Stay Home or Go Cloud? What’s The Real Cost of an On Premise Contact Center Solution

By admin, Platform28 on December 1, 2016

There’s no question that the wave of companies moving aggressively to implement cloud call center and contact center solutions is growing rapidly. Over the last couple of years there’s been strong double digit growth in the cloud market while the premise-based market experiences negative growth. Analyzing those numbers more closely provides interesting insight into the size and type of organizations that are making the move.

Enterprise companies are leading the cloud migration. We’re seeing companies pushing for complete, true cloud strategies. (They’re no longer satisfied with a ‘trial’ cloud footprint or hybrid models unless it’s a cost-effective roadmap to get off of their prem gear and licenses).

Once enterprises understand that a move to the cloud allows them to improve uptime and security while innovating quickly, questions then focus on the actual and perceived costs of making the move.

These are conversations we have every day with our enterprise customers, most of whom have made big dollar investments in licensing, infrastructure and staffing their communications infrastructure. There are many elements to consider when weighing a move to the cloud, below we will discuss many of the subjective and objective criteria.

On the surface, a premise solution may seem less costly because of lower per license costs. This is especially true if you are currently using a premise solution and have existing hardware, but, in reality, premise solutions are rarely cheaper regardless of existing hardware. Any call center solution requires extensive behind the scenes support. The real question is, “Would you like to provide all of the behind the scenes support, maintenance and overhead, or do you want to rely on the expertise of your partner to manage it while you focus on your core business?”

A cloud solution will have greater per license costs. However, with a premise solutions, you can expect additional costs:


  • Initial hardware purchase
  • Maintenance and replacement of hardware
  • Increased office space
  • Networks and sufficient bandwidth
  • Utility costs

Increased IT staffing

  • Maintenance of hardware and performance optimization
  • Upgrade and patch implementation and integration with existing changes applications
  • Customization of software to meet specific needs
  • Redesigning and managing integrations with new software
  • Maintenance and upgrade of security and networks
  • 3rd Party Partner – Many premise solutions will suggest 3rd party vendors to help with implementation and customization

All of these costs will also come with the increased staffing, training and overhead costs needed to manage a premise solution.

Additional Costs and Headaches

In addition to direct financial costs associated with a premise solution, there is an increased risk for lost revenue due to downtime.  Pure cloud solution partners will have multiple locations with redundant hardware. You should rarely, if ever, experience downtime related to hardware malfunctions, weather and natural disasters. There is also the wasted effort that comes with budgeting and planning for all of these efforts.

Evaluating the Options

The wave of companies, especially enterprises, switching to the cloud, seeking to improve their uptime and overall customer experience is continuing to swell.  The great news is that joining the wave saves money, time and reduces headaches in the long run.

If you aren’t already on the wave, now is the perfect time to join!

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