Cloud vs On-Premise Call Centers



Cloud vs On-Premise Call Centers differences and benefits for businesses will be discussed in this blog. Let us start with a slight introduction to Cloud and On-Premise Call centers. A cloud call center housed on a corporate server serves as the nerve center, coordinating all customer interactions. Because the center is hosted in the cloud, it may interact with customers through phone, email, social media, and the internet. Customers must have adequate bandwidth to support Internet connections for cloud contact center solutions. Companies choose to modernize their call centers by using cloud-based solutions as customers increasingly contact them through digital means.

On-site call centers are more traditional and hardware-based. Every few years, on-site contact centers need costly upgrades. With dedicated communications servers and an on-site contact center, your communication equipment, software, and infrastructure remain on-site. As a result, your IT department is responsible for installing, maintaining, and supporting everything from servers to headsets, as well as integration.

Cloud vs On-Premise Call Centers: Differences & Benefits for Businesses

Typically, organizations compare the cloud and call centers based on a few key metrics. Below, we outline some of the most often cited advantages and characteristics of each contact center type:


Establishing an on-site contact center may take many months, as companies must purchase equipment and licenses, configure the infrastructure, and find the appropriate software. On the other hand, creating cloud-based call centers entails installing pre-configured software on a computer.


Businesses must determine if they want equity or operating costs when deciding between an on-premises and a cloud contact center. On-site contact centers need capital expenses for equipment, license, and server hosting. Additionally, they need on-site installation every 5-10 years as hardware ages and technology advances. In comparison, cloud contact centers do not need large upfront hardware or infrastructure investment, as long as an adequate Internet connection with sufficient bandwidth is available. A monthly membership fee is included in the cost of the service.


On-site contact centers provide standard, expected features like transfers, holding, waiting, conferencing, and call logging. Although Cloud Call Centers provide the same services as traditional call centers, they use modern technology to deliver live call monitoring, intelligent IVR, and click-to-call features.

Incorporation: Connecting the on-site contact center to other services is difficult but possible, mainly via licensing and installation. Businesses with robust IT departments may streamline integration and execution, resulting in total cost savings.

Reliability: On-premises contact centers may use more dependable technologies to reduce call delays and improve call quality. However, an on-site contact center’s call quality is only as good as its technology and hardware. On the other hand, Cloud contact centers are excellent when businesses have robust and reliable Internet connections.

Cloud vs On-Premise Call Centers: Differences

Initial and continuing costs

The costs associated with each contact center are critical factors to consider when creating your call center.

Generally, conventional on-site telephone systems need a higher initial investment. You must arrange for the supplier to come to your place of business and install the equipment. Charges may rise following the length of the installation and the equipment’s cost.

A cloud-based contact center may help you save up to 60% on costs because a cloud-based PBX hosting service is virtual. You do not need to hire an engineer to install any device or charge high costs for desk telephones.

Contact your cloud-based provider and request that they digitally configure the equipment you already own.

The most beautiful thing? The cost savings associated with a cloud-based solution are limitless. Virtual telephone numbers associated with your telephone center reduce the cost of contacting your consumers. No more international skyscrapers; they communicate with you through an internet connection.

More: Continue reading: What is a SaaS contact center? (As well as why you want it)


We already know that a contact center on-site requires physical equipment. You will need to contact your provider and request installation.

This is a tricky situation in and of itself. Not only will you need to agree on an installation date (which may be weeks away), but you will also need to access your workplace to make the necessary adjustments. This may take a whole day to complete the installation.

Nonetheless, call center software is available online. You do not require an engineer to attend your office; they may set up your virtual contact center online. All you need to do is install a mobile app on your agent’s smartphone or configure the service via your browser.

This is a helpful list of dosages; however, it should not be used for establishing your cloud-based contact center.

Maintenance and upkeep

Physical telephone networks need maintenance. You may unintentionally have a cable break or a server overheat. Additionally, you will need to upgrade the equipment every few years; telephone technology is deteriorating.

Each of these problems needs repair, resulting in an additional costly trip that disrupts your workday. Each trip may consume more than 23 minutes of your agents’ time. They require an inordinate amount of time to get their bearings after an interruption.

This is not a problem with a cloud-based phone system since they are not necessarily required to have a desk system. Alternatively, you may use softphones – software that is loaded on your smartphone.

If the software in your virtual contact center ceases to work correctly, contact your service provider. You may be able to resolve the problem without visiting your place of employment.


As your business grows, the number of customers that call your support line will increase. You will ultimately recruit more customer service representatives to help you in handling such calls.

Isn’t that the sole issue? Scaling an on-site telephone system is not simple. Each time you install a new desk phone, you will incur extra costs. A wire from another callout engineer to the on-site server is required to connect the desk phone. Additionally, integrating your new desk phone with your call-routing system may take many hours.

Growing a cloud-based contact center system is much easier as it grows in proportion to its size. When you hire a new employee, you do not need any more hardware. After configuring your current work PC with call routing, you may receive calls from it.

Advantages of Cloud Call Centers

Cloud contact centers appeal to businesses because they can be installed in a matter of minutes. Additionally, cloud contact centers do not need upfront capital expenditure, allowing companies to use cutting-edge capabilities to convert legacy call centers to modernized call centers.

  • Reduce costs and increase return on investment (ROE)
  • Establish a fully functional, state-of-the-art multichannel contact center
  • Enhance customer experience
  • Ease of deployment
  • Empower employees
  • Reduce ongoing costs
  • Optimize agent efficiency and productivity
  • Call center management
  • Increase scalability and flexibility
  • Advanced functionality and capabilities

The Advantages of on-Premise Call Centers

Numerous companies anticipate that cloud contact centers will be the least expensive option. However, a high-quality on-premise solution with an upfront cost may be invested in, paid off, and regularly utilized over time without incurring the ongoing price of a cloud solution. Additionally, some companies choose on-site contact centers since they may be customized to specific needs more precisely than cloud call centers. Businesses that use on-site contact center solutions find it easier to train employees since the systems are more customized to their particular needs.

  • Other benefits in the contact center industry include the following:
  • Purchase just required equipment and systems
  • Payment of costs in advance rather than regularly
  • Safe and secure storage of sensitive data in-house
  • maximum functional control
  • Reduced reliability and safekeeping problems

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