What Is the Difference between a Cloud Contact Center and an On-Premise Solution?

March 26, 2022


Cloud computing and cloud-based technologies are being adopted in the market in massive amounts. So if you are wondering whether it is the right time to switch from on-premise solutions to cloud contact centers - yes, it is! However, organizational leaders and top-level executives should first note the prime differences and benefits that cloud call centers have over on-premise solutions.

If you wonder how on-premise solutions differ from cloud contact centers, you are in the right place. This article articulates the distinction between cloud call centers and on-premise call center solutions.

What are on-premise call center solutions?

On-premise call center solutions are traditional hardware solutions that reside within the office premise. They use dedicated hardware, cables, servers, software, and call systems to operate. The organization that owns the on-premise solution is responsible for maintaining it periodically.

However, on-premise contact center solutions can be expensive. As different hardware and network units reside within the enterprise's perimeter, any disaster or damage can cost a fortune. So, the organization has to roll out preventive measures against disasters to maintain uptime.

Apart from maintenance costs, on-premise solutions require many engineers and an expert workforce to be set up.

What are cloud contact centers?

Cloud contact centers or cloud call centers are cloud-driven calling services that help the organization handle incoming and outgoing customer calls. Cloud-based call centers are flexible and scalable. They allow customer care executives and agents to contact globally without extra cost.

Cloud call centers are more cost-effective for a company than on-premise options. Because of cloud-based call center solutions, an organization does not have to buy additional hardware (such as on-premise servers and network devices).

Cloud contact centers are free from on-site disasters, natural calamities, and physical security threats, eliminating downtime and high maintenance costs.

Cloud call centers are easy to install and support communication through general VoIP calls, chat, video calls, voice mails, text messages, etc.

Let us now dig deep into the differentiation between cloud contact centers and on-premise solutions.

Difference between cloud contact centers and on-premise solutions

Here’s an overview of the differences between on-premise and cloud contact center solutions:

On-Premise Solutions

  1. It is less scalable as companies need to set up the hardware and networking within their premises.
  2. It is costlier as the company has to buy more and more hardware, devices, and other components to run an on-premise solution.
  3. Employees within the organization and their customers can experience downtime while using on-premise solutions.
  4. The scope of system failure is high.
  5. Integrating new devices and hardware is required in on-premise solutions as organizations internally append and manage it.
  6. It needs additional engineers and experts to set up the entire infrastructure within the premise.

Cloud Contact Centers

  1. It is more scalable as the entire system resides on the cloud. Cloud caters to the pay-as-you-go model that scales without much difficulty.

  2. It is cheaper than on-premise solutions because organizations do not have to buy any hardware.

  3. Cloud-based call centers stay up all the time. In the case of internet breakdown, cloud calling systems can redirect calls to other phones so that companies never miss a call from the customer.

  4. The scope of system failure is low.

  5. Cloud contact centers do not allow integrating any hardware as all the resources and hardware resides remotely in a data center.

  6. It does not need experts to install. Anyone with basic technical skills can initiate the system.


We hope this article has given you a clear understanding of the difference between on-premise and cloud contact centers. Try the leading cloud contact center service in India - Knowlarity. Besides handling inbound and outbound calls with ease, Knowlarity’s cloud contact center solution shows an agent's performance insight, call routing, and recording, concurrent calls, mobile app access, etc.

Written By:  Aakanksha


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