– Hey, this is Tom with Nextiva. In this video, we’re gonna compare the differences between an on-premise call center and a cloud call center.
An on-premise call center uses traditional, physical equipment installed and functioning within your building, including desk phones and servers.
The desk phones are connected to a server through a device called a PBX system. A cloud-based call center only requires software or an app to get started because the system functions through the internet.
This is known as a cloud-hosted PBX.
Calls are made through a technology called voice over internet protocol, or VoIP for short. With a cloud-based system, your agents will be able to make and receive calls with any device that has a connection to the internet, including personal smartphones, laptops, or tablets.
Because a PBX requires a provider to come to your place of work and install the equipment, the setup of an on-premise PBX system is usually much higher and requires regular maintenance and upgrades to keep it up and running.
Not to mention, charges can accumulate with the installation time, the cost of the equipment itself, and the maintenance of upkeep.
However, a cloud-based call center is virtual. So the setup cost is up to 60% less than a typical PBX set up and requires no upkeep.
For a cloud setup, all you need to do is download a mobile app for your agent’s device, or launch the service from your computer. As your business grows, the number of customers calling your support line will increase.
You’ll eventually need to hire new customer support agents to help you deal with the growing number of calls.
An on-premise PBX isn’t built for the future of work, because there are limited options for remote work and the cost of ownership exponentially increases as your team grows. However, a cloud-based contact center solution grows with your business.
No additional equipment is required when onboarding a new employee, and there’s no need to upgrade your on-premise system. Just simply add the agent to your online account and they’re good to start making calls. The number of remote workforces is growing rapidly.
With this, on-premise PBX is significantly limited for remote teams. Since the phones are tied to the office, your agents are confined to that space as well.
However, cloud-based call center software allows them to work from anywhere because working from anywhere is built-in by default.
With the cloud, all your remote agents need is an internet connection and an internet-enabled device to make and receive calls. Because everything is online, all your call information is already stored on your device.
This data can be integrated with other tools such as your CRM. Plus virtual cost centers have call monitoring features.
You can record conversations your agents are having with customers, and can even replay specific customer interactions which are awesome for training new employees.
If you’re ready to learn more about what sets a cloud-based phone system apart from an on-premise PBX system, check out our blog posts linked in the description below.
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Again, this is Tom with Nextiva. We’ll see you next time.
