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A comparison between an on-premise contact center and one in the cloud based on some of the most important indicators.

In this post there is information on the advantages and limitations in these contact center models according to the existing technology in the market.

Let’s make a comparison from some of the most important indicators between an on-premise contact center and one in the cloud.

Installation time

Deploying a physical contact center – purchasing hardware, obtaining licenses, preparing infrastructure, and finding compatible software – can take several months.

Installing and running a cloud-based contact center software requires only installing an app on a computer.

Costs and expenses

Capital expenditure. Hardware, licenses, and physical space coupling for a physical contact center can be unaffordable for small and medium-sized businesses.

Its operation requires recurring expenses in addition to the high reinvestments every five to seven years, when physical facilities must be replaced due to aging hardware and advances in software.

Operational expense. Cloud-based calling systems do not require investment in hardware or infrastructure. To install and use it, you need a powerful internet connection –with quality and well-configured routers– and devices with internet access.

Poor bandwidth will cause saturation in your contact center and problems with call quality. Your cloud provider can probably take steps to lessen these problems.

There is a recurring monthly or annual subscription payment. These frequent payments are, in short, cheaper compared to the maintenance costs of the physical solutions.


Adding agents to your team means buying new phones and modifying hardware. And if trimming is necessary, there will be an unnecessary surplus of devices.

The agent must be physically at his desk to perform his tasks, as the phone is required to be connected to your office server.

A cloud contact center software is adaptable, easy to manage and customize. Adding or removing users does not require additional hardware and any change in your monthly bill will be reflected instantly. These platforms allow agents to telecommute with only a good internet connection.


Many businesses rely on physical contact centers to avoid latency or intermittent call quality. If the equipment breaks down, it can be removed by the service provider. In the case of an IP PBX, it may become incompatible with your software.

The cloud contact center does not have these hardware problems. Failures in the reliability or quality of calls, lost data packets, and lost or poor quality calls are attributed to a weak internet connection. Make sure that the connection can support your activity comfortably.

In the case of cloud models, advances in existing functionalities continue to be developed with the help of new technologies, such as:

Real-time call monitoring: It is much easier to implement and carry out than in a physical configuration. Calls are recorded, stored, and analyzed, and supervisors can access this intelligence from anywhere to make data-driven decisions.

An intelligent IVR enables more accurate call filtering and routing. VoIP enhances this by adding features such as voice recognition to improve IVR accessibility. Amortize the time of your agents and solve more questions in the first call.

Customers with a VoIP system will be able to call your business with one click. Less customer effort, greater satisfaction.


It is possible to integrate your on-premises call center software with other services, although licensing and installation are a nightmare for most IT experts.

Cloud-based call center software service providers have designed their products to integrate with other services to improve your customer service. You can integrate your CRM system, call script generators, customer service tickets, survey templates, and much more with your calling software. This provides an intuitive and fluid experience for your agents and, therefore, a higher quality customer service.

Collaboration and productivity

On-premises contact center tools are unrelated to other communications such as chat, email, or CRM platforms.

The cloud-based one improves the linking of the phone with these other tools by sharing the information easily between the different softwares.

With integrated real-time dashboards, the fully web-based model helps managers monitor volume and maintain a consistent rate of productivity.

Agents can conveniently transfer calls when additional information or superior intervention is needed.

Agent replacement rates are reduced by maximizing capital and time spent recruiting and training agents.

Dependence on IT staff and redundancy

Investment in a qualified IT team that takes care of the maintenance, repairs and upgrades of the physical hardware.

Implementing backups and redundancy processes are complex and can be expensive. Downtime is expensive for your business. You require space to store the equipment.

With a cloud service, you delegate these concerns to a service provider. Unless your line of business requires it, you won’t need to have a full-time IT team hired.

These systems handle massive data volumes and must offer even higher quality redundancy protection and disaster recovery. Downtime is less frequent and can be resolved in less time. You can recover not only your communication data but also operating systems, patches, programs and much more.

Security and privacy

Although it seems otherwise, physical facilities are susceptible to a large number of security breaches due to human error or intentional damage.

The cloud has a false bad reputation when it comes to security. When handling large volumes of data, part of the job of cloud service providers is to prevent any type of security breach through experts who constantly test the system. These providers are capable of detecting more threats and being more efficient than any small IT team.

Environmental care

Accumulating, replacing and disposing of environmentally friendly hardware, while sharing cloud resources with other companies saves tons of waste.

Deciding for your best option

If you opt for a cloud contact center, choose the software that best suits your needs and activities, as well as a technology partner that provides a smooth and fluid implementation.

With three decades of experience in Contact Centers, at TELNORM we have led, trained and supported our clients through multiple waves of change and technological evolution. We integrate and develop the best solutions using the most highly qualified technology by experts in the sector. We are an attractive partner that brings vision, experience and powerful execution in Cloud Based Services and Integration of Solutions that will boost your business.

Contact us.

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