Cloud vs premise based phone systems – Which one is right for me?

Cloud phone systems have recently sky rocketed in popularity. No hardware to maintain, no mandatory licensing or software upgrades to continually have to purchase, and a vast amount of mobility and calling features make a cloud based phone system very appealing.

So what’s the downside? Well, most business owners and managers say it’s the cost of the monthly service. Cloud phone systems are sold on a per seat, per month basis. The benefits are obvious, but is it worth the cost?

What many people may not initially realize is that premise based systems have their own inherent costs as illustrated in the chart below.  Often times, companies can virtually offset the monthly cost of cloud based phone systems after factoring in telecom costs, licensing costs, PBX maintenance costs, and software upgrades, all of which are present with premise based systems. Once factored in, you may be surprised to find out that 1 year, 3 year, 5 year, and 10 year total cost of ownership comparison is pretty darn close between the two systems.

Cloud phone systems are more convenient, there is no question about that. You don’t have to house and care for a server and it’s associated parts and pieces. All of that is taken care of by the cloud phone system provider. No matter how big or small your organization is, when you are ready to purchase a phone system, everyone should compare both types of systems to determine which one is best for their particular needs and budget.

If you are looking to replace or upgrade your phone system, give us a shout and we can talk you through the pros and cons of both systems to determine which one is right for you. Teoma Systems provides both premise based and cloud based phone systems and has been selling and servicing phone systems in Michigan for almost 30 years.

To get started, visit the IP Communications Page on our website, or reach a live Teoma representative by calling (248-614-6600) or email

Located in Troy and founded in 1993 Teoma Systems is a local leader in providing best in class IT solutions from industry leaders. All Teoma Systems solutions are engineered and supported by local Teoma Systems employees. Teoma’s technical staff averages over fifteen years of industry experience and ten years employment with Teoma. Attracting and retaining such a skilled staff requires providing associates an environment that rewards creativity, teamwork, and personal development.

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Since 1993, Teoma has been an IT Systems Integrator and Services firm specializing in the delivery and support of converged solutions across Systems, Networks and Applications. Our expertise spans both legacy and current technologies.

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