In this blog, we do an in-depth comparison of on-premises and cloud contact centre software. You’ll discover the pros and cons of each to help you evaluate which fits your business needs.

Let’s begin. 

What is contact centre software?

Contact centre software automates your key contact centre processes. The software manages interactions between customers and your business through multiple channels like phone, emails, chat, and social media. 

But there’s more. 

Contact centre software also includes some other key features:

• Call monitoring: You can record calls to maintain quality and resolve disputes.
• Automatic call routing: Agents receive calls based on skills, availability, and customer history. 
• Interactive voice response: Automated menus allow callers to select the department they want to connect to.
• Call queuing: The incoming calls get placed in a queue when agents are busy. 
• Customer Relationship Management (CRM) integration: CRMs provide insight into customer information. This helps you deliver personalised service.
• Real-time monitoring: Supervisors and managers can view their agents’ activity in real-time. This helps provide immediate support when needed.

What are the hosting options for contact centre software?

Once you pick your ideal contact centre software, like TelebuHub, it’s time to choose your hosting option. 

You want an affordable, reliable, and low-maintenance hosting option. 

You can host your contact centre software in three ways:

• On-premise
• Cloud
• Hybrid

Let’s take a look at each of them.

1. On-premises hosting

Also called ‘on-prem’, on-premises is the traditional method of hosting contact centre software. 

It stems from the idea that hosting the software within the organisation is best. You get complete control over the hardware, software, and database. 

But there’s a catch. 

It requires significant investment in infrastructure, maintenance, and in-house IT departments. Yes, on-premises hosting is secure and offers high customisation. But on the flip side, it lacks scalability. 

More than twenty years ago, on-premises hosting was the only viable option. But today, we have new and improved options, like cloud hosting. 

2. Cloud hosting

Cloud hosting is the complete opposite of on-premises hosting. 

Your contact centre software gets deployed on an infrastructure managed by a third-party provider. In other words, the provider provides and takes care of the hardware and connectivity. Since the provider manages everything, you can focus on scaling your business.

The best part is that in case of any problems, the cloud hosting provider takes care of it. 

You also get customer service, which includes disaster recovery and increased remote accessibility.

But is your data too precious to keep on a random server in the cloud? Then, you can opt for the hybrid option.

3. Hybrid hosting 

Most times, the best-fit solution for your requirements may involve multiple platforms. 

Hybrid solutions, which combine on-premises and cloud hosting, come to the rescue. This keeps your data secure on in-house servers and the applications on the cloud.

Hybrid hosting is an ideal solution for businesses with sensitive information. 

For example, a bank’s contact centre handles sensitive customer information. The bank can use on-premises hosting to host customer information. The bank application, contact centre software, and your bank website can go on the cloud. 

But before you sign up for hosting services, you must also get your software sorted. 

What is the difference between on-premises and cloud-based contact centre software?

A few important factors distinguish on-premises and cloud-based contact centre software from each other. 

Consider the following before making your decision on which one to install.

1. Set up and ongoing cost 

Setting up on-premises contact centre software requires significant investment. 

You need to buy the software licence and the hardware to house it. Also, you may need to build the supporting infrastructure in your office. This includes hiring IT personnel, employing security measures, and ongoing maintenance costs. 

On the other hand, cloud-based software takes the infrastructure cost off your hands. You only buy the software licence or pay a subscription fee. 

Cloud contact centre software also offers pay-as-you-go solutions, decreasing your costs further. 

2. Set up time

On-premises set-up can take weeks or months, depending on the scale. 

You need time to assemble the equipment, install the software, and test it. Once you do that, you then need to hire and train agents to use it.

The process is simpler for cloud-based contact centre software. 

You only need to test it and train your team to use the software. This can take hours to a couple of days, depending on your team’s size. 

Cloud setups prove highly useful in addressing your business problems.

3. Security 

On-premises contact centre software remains under your organisation’s control. You get complete control over the data access. The physical security of your infrastructure is also easy. 

So, if your organisation handles sensitive data, consider getting on-premises software.

You must rely on your provider’s security measures if you get cloud-based contact software. Reputable service providers prioritise investing in robust security infrastructure. 

When using their service, it’s advisable to inquire about their compliance to regulations. 

However, your primary concern should revolve around data control. When you host data in the cloud, its security becomes the responsibility of your provider.   

4. Scalability 

You must buy new hardware to scale your on-premises contact centre software. Then, you’ll also need to spend time with its setup and testing. If you scale down, you must let go of your agents.

But with cloud-based contact centre software, scaling isn’t an option but a feature. 

You can increase or decrease operations without any delays. This helps you accommodate seasonal peaks and pay for what you use.

5. Integrations 

While testing on-premises software, you may find integrations you can make in your existing software. 

But not all these integrations are so straightforward. 

Some may need custom development. Whereas others could come with compatibility issues, thus causing delays.

Cloud contact centre software, however, offers pre-built integrations you can view and assess. 

These tools include CRMs, ticketing tools, and communication platforms. You can synchronise data across the system, letting your agents work seamlessly.

6. Maintenance and upgrades 

If you host it on-premises, you need personnel to maintain your contact centre software. This involves keeping both the hardware and software up-to-date and meeting necessary standards. 

If you host your contact centre software on the cloud, your providers manage and maintain it. 

This reduces the intervention required from your company.

7. Reliability and downtime

You maintain your on-premises contact centres. This means if any unexpected issues occur, it can lead to significant downtime. 

Plus, you need to assign specific people to oversee the system.

With a cloud-based solution, you cut costs as your provider offers high availability and failover mechanisms. 

They also guarantee a certain uptime, which saves you from disruptions. 

8. Agent productivity 

Your on-premises software remains limited within your contact centre’s walls. Your agents cannot access the software from anywhere else. 

However, cloud-based systems let you access it from anywhere. 

Plus, your agents don’t remain tied to the company hardware. They can switch if their hardware encounters any issues. 

This flexibility promotes remote work and increases agent productivity. 

Let’s compare on-premises and cloud-based contact centre software for a quick overview. 

On-premises vs. cloud-based contact centre software at a glance

	On-premises	Cloud-based
Setup and ongoing cost	High upfront cost, ongoing maintenance cost.	Low upfront cost, subscription-based, or on-the-go payments
Setup time	Requires time to design, test, and train. It can take months.	Few days to set up, test, and train
Security	High security and control of data.	The provider takes care of security.
Scalability	Not quickly scalable. Require planning and investment to scale.	Easily scalable.
Integrations	Identify integrations and build them.	Built-in integrations.
Maintenance and upgrades	Needs an in-house team.	The cloud service provider manages upgrades and maintenance.
Reliability and downtime	Your organisation is responsible for reliability. Unexpected issues can lead to significant downtime.	The service provider maintains low downtimes and reliability.
Agent productivity	Agents are limited to a physical location	Promotes remote work and flexibility.

With this bird’s eye view, let’s dive deeper into each software’s benefits.

What are the benefits of a cloud contact centre? 

Here is a list of advantages that a cloud-based contact centre can bring to your organisation: 

• You can offload IT management tasks to your cloud provider. This lets your agents focus on enhancing customer interactions.
• You get seamless integration with other cloud-based tools and platforms for improved workflows.
• Cloud solutions enable expansion to different regions and markets. You don’t need to set up any physical infrastructure.
• Cloud platforms offer advanced reporting and analytics for data-driven decision-making.
• You can scale up or down to handle changing call volumes and business needs.
• You can reduce upfront costs with subscription-based or on-the-go pricing.
• Your time-to-market is far quicker compared to on-premises contact centre solutions.
• Your agents can work from anywhere if they have an internet connection.
• Your cloud providers handle software updates. They make sure you get access to the latest features and security patches.
• Your data backs up regularly, enhancing business continuity and recovery.

What are the benefits of an on-premises contact centre? 

Larger organisations often favour on-premises contact centres. Here’s how it’s beneficial:

• You can tailor the contact centre software and infrastructure to your business needs.
• You can meet industry-specific regulations and compliance requirements with more efficiency.
• You maintain complete control over sensitive customer data and security measures.
• Your investment leads to predictable long-term costs.
• You directly control hardware, leading to reduced latency and faster response times.
• You do not rely on external network connections. This potentially reduces external vulnerabilities.
• You have more control over integration with existing on-premises systems and tools.
• You have greater autonomy over security measures and access to customer data.
• You can adapt and expand the infrastructure based on unique business requirements.
• You can leverage your equipment and infrastructure over the long term. This results in long-term cost savings.

With all these benefits in mind, let’s tackle the most significant question. 

On-premises vs. cloud-based: Which type of contact centre is best for your business? 

There is no easy answer to this question. Since every business is unique, it may encounter novel technical problems.

Follow these recommended guidelines to select the right software. 

1. Evaluate your business needs

Start with evaluating your current business’s standing. 

Examine the current and projected volume of your business that you intend to achieve in 5 years. This will give you a fair idea of scalability and the solution that will work best.

Next, consider how these volumes will impact the call volume and IT infrastructure.

If you expect it to grow multi-fold rapidly, then a cloud-based solution fits your needs. But if you expect steady growth, then opt for on-premises infrastructure. 

Cost and growth go hand-in-hand. So, account for the budget you need with upfront and ongoing expenses. 

2. Assess IT capabilities and resources 

Whichever software you choose, you require a dedicated team. The real difference lies in your team’s capabilities.

Is your team adept at handling hardware, software, and security? 

How will hiring people impact your budget and ongoing costs? Answering these will give you insights into your team’s capacity. 

Also, assess the potential impact of the workload for both options. 

Opt for a cloud-based solution if you do not have the time to hire and train resources.

3. Consider your budget 

After accessing your business goals, budget is the biggest deciding factor. Both on-premises and cloud solutions incur costs, albeit slightly differently. 

Start by evaluating how much your business will spend to set up a solution upfront. 

Opt for an on-premises solution if you can afford to pay for software licences, hardware and training. This will give you control over your data and resources.

But if your business is flexible, consider a cloud contact centre. This is the best fit for you if you sell seasonal products. 

Consider maintenance costs while budgeting as well. 

On-premises installations need a team and hardware upgrades. Cloud solutions offer the same built into the monthly price you pay your service provider. 

Compare costs and get an estimate that serves your business goals in the long term.   

4. Examine security and compliance requirements

Every industry has unique data security and compliance requirements. 

When assessing your industry’s compliance requirements, consider the sensitivity of your customer data. Then, compare the security options for the on-premises and cloud-based solutions. 

If you work in the banking industry, you may be required to follow ISO, GDPR, NIST, or SOX regulations. 

These regulations offer cybersecurity compliance to prevent data breaches for financial organisations. 

Each of these bodies has extensive requirements. You must fulfil all to get the certificate. 

5. Analyse accessibility and remote work

Estimate the cost of hiring your agents. 

If you have offices worldwide, opt for a cloud solution. 

Opt for an on-premise solution if you plan to host your contact centre in only one location. 

Opt for a cloud-based centre if you want to engage agents who speak various languages to talk to your customers. 

6. Understand maintenance and updates

Maintenance and software updates take up significant time. 

Gauge your understanding of hardware, software maintenance, and security updates. Your cloud-based service provider takes care of updates and maintenance of the software. 

This frees up your IT resources to handle other projects. 

However, you need a dedicated team if you choose an on-premises solution. This also impacts your budget.

Nevertheless, maintenance downtime will impact both types.

7. Check integration with existing systems 

For this step, evaluate all your operational systems. 

Evaluate how they can integrate with on-premises and cloud-based contact centre solutions.

Choose the solution that offers the least resistance and avoids downtime during integration.

Get started with TelebuHub

So there you have it!

Now, you know how to pick the right solution based on your business needs, budget, IT infrastructure, and compliance requirements. 

All you need is a reliable contact centre partner.

TelebuHub is a feature-rich, single-window cloud call centre software. It is powerful yet easy to use. It’s intended to simplify customer communication. 

It makes your agents productive and boosts employee experiences.

So, schedule a free demo to see how the platform works today.

FAQs 

Why choose cloud over on-premises?

Cloud contact centre software offers benefits like scalability, cost-efficiency, and remote accessibility. You also get automatic updates and little maintenance burden. 

Is cloud faster than on-premises?

Cloud services are faster to deploy and scale than on-premises setups. However your speed can vary based on network connectivity and hardware configurations.

Which is safer, on-premises and cloud?

Both on-premises and cloud solutions offer security of different kinds. On-premises offers direct data control. Cloud providers invest in security measures and certifications.

Which is cheaper, on-premises or cloud?

Cloud solutions have lower upfront costs and predictable ongoing expenses. On-premises setups have higher upfront prices with maintenance fees. The cost comparison also depends on usage and specific business needs.

Why is cloud cheaper than on-premises?

Cloud solutions are cheaper due to lower upfront hardware costs and ongoing expenses.

How to transition from on-premises to a cloud-based contact centre?

Here is what you need to do:

• Evaluate your current infrastructure. Look for areas for improvement and scalability limitations. Define your goals for the transition. 
• Research and select a suitable cloud provider that aligns with your goals. 
• Create a data migration plan that does not disrupt your processes.
• Configure the cloud contact centre environment according to your business needs.
• Thoroughly test the new platform before training your agents on the new workflows.
• Gradually migrate operations to the cloud while ensuring data security and minimal disruption.
• Monitor the performance of the cloud contact centre by gathering feedback from agents.
• Once you are confident of the performance, fully migrate to the cloud.

During the process, ensure you keep all stakeholders informed about the migration. Always have a contingency plan ready if anything goes wrong with the implementation.

What happens if my cloud-based contact centre software provider goes out of business?

This situation will lead to service disruption, data access issues, and potential data loss. Usually, your service provider will inform you months before such an event happens. Nevertheless, create a contingency plan. Back up your data regularly to mitigate such a risk.

Which is the best cloud contact centre? 

Determining the “best” will depend on your specific business needs, industry, and requirements. We recommend you evaluate providers based on features, scalability, integrations, pricing, and customer reviews. 

TelebuHub provides impeccable customer service, features, and integrations at an unmatched price. You can reach us here.