If you’re thinking about purchasing a new small business phone system, all the terminology can be quite confusing! Cloud-based phone systems, VoIP, premise-based… it almost feels like going back to school to learn about them all. How is the savvy business owner to make the right decision?


Consulting the business phone installation experts at Central Telephone is one way to go about it. We’ll work with your business to find a system that’s both within your budget and fulfills the functions you need. We’ll start with this blog post! Below, we discuss two common phone choices for small businesses—cloud-based VoIP versus premise-based VoIP—and which one could be the right fit for you.

What on Earth is VoIP?

VoIP stands for Voice Over Internet Protocol, but it’s sometimes referred to as simply “internet telephony.” As the name suggests, via VoIP, you use the Internet to transmit your calls instead of seperate phone technology. This oftentimes makes operating a VoIPsystem much cheaper than operating a landline, and it also, in some circumstances, allows your employees to take business calls from their personal cell phones. This makes it a great choice for both larger and smaller businesses alike.

Premise-Based or Cloud?

Premise-based VoIP systems are housed on-site—that is, in your business’s office building. You’ll need to provide room for all associated hardware and software, so be prepared. Cloud-based phone systems, on the other hand, are housed off-site, typically at a communication company that is responsible for the upkeep.


Well, that’s quite informative, but what is the better choice for your business?


●        Small businesses often prefer cloud-based. Space constraints can be a hassle to deal with when you run a small business, especially when it comes to phones. Moreover, if you don’t have a fully staffed IT department, many small businesses can use the help of the experts that run cloud-based phone systems.

●        Large businesses often prefer premise-based. With space available and a fully staffed IT department, larger businesses often appreciate the control that housing their phone system on the premises gives.

●        VoIP is a useful technology regardless. Large and small businesses alike appreciate the money-saving power of making calls over the internet.

Still Have Questions? Central Telephone is Here to Help

We’re a Plymouth cloud-based installation firm that would love to answer any phone-related questions you may have. To find out more about our products or schedule service in Minneapolis, Minnesota, call us at 763-550-2000. You can also send a message to info@centraltelephone.com.