or opening a new office location?
  • Do you want to enable a remote and distributed workforce?
On-premises legacy PBX
Upfront costs
  • No initial capital expenditures other than IP phones and enabling network components
  • No or lower costs for employee resources, hardware and software maintenance
  • Additional costs for internal management, software, and hardware upgrades
  • High initial capital costs for on-site hardware and software
  • Additional costs for maintenance agreement
Upgrade flexibility
  • Seamless, automatic, and frequent updates included in subscription
  • Enhanced user acceptance and reduced or eliminated training costs due to frequency, transparency, and incremental nature of upgrades
  • Limited set of additional features available beyond those initially purchased
  • Additional functionality could add to system complexity
  • Additional functionality may not integrate well or could result in management issues
Feature set
  • Future-proof best-in-class PBX features and functionality
  • New features and functionality regularly introduced, including integration of third-party applications and upgrades
  • HD video conferencing included
  • New features/functionality limited to equipment capabilities and resource availability
  • New features may be offered, but at an additional cost
Implementation / deployment speed
  • Rapid deployment happens in just a few days or weeks
  • No need to acquire hardware, configure it, or test it
  • Simple to add new users, sites, locations as
  • Easy addition of new features and functionality
  • Ability to deploy incrementally or quickly depending on business needs
  • Typical installation takes many months, is costly and resource intensive
  • Additional equipment or multiple platforms likely needed to connect remote locations
User adoption
  • Familiar user interfaces speed adoption
  • Actionable usage reports readily highlight user adoption gaps, enabling quick resolution
  • Poor adoption rates despite end-user training and enhancement to user interfaces
  • Poor user adoption, especially in remote locations
  • Included in subscription
  • Potential for reductions in overall support costs, including head count and third-party support personnel
  • Redeploy IT support resources to other projects
  • Eliminate technical support costs
  • Greatly reduce help desk staff because of enhanced usability
  • Additional costs for maintenance agreements
  • Additional costs for internal staff, third-party support contracts, and consulting
  • Highly secure and protected service implementation
  • Advanced security technology that utilizes industry best practices
  • Secure connectivity options via pointto-point, MPLS, or VPN
  • Full monitoring of service delivery
  • QoS service guarantees
  • Owner (that’s you) assumes all responsibilities and potential risks

Fuze is a global cloud communications provider for the enterprise. Our intuitive unified communications and contact center platform enables seamless transition between calling, meeting, chatting, and sharing powered by the industry-leading cloud voice for the enterprise. Fuze empowers the digital and distributed workforce to communicate anywhere, anytime, and across any device. Founded in 2006, Fuze is headquartered in Boston, MA with offices around the world.

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Learn more about moving your PBX to the cloud