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On-Premise vs Cloud Based Call Center: How Cloud Contact Centers Win Out

Are you considering on-premise vs. cloud based call center? Cloud contact centers win out every time. Take a look how.


If you want your business to succeed, you need to have good customer service.

To provide the best possible customer service, a call center is key. This is what connects you and your employees directly to your clients or customers.

But, which one should you choose? As you’ll soon see, a cloud based call center wins out every time over an on-premise one.

Keep reading to find out exactly how a virtual call center can help your business continue to grow and thrive.

Overview of an On-Premise Call Center

First, we’re going to take a look at the key points to have an on-premise call center. Having an on-premise call center means you host everything needed for customer communication, including software, hardware, and infrastructure.


The installation process for an on-premise call center is both costly and time-consuming. Anything that takes up your company’s time is going to end up being even more expensive because of the downtime.

In addition to having to pick out the right hardware for your business needs, you also need to secure the proper licenses when using an on-premise contact center. Last but not least, you need a space to store all the hardware it requires.

Ongoing Costs

The ongoing costs for an on-premise call center are also higher than a cloud-based one. This is mostly attributed to the hardware.

It needs to be maintained and new hardware needs to be purchased as it breaks or wears out.

You’ll also have to continue to pay to have the space to store the hardware. Considering the average cost of office space across the United States is $256, avoiding this one extra cost could save you thousands of dollars per year.


When you have your own on-premise system, there’s a lot of managing that needs to be done. For starters, the hardware needs to be regularly updated and the licenses have to be renewed periodically.


One of the biggest disadvantages of an on-premise call center is that there’s no flexibility in regards to work location. Employees have to be on site if they want to be in contact with customers.


When your business starts to grow, you’ll need to scale up your call center. With on-premise contact centers, that means buying new hardware, paying for the installation, and new licenses.

This makes scaling up difficult and expensive. You’ll also drastically increase your ongoing expenses as you add more hardware and phone lines.


The days of on-premise call centers are numbered. In fact, it’s estimated that landlines will be obsolete as early as 2020. That’s a huge up-front investment in a system that may end up in the dumpster in less than a year.

Overview of a Cloud Based Call Center

Now, we’re going to take a look at cloud-based contact centers and see how they offer many more advantages than on-premise ones. Cloud based call centers are hosted virtually, so there’s no additional storage space needed.


The initial installation for cloud based call centers is quick and inexpensive. Often, you can continue to use your existing phones and will simply have to download the application to the devices that will be used for customer communication.

No downtime means no lost revenue while your employees sit around and wait for installation. Low initial costs also help your bottom line. You’ll spend less time working to recover the costs of call center installation this way.

Ongoing Costs

The biggest ongoing cost of having a virtual call center is a strong internet connection. However, you’re likely already paying for that, so you may not have any real additional ongoing costs.

Because all of your software and data are hosted remotely, you don’t have to worry about paying for storage space just to make sure you’re able to get into contact with your customers.


Another area in which cloud based call centers beat out on-premise one is when it comes to management. Virtual contact centers are easier to manage, particularly when it comes to updates.

In most cases, you’ll only need one dedicated IT person working for you to solve any potential problems. Compare this to the whole IT department you need for on-premise centers, and it’s easy to see the savings.


With cloud-based contact centers, your employees can be in contact with customers from virtually anywhere. All they need is a laptop computer, smartphone, or tablet with the application installed.

This greater flexibility will help you provide better service to your customers. It also allows employees to work remotely which ensures that even more work gets done to grow your business.


All you need to do to scale up with virtual contact centers is install the application on more devices. That makes it easy to scale up as your business grows, and you don’t have to worry about where you’re going to put extra hardware and servers.

The only thing you may need to invest in is more bandwidth on your internet service. However, this is once again a cost that generally goes with scaling up your business anyway, so it’s not an additional cost caused by your call center.


Virtual phone services are the future. If you want your investment in customer service to propel your business into the next ten years, you have to go with a cloud-based system.

If your business is just starting out, an on-premise call center could be a huge mistake. It likely won’t pay for itself by the time it becomes obsolete, so you’ll have to make the switch to virtual down the road anyway.

Learn More About Virtual Call Centers

As you can see, a cloud based call center beats out an on-premise call center. They’re more cost-effective, easier to install and maintain and provide better flexibility and scalability.

Besides all that, it’s likely that landlines will soon be a thing of the past. To avoid your business being left behind, you need to act now to switch to this new type of call center.

If you’re ready to learn more about how a virtual call center can help you expand your business through excellent customer service, contact us today!

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