Unified communications enables employees to collaborate across channels and devices and integrate critical systems. Companies face a serious question: should they adopt flexible cloud-based communications or maintain existing on-premises infrastructure?
Let’s compare the key features of both so you can make the right choice.
Quick links:
What are on-premise communications?
Want to unify your collaboration and communication tools but don’t know which platform to choose? Schedule a free consultation today to find the right solution for your business needs.
What Is UCaaS?
Unified communications as a service (UCaaS) refers to a unified communication solution that is cloud-based, rather than located on-premises. UCaaS platforms integrate multiple communication channels—including voice calling, video conferencing, messaging, chat, and file sharing—into a single platform.
UCaaS consolidates business communications infrastructure into a single interface. This eliminates information silos and reduces costs compared to on-premises systems.
What Are On-Premises Unified Communications?
On-premises unified communications (UC) refers to systems that are hosted within a company’s data centers and offices rather than in the cloud. Organizations purchase, install, and manage all the necessary software, servers, and equipment directly instead of going through a provider.
With on-premises solutions, full control rests on internal IT teams to operate systems end-to-end. While organizations retain more oversight regarding customization, equipment, and data, UC requires substantial upfront and ongoing investments into facilities, infrastructure, and dedicated support staff.
The Differences between On-Premises UC and UCaaS
To determine which solution is best for your business, consider the costs, features, functions, and security associated with UC and UCaaS.
Costs
UCaaS and on-premises unified communications have markedly different cost structures when it comes to upfront, operating, and scalability expenditures.
Upfront Costs
UCaaS solutions involve no major initial investments. Companies simply pay a per-user monthly subscription fee to access the hosted services.
In contrast, UC deployment requires significant initial capital expenditures to procure the necessary infrastructure. This includes servers, networking and telephony equipment, data center facilities, and installation costs.
Operational Costs
With a UCaaS model, the solution is hosted and maintained by the service provider, limiting internal staffing costs for management and overhead. Monthly per-user fees also remain relatively fixed.
On-premises deployments incur considerable operational expenses on an ongoing basis. This includes IT personnel costs to support systems, address issues, and manage upgrades. Hardware and software maintenance also adds substantially to expenses.
Scalability Costs
The ability of UCaaS to easily scale services as business demands change is one of its key advantages over on-premises systems. Companies pay for exactly what they need each month.
To scale on-premises UC, costly additional infrastructure and complex provisioning and support are required.
Features
The core capabilities of on-site and cloud-based solutions have significant overlap, but there are notable differences to consider as well.
Core UC Features
Both UCaaS and on-premises options enable similar unified communication features:
- Voice calls
- Video calls
- Audio conferencing
- Instant messaging
- Presence indicators
- Screen sharing
- File collaboration
Users can leverage these modes of communication from a consistent interface and user experience. Leading solutions also include voicemail, auto attendants, call routing tools, and common administration portals.
Unique Features
Both on-premises UC and UCaaS offer unique features:
- Custom apps and interfaces. On-premises UC excels in customization for unique workflows and deep integration with proprietary systems.
- Mobility. UCaaS delivers a robust mobile experience with constant remote accessibility across devices.
- Advanced analytics. Cloud platforms can more easily tap into rich aggregated data sets compared to on-premises UC.
- Upgrades. UCaaS simplifies staying current with the latest software releases while on-site UC requires manual upgrading.
The range of features can vary greatly between specific platforms as well as within the same delivery model.
Reliability and Availability
The reliability and availability of communication systems are critical for robust collaboration tools and non-disruptive customer experiences.
Uptime and Availability
Leading UCaaS providers offer financially backed service level agreements (SLAs) guaranteeing 99.9% or higher application availability as cloud-hosted services. Redundant data centers help prevent downtime for distributed users.
On-premises solutions rely on an organization’s internal infrastructure and IT resources. While they enable complete control, businesses take on the burden of ensuring reliability themselves through redundant systems.
Business Continuity
In the event of internet or localized technical issues, cloud-based unified communication platforms leverage multiple data centers to maximize business continuity. UCaaS also simplifies remote workforce support.
With users concentrated in physical offices, on-premises systems are more prone to service disruption during power, connectivity, or on-site equipment failures. Updated disaster recovery systems are essential.
Maintenance and Updates
UCaaS platforms handle all back-end software upgrades and maintenance centrally. No user action is required, which ensures limited disruption to collaboration capabilities.
IT staff must manually upgrade on-premises communication tools and manage the risk of arising conflicts with existing workflows. Scheduled maintenance downtimes can also hamper user productivity.
While on-premise solutions provide greater oversight, UCaaS delivers maximum uptime to empower employees wherever they’re working from.
Security
Employee communication often involves sharing sensitive information, making security an important consideration. There are major differences in security models between cloud solutions and those hosted on-premises.
Data Security
Leading UCaaS providers leverage state-of-the-art data centers protected by robust security solutions (firewalls, intrusion detection, and data encryption protecting information). Service providers manage security so businesses can focus on core operations.
Organizations with on-premises systems have complete control and oversight of security protocols that safeguard information within internal data centers. However, the burden falls on IT teams to configure and update unified communications infrastructure and security tools.
Access and Authentication
Cloud communication platforms provide secure employee access to a wide range of cross-device collaboration tools. UCaaS centralizes access controls and makes it easier to monitor usage.
On-site UC leverages existing legacy authentication systems such as the Lightweight Directory Access Protocol or Active Directory. While it enables tighter directory integration, it relies on user security practices and provisioning processes within the company network.
Organizations must consider their security priorities, on-site staff capabilities, and whether or not they trust the cloud provider’s security promises.
Integration and Support
UCaaS providers supply 24/7 end user and technical support as part of the subscription model, and they handle everything from problem resolution to usage analytics. IT oversight is still retained but workload is vastly minimized.
Organizations using on-premises systems must hire specialists for daily system administration, monitoring, and troubleshooting. While offering complete control, on-site UC requires considerable investments in skilled IT staff.
Businesses relying heavily on common software will benefit most from UCaaS integration since support costs are tremendously reduced. However, businesses with unique integration needs may still prefer on-premises unified communications deployment.
Implementation and Deployment
UCaaS and on-premises unified communications have clear differences when it comes to deployment.
Implementation Timeframes
UCaaS solutions can be rapidly deployed—often in just a few weeks. Administrators simply provision user accounts and configure features through the provider’s intuitive centralized portal. This allows quick access to a full suite of communication and collaboration tools.
In contrast, on-premises deployments typically require several months to be completed. This expanded timeline involves several steps:
- Hardware purchasing
- Servers and cabling installation
- Legacy system integration
- Functionality testing
- Staff training
Installation Complexity
The installation process for UCaaS requires minimal IT effort. Users set up accounts through user-friendly administrative dashboards. These consolidated dashboards also enable license management, permissions setting, client configuration, feature adjustments, and more. Providers’ support teams can assist with any needed optimization.
On-premises installation involves significant complexity (server racking, network cabling, communications systems integration, endpoint provisioning, and intricate software configuration). Thorough IT architecture skills become critical for smooth on-premises deployment.
Key Features of On-Premises UC and UCaaS
Now that we’ve gone over the features of on-premises UC and UCaaS, consider your own business needs, capabilities, and limitations to make the right choice.
| Factor | UCaaS | UC |
| Cost | Lower upfront and operating costs with a subscription model. | Higher upfront costs for infrastructure and ongoing costs for support staff. |
| Features | Robust essential features out of the box. | More customizable features and proprietary integrations. |
| Reliability | High uptime backed by SLAs. | Control over reliability but risk of downtime. |
| Security | Managed provider security. | In-house security control and oversight. |
| Integration | Integrates common software easily. | Supports complex proprietary system integration. |
| Implementation | Rapid rollout in weeks. | Months-long implementation timeline. |
About Symplicity
At Symplicity, we understand the value of transforming your company through unified communications. We are experts in the latest communication technologies, service providers, and platforms.
If exploring modern UC for your organization interests you, let’s talk. We can:
- Assess whether UCaaS or on-premises UC best aligns with your use cases.
- Ensure smooth migrations away from legacy systems.
- Help realize the full benefits of communication modernization.
Not only can we help you with your UCaaS adoption, but we can also give your invoices a once-over to identify cost savings. Our technology expense management experts are extremely good at finding redundancy, waste, and (in many cases) money owed to you.
From contact center solutions to networks and mobile device management, we can modernize every aspect of your communications infrastructure.
UCaaS FAQ
How does UCaaS work?
UCaaS works by having the unified communications platform hosted in the cloud by a third-party provider rather than hosted on-premises. This allows access to features such as voice-over-internet protocol (VoIP), video conferencing, instant messaging, and other tools delivered over the internet via the cloud-service provider’s servers rather than a company’s servers.
What are the three main components of unified communications?
The three main components of unified communications are:
- Voice communications such as VoIP phone services
- Conferencing solutions for video and web meetings
- Messaging capabilities (instant messaging, SMS, and email)
Why should you use a unified communications solution?
You should use a unified communications solution because it enables seamless collaboration among employees regardless of geographic location and devices. It also is easier to manage with centralized administrative tools, reduces infrastructure costs by leveraging the cloud, and keeps all users on the same updated software version.
What are the differences between UCaaS and CCaaS?
UCaaS and contact center as a service (CCaaS) are both cloud-based solutions but serve different purposes. UCaaS connects an organization’s employees and facilitates team collaboration communication. In contrast, contact center service connects customer service and sales representatives to customers and focuses on providing seamless experience and sales performance.
While UCaaS streamlines inter-organizational communications, CCaaS includes additional tools such as advanced analytics and interactive voice response for managing customer engagement.
What is the difference between UC and VoIP?
Unified Communications is an umbrella term for the integration of communication essential tools such as voice, video, messaging, and collaboration into a single platform. VoIP is a component of UC that specifically refers to the delivery of voice communications and multimedia sessions over internet protocol networks.
So, VoIP is a subset of UC that focuses on internet-based voice calling, while UC encompasses a broader range of communication and collaboration technologies.
What is the future of UCaaS?
The future of UCaaS is likely to be shaped by the continued evolution of the hybrid model, where employees work both onsite and remotely. UCaaS platforms will need to adapt to meet the changing needs of the marketplace and offer more flexibility, scalability, and integration with other business applications.
The trend towards cloud-based solutions is expected to persist, with UCaaS becoming increasingly popular among businesses of all sizes for its ability to support dispersed workforces and enhance business continuity.
How do I choose the UCaaS provider?
When choosing the right UCaaS provider, you should compare partners on key aspects such as:
- Reliability guarantees
- Implementation timelines
- Integration capabilities
- Security standards
- Carrier integrations
- Total cost of ownership
- Customization options
- Mobile app quality
- Overall customer support responsiveness
What are the benefits of moving to VoIP?
The top reasons to switch to VoIP include:
- Substantial cost savings over traditional phone lines
- Scalability to easily add lines
- Built-in disaster recovery
- Increased employee productivity
- Upgraded call controls and management
- Integration of the phone with other systems
- Mobility features enable call access from anywhere
Further Reading
Understanding net promoter score
What is an integration platform as a service?
What are the different types of contact centers?
