Cloud vs. Premise-Based Contact Center

A cloud contact center is a software-based customer service solution that allows businesses to manage customer interactions, including voice/video calls, emails, and texts in a single interface over the internet. It stores all the data and applications in the cloud, bypassing on-premises hardware. This reduces the overall operational cost and provides smooth maintenance and updates. All you need is a stable internet connection.

• Omnichannel Support: Combine all communication channels (voice, email, text) into a single interface for a consistent customer experience.
• Call Routing and IVR: Direct calls to the appropriate department or member and use automated voice prompts ("Press 2 for support") to guide customers.
• Call Recording and Monitoring: Record and store all conversations, which can be monitored later for training and quality assurance purposes.

Cloud contact centers provide flexible, scalable, and cost-effective automated communication solutions, enhancing customer interaction.

• Rapid Installation and Updates: Quick setup and automated updates with minimal manual effort.
• Improved Customer Experience: 24/7 customer support for faster issue resolution.
• Flexibility: Allows you to use its services from anywhere, providing a flexible option for remote workers.
• Scalability: Add more agents or features to handle high call volume without additional infrastructure.
• Affordable Cost Structure: Operates on an affordable subscription or pay-as-you-go model.

An on-premise contact center is a contact center with physical hardware and software installed on the company’s infrastructure rather than in the cloud or with a third-party service provider. In this type of contact center, all customer interactions are managed internally, and the company’s IT staff is responsible for configuring, upgrading, and maintaining the system.

These services are best suited for enterprises that require tight control over their operations and customization, allowing them to tailor the system to their unique needs.

• Control and Customization: Enterprises have full control to customize the additional features and users.
• Data Privacy and Security: Offers high privacy as data is stored on the business’s servers.
• On-site Infrastructure: Require hardware and software, such as servers, network equipment, and other communication tools.

An on-premise contact center gives businesses full control to customize features and manage users, while offering better data privacy.

• Predictable Cost: Cost-effective in the long run, due to lower ongoing maintenance costs.
• No Dependency on Third-Party Providers: Fully managed in-house, eliminating reliance on third-party providers.
• Data and Security: All the data remains confidential within your infrastructure.
• Better Integration with Existing Systems: Integrates easily with existing systems without complex data migration.

Cloud contact centers are hosted online and easy to set up, while on-premise centers are managed in-house with more control but need higher upfront costs and longer deployment.

Here’s how Cloud Contact Center and On-Premise Contact Center differ in different aspects:

The cloud contact center operates on a pay-as-you-go model or subscription package, ultimately reducing the initial and ongoing costs.

Conversely, the premise contact center requires a higher upfront payment to purchase a license and set up physical hardware. Businesses must invest a large amount before using the services.

Cloud contact centers offer greater flexibility, allowing businesses to adjust resources based on their need and enabling them to grow without needing physical upgrades. Adding features and services is easier; you just need to install the application.

On the other hand, premise contact centers are less flexible; they require additional infrastructure for scaling up and down, making the process time-consuming and complex.

Setting up and deploying cloud-based contact centers is easier and faster, as they require minimal physical configuration. Also, updates are automatically implemented by the cloud.

On the contrary, a premise contact center is hosted locally and requires you to manually set up all the software and hardware. Additionally, deployment time is also longer, as everything must be built from scratch.

Most VoIP providers offer cloud contact centers with advanced security features, such as encryption, multi-way authentication, and access control, to protect customer privacy.

Premise-based contact centers are fully controlled by the organization itself, making them ideal for businesses where security compliance is their top priority. However, the privacy and security of the system entirely depend on the company’s policy and the security measures it has adopted.

The cloud contact center service reliability depends on your VoIP service provider’s infrastructure and SLAs (Service Level Agreements). Most providers claim to offer 99.9% uptime.

On-premise contact center reliability depends on the organization’s power, network, and data backup and recovery infrastructure.

Cloud contact center solutions are best suited for distributed and remote workers. As all the services are cloud-hosted, you can access them anywhere, anytime.

Premise-based contact centers, on the other hand, are typically location-bound but can be extended for remote access with additional infrastructure.

Cloud contact centers are managed and controlled by third parties, offering you only partial control. It means service providers can directly influence how you manage customer interactions.

Conversely, every interaction and information in the on-premises contact center is managed and controlled by the internal IT expert. The company has full control and access to customer data and necessary updates. 

Quick insights on cloud vs. premise contact center:

Both cloud and on-premise contact centers facilitate communication between businesses and customers, offering similar call features like call routing, IVR, call recording, and CRM integrations. Both allow businesses to handle customer inquiries across various channels like voice, video, email, and chat, while allowing customization to fit specific business needs and workflows.

Choosing between a cloud and an on-premise contact center depends on your business requirements, priorities, and long-term strategy. On-premise solutions are ideal for organizations requiring maximum control over operations and strict security compliance. And, if you’re looking for a scalable, cost-effective, and higher uptime solution, then a cloud contact center can be a better option.
 

The cloud is often secure, as most cloud providers are experts in security technologies. However, on-premise systems give you more control over security but require additional effort and resources to maintain.

Yes, on-premise contact centers are relatively more expensive than the cloud, requiring high upfront costs for initial setup and hardware.