On-Premise Phone System vs VoIP Phone System
There is a never ending debate around the topic of whether cloud phone is better than the traditional on-premise phone system. Cackle, a VoIP service provider in the New Zealand and Australian market will provide a breakdown and insights to why VoIP is the go to solution now and the future.
In this blog post, we’ll dive into some of the pain points associated with an on-premise solution and help you make a sound decision for your business whether to stay or migrate.
Pain Points of On-Premise Phone
On-premise phone systems has been a popular choice for businesses of all sizes. They offer a number of features and benefits that can help businesses improve their communication and collaboration while internet speed was still not yet mature. However, there are many obstacles that cause headaches:
- High upfront costs: On-premise phone systems are expensive to purchase and install. This is because you need to purchase the hardware, software, and any necessary networking equipment.
- Maintenance and upgrades: On-premise phone systems require regular maintenance and software upgrades. This can be a time-consuming and expensive process.
- Limited scalability: On-premise phone systems can be difficult to scale up or down as your business grows or shrinks. This is because you need to purchase additional hardware and software as your needs change.
- Security risks: On-premise phone systems are more vulnerable to security risks than cloud-based phone systems. This is because they are located on your premises and are not protected by the same security measures as cloud-based systems.
Advantages of VoIP Phone
With the rise of internet, many businesses are replacing the traditional telephony system to voice over IP because it makes sense for many reasons:
- Cost savings: VoIP line save businesses a significant amount of money on their monthly phone bills. This is because VoIP calls are typically much cheaper than traditional landline calls, especially for international calls. For example, a one-minute call from the United States to the United Kingdom costs an average of $0.50 with a traditional landline, but only $0.09 with VoIP.
- Portability: VoIP calls can be made from anywhere with an internet connection, so you can work from home or take your office with you when you travel. This can be a major benefit for businesses with remote employees or employees who travel frequently.
- Advanced features: VoIP systems offer a variety of advanced features that can help businesses improve their communication and collaboration. These features can include call forwarding, voicemail, conference calling, and integration with other business applications such as CRMs and more.
- Improved call quality: Internet phone calls can have better sound quality than traditional landline calls, especially if you have a high-speed internet connection. This is because VoIP uses digital technology to transmit voice data, which can provide a clearer and more consistent sound quality.
- Maintenance and upgrades: VoIP is almost zero to none for maintaining cloud PBX because VoIP service is considered a hosted service. The service provider take cares of all the server and software upgrades.
- Security enhancement: Cloud phone system is more secure than an on-premise system in many ways. It is hosted in a different location to the business premise should any cyber attack were to happen to avoid leaking confidential call logs and recording. There are also additional firewalls and security software to cloud PBX implemented by the VoIP IT engineers.
- More options: VoIP give users a choice of running the phone as a VoIP mobile app or running it on a SIP phone. There are many vendors such as Yealink and Cisco who manufactures advanced and feature rich IP phones for the market.

Major Phone Systems for Business

Big players such as Microsoft and Cisco has introduced and integrated IP telephony into their existing application for Teams and Webex. This allow users to stay on a single platform to do their calling, chat, video meetings and provide higher productivity on many levels.
What’s even cooler is that you can also do all your communication and collaboration straight from some of the certified Cisco IP Phones and Yealink Teams Certified IP Phones for greater flexibility.


Cackle is a certified Cisco Webex and Teams Calling partner, talk to us and discuss on the offerings, contact us here.
It's Never Too Late To Migrate
VoIP is easy to set up with minimal cost and not just for business but also VoIP phones for home users can be beneficial as well. As long as you have a functioning internet connection, you can make calls over the internet at for with very cheap rates for local phone calls and international phone calls.
For residential users, existing telephone can be used through an analogue telephone adapter which also help reduce the initial set up cost. With Cackle’s included call plan, the minutes are covered so you can join VoIP free calls within New Zealand and Australia landline and mobile.
For businesses, it is a no brainer as the benefits far outweighs an on-premise solution. If you would like to discuss more around our Cackle VoIP offering, drop us a message here.