On-Premise & Cloud-Based Contact Centre Solutions: the Cost Benefits

If you’re on the hunt for the best contact centre solution for your company, you’ll need to do a cost-benefit analysis of the options. To help you with that, we’re going to weigh up the costs associated with both on-premise and cloud-based solutions.

Installation Costs

When it comes to installing an on-premise solution, it can be time-consuming. Whether it’s hiring the experts to handle the installation or taking IT staff away from their usual tasks to manage the fitting of the system, there are costs involved.

You’ll also have to spend time and resources researching. After all, this is the only way to find the best hardware —servers, headsets, phones, computers, etc. — for your business.

You may also have to shell out for licensing and integrations to ensure your current software works seamlessly with the new system.

What About the Cloud-Based Solution?

With regards to installation costs for a cloud contact centre, it’s pretty simple. There is none (other than your monthly subscription payment). You don’t have to purchase any hardware; as such, a cloud-based solution should work out of the box.

Operational and Ownership Costs

With an on-premise system, operation and ownership costs are relatively high. As we’ve just explained, you’ll need to purchase a fair amount of kit to get up and running. The unfortunate thing about that is technology is always advancing; so now and then you’ll have to fork out for hardware upgrades, and more often than not, software updates to complement the improved machinery.

And Cloud-Based Ownership Costs?

As you don’t need extra hardware, you don’t incur the expense of managing additional machinery. This system doesn’t cost much in the way of operation and ownership costs; however, you have to invest and maintain a reliable internet connection. Otherwise, the cloud-based solution won’t work to its full capacity.

Scalability Costs

If your business is rapidly expanding, an on-premise call centre solution might be a substantial financial outlay to scale. Namely, because you’ll have to invest in additional hardware and infrastructure to expand the system.

With a Contact Centre as a Software (CCaaS) solution, scaling is undoubtedly easier, as you only depend on your provider’s servers. But, you might have to upgrade to a more extensive package with your CCaaS provider.

On the whole, this isn’t (usually) as expensive as purchasing new hardware.

Costs in the Long Run

Fans of the on-premise solution argue that in the long run, this is the cheaper system. It stands to reason, once you’ve purchased the hardware — providing you’re not scaling or upgrading your equipment anytime soon — you’ll eventually save money in comparison to shelling out for monthly or annual CCaaS subscriptions.

But, there are lots of moving pieces, so this isn’t always the case.

On the whole, it seems clear cloud-based solutions are more cost-effective, because they’re an out-of-the-box system, so there are next to no installation costs; you don’t need to invest in expensive hardware, there aren’t as many maintenance costs; monthly subscriptions tend to be more manageable for businesses; and it’s cheaper to scale a cloud-based solution.

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