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Cloud Vs. On-Premises Call Center Solution: Differences and Advantages

What is a cloud-based call center?

Cloud-based call center software is the one that is hosted in the cloud by a service provider. The cloud is used for storage and processing of all information. The functioning of this call center solution depends on an active internet connection having sufficient bandwidth. As a cloud based call center software is hosted in the cloud, it can be easily accessed from anywhere across the globe just by using an active internet connection.

What is an on-premises call center?

As the name suggests, the setup of this type of call center solution is established in the office premises. It requires communication server, hardware, software and other infrastructure for its operation. There is a dedicated IT support team that takes care of the installation and maintenance of all the systems and tools. The on-premises call center software is controlled internally, i.e. in-house from the office.

Differences between on-premises and cloud based call center solutions:

1) Installation

On-premises: Its setup may require several weeks and is extremely tedious and time consuming. It involves purchasing multiple hardware and compatible software to go with it. It also involves obtaining the required licensing.

Cloud-based: Installation of the cloud-based call center software is very easy and can be done within a few hours. It just involves installing the software on the cloud and makes some setup configurations on the PC and you are good to go.

2) Setup and operational costs

On-premises: The cost involved is comparatively high. This is because an on-premises call center solution requires upfront capital expenditure on server, hardware, software and licensing. It also requires infrastructure and office space to accommodate the system. Also, there are on-site upgrades and maintenance tasks that need to be done at a regular interval. This leads to recurring costs as well.

Cloud based: It functions without the need for any expensive hardware or servers. The only requirement is an active internet connection with strong bandwidth and a subscribed plan to host in the cloud. Cloud based call center software involves monthly subscription charges.

3) Reliability

On-premises: Being a traditional system, it relies on physical hardware and server for its functioning. However, the chances of physical system breakdown are relatively more which affects the overall productivity of the call center. One key advantage of on-premises call center solution is its superior call quality and nearly no call lags as well as complete control on the system.

Cloud based: Since its working is based on the internet, stronger the internet connection better will be the call quality. Without proper bandwidth, the call quality will be affected tremendously.

Advantages of on-premises call centers

  • Invest only in the systems and tools that are required.
  • The long term benefit as the upfront cost would be paid off without any continuing costs.
  • Customization is possible as per the business needs.
  • Maximum control over the systems and processes.
  • Safe and secure storage of data over in-house servers.

Advantages of cloud-based call centers

  • Easy setup and installation
  • Minimal management
  • Higher flexibility in business operations
  • Convenient and secure data storage
  • Increased productivity of agents
  • Easy scalability as the business expands
  • Allows remote working option for agents and businesses
  • Reduced operational costs

Depending on the preference, budget, and the call center solution that needs to be installed, one can choose between on-premises vs. cloud call center solutions.

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