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The cloud is transformational. Thanks to technology advances that enable the virtualization of large IT components, businesses are saving money and increasing speed and agility. In particular, cloud-based communications have figured prominently in the redesign of the IT landscape. While some IT professionals have embraced cloud communications, others have willingly or out of necessity stuck to on-premises PBX systems.

Both approaches have their pros and cons. Let’s take a look at how those transpire across two major categories: costs of installed PBX systems and phone system reliability and continuity:

Costs Of Replacing, Expanding And Upgrading PBX Systems


Pro: Save on costs in years when no major software upgrades are conducted and hardware doesn’t need to be replaced.

Con: Replacement cycles are getting shorter and capabilities are advancing at an accelerated rate, so plans for PBX technology upgrades can easily be upset. Surprise compatibility issues can pop up when an integrated system undergoes an update, forcing an unplanned upgrade. What’s more, on-premise PBX servers can simply break down. Even unexpected business growth can upend IT budgets predicated on lower system usage, as on-premise PBX systems are not scalable.


Pro: Costs are predictable. Most cloud communications providers charge on a simple per-user basis per billing period. Plus, hosted PBX systems can scale up with business growth; simply add user licenses as needed. Software updates are included and compatible with most cloud communications systems.

Con: No potential budget breaks, like are possible with on-premise PBX systems. Depending on your carrier, phone system changes may be delayed, and you may not be provided control through a portal.

Phone system reliability and continuity

Pro: Internal administrative control of a probable robust system.

Con: Unless an organization has ensured service reliability and continuity along the lines of a Tier 4 data center—with dual-powered cooling equipment, multiple independent distribution paths or fault-tolerant infrastructure—it is subject to forces outside its control, like a tornado or an electrical grid outage. 


Pro: Monitoring the system for service levels is not necessary.

Con: A sub-par Internet service provider can critically disrupt your phone system, subjecting it to dropped calls and connections. If the Internet goes down, you lose voice and Internet (but incoming callers will still be able to access voicemail, and you can retrieve those messages).

Luckily, you don't have to choose between the two. Star2Star's revolutionary cloud architecture combines all of the benenfits of both on-premise and cloud-based systems. You get the reliability of on-premise solutions with the cost savings and feature suite of the cloud.

Other benefits of Star2Star include:

Disaster Recovery: When it comes to disaster recovery, Star2Star systems are superior to on-premises ones because they survive! If a company’s facility experiences a failure of its on-premise PBX system due to a natural disaster, it will have to rebuild it from scratch. Conversely, a Star2Star system allows businesses to get up and running like nothing happened because the setup is always available.

BYOD Support: On-premise PBX systems and other cloud-based solutions may find it difficult to keep up with the speed of upgrades in the consumer product market, making it extremely difficult to support users who want to use their own personal devices for work. This is especially true for mobile devices and tablets when new standards force software or hardware upgrades. A top provider like Star2Star is not limited by these issues, as it can easily update software to meet common subscriber compatibility issues, like mobile and tablet support, and push the updates automatically to the companies it serves. 

Multiple Locations: The capabilities of multiple locations with on-premise PBXs may be lost to interoperability issues, and productivity may be lost to inefficient communications. Furthermore, getting every location onto a single standard would take a Herculean effort. Star2Star systems, on the other hand, benefit from standardized capabilities and total interoperability across locations.

Staff Requirements: The benefit of Star2Star in this category is short and sweet: IT has little to no responsibility for running or maintaining the system. Organizations need never worry about IT staff getting sick, quitting, or simply falling short of expectations.

In transformational game changing times such as these, the ability to adapt your business to allow for greater innovation—instead of being mired down in IT equipment and maintenance responsibilities—is key to ongoing success. 

Find the choice that fits your company’s needs the best. Star2Star offers feature-rich, full spectrum communications solutions for companies and budgets of every size.

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