Cloud or on-site IP phone system: which to choose
Both options offer the same core features. The difference is where the phone system lives, how you pay for it and what happens when something fails.
Cloud phone system
A provider hosts the phone system and your phones connect to it over the internet.
- Pros: no server in the office, ideal for remote work and multiple sites, quick to set up.
- Cons: recurring fee per user or service, complete dependence on the internet and on the provider's terms.
On-site phone system
The phone system is an appliance or server on your premises.
- Pros: internal calls keep working even if the internet drops, full customisation, no per-user fee with open source software.
- Cons: upfront investment, and it needs maintenance, updates and backups.
Open source phone systems
Asterisk is a widely used open source telephony engine, and FreePBX is an interface for managing it. Together they make a full-featured phone system with no per-extension licences, on your own server or in the cloud.
How to decide
- Small team, lots of remote work: cloud.
- Hotel or business where internal calls are critical: on-site, or hybrid.
- Many extensions and a need to customise: on-site or open source.
Hybrid set-ups also exist: an on-site phone system with remote mobile extensions and cloud backup.
Frequently asked questions
Can I switch from one to the other later?
Yes. SIP phones can usually be reconfigured for the new system, and your numbers stay with the operator.
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