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On Premise versus Cloud Based – What factors should we take into consideration before choosing a solution?

Let’s go back in time and see how the on-premise call center solutions were implemented back in the day. To be able operate a call center back in the day, owners had a lot of costs and factors to take into consideration before getting into the outsourcing business. The operating office needed to be wired in phones lines including servers and PBX phones with the need for an internal team of IT Specialists to be present on premises in order to resolve hands on issues during operations. 

 Every equipment of the call center needed to be within the operating compound in order to ensure its proper functionality. Back then, call center owners were happy with this setup, it is not as if they had other options to choose from, as on premises solutions were quite reliable until there was somehow a breakdown in their system. However it was considered as the safest option as there was little chance of phishing, hacking and eavesdropping into your data and calls. The biggest drawback of this model is in its setup cost and infrastructure complexity. 

Cloud based call centers on the other side do not have the need for physical phones, phones lines and even servers in order to be fully operational. It is accessible via desktop, laptop and even tablet as long as you have a good internet connection. The whole infrastructure is based on the usage of VOIP (Voice Over Internet Protocol) and your agents can connect from anywhere in the world as long as they have access to a good internet connection. In today’s era, our main concern is how secure is the Cloud due to a lot of cyber security breaches and attacks, especially in this industry where everything is accessible with a click. With such a heavy dependency on the internet, the question that comes to our mind is the following: Will connectivity affect our agents’ productivity? This would result in poor calls quality wise or even failed calls in case of connection loss. 

Here are the main differences of on premises versus cloud based call center solutions.


First of all let’s see the implementation costs of both systems. On premises phone systems are generally more expensive than cloud. It is because you need to buy the physical phones, install the wires and hire technicians and IT people to ensure smooth operations plus cater for maintenance and repairs. 

On the other hand, a cloud based system is way easier to implement. No manpower, no infrastructure and no configuration. Agents use their pc or laptops to make calls via VOIP. Money will be saved on physical equipment related to on premises and you can even integrate your CRM tool or have an inbuilt CRM tool that would save you further money rather than buying separately. 


Cloud based call center solutions give you access to detailed real time analytics enabling you to make efficient business decisions on the go. Managers, Directors and Owners have access to performance data of every single calls made by each agents, the duration of each calls, the hold time, the quality of the conversation on each call and much more enabling them notice any non-functional situation at a glance. This is the main weakness of on premises solutions. They do not come built in with analytics, however you can still buy them at an additional cost every month, resulting in more operational costs. 


Considering the fact that today agents handle around 50 calls a day with a percentage increase of 30% every single month, adding agents if you are on an on premises solution can prove to be much harder than expected. You will need to call your phone provider then wait for the phone to then configure it to suit your needs before your agents can start making calls. 

With a cloud based solution, your project becomes easily scalable as you can add or remove agents at will. You do not need to install or configure any hardware. All you need to do is plug and play when you recruit new agents by inserting them as new user on your contact center solution. 


Call centers with a remote work access survived the pandemic as they do not have the need for a physical office or server, thus enabling the agents to connect from anywhere in the world. On premise call center solutions were forced to shut down their call operations and this had a dire impact on their profitability.  


Can cloud solutions provide companies with the same level of security like on premises solution? The answer to that is YES they can.

Nixxis uses the services of highly secured hosts which are certified ISO 9001 : 2015, ISO/IEC 27001 : 2013, ISO/IEC 27017 : 2015, ISO/IEC 27018 : 2019, PCI-DSS, SOC 1 TYPE I, SOC 2 TYPE I & SOC 3.

Companies today fear hackers and data leakage. The only reason is because if their data falls into wrong hands, they won’t know how to stop the damage unless they know the source of the damage. This is the only reason why a lot of companies see on premises phone systems as the safest option for their business. There is minimal risk of an unauthorized person to get into their servers and data rooms and even spy on their calls, unless it’s someone internally. 

It is clear that in times of uncertainty, having a flexible solution is a definite advantage. The benefits of opting for a cloud based solution is indeed the option to go for due to its superiority.



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