On Premise VS Cloud: Which is the best solution for your contact center?

What is a cloud-based contact center solution?

Unlike traditional on-premise solutions, which require hardware and software to be installed on the company’s premises, cloud solutions are hosted on the Internet. They rely on computing resources hosted on remote servers managed by the software publisher.

One of the key advantages of cloud solutions is their accessibility. Agents can connect to the system from anywhere: all they need is an Internet connection. This makes it possible to set up a decentralized contact center organization based on remote working, or homeshoring.

Another key advantage is scalability. With a cloud solution, resources can be adjusted in real time according to variations in call volume. This means companies can effectively manage peaks in activity without compromising service quality.

In financial terms, cloud solutions offer greater cost control thanks to their pay-as-you-go pricing model. There’s no need to invest heavily in infrastructure, as spending is aligned with real business needs. In the software world, the cloud is both a distribution method and a business model.

Last but not least, cloud solutions promote interoperability with other business tools through connectors or APIs. A cloud-based contact center solution integrates much more easily with other tools in a company’s information system than an on-premise solution.

To go further, discover 3 reasons to use cloud call center software.

What is an On-Premise contact center solution?

An on-premise solution means that the entire technological infrastructure required to run the contact center is installed directly on the company’s premises, on its own servers. This is also known as self-hosting.

One of the main advantages of an on-premise solution is control. The company retains complete control of its system, from initial configuration through to day-to-day maintenance. This means they can tailor it precisely to their needs and business processes.

This increased control often goes hand in hand with greater data security. With an on-premise solution, sensitive information remains within the company’s perimeter, which can be a prerequisite for some organizations, particularly those subject to strict regulations.

But this autonomy comes at a cost. On-premise solutions generally require a substantial initial investment to purchase and install the equipment. Added to this are the recurring costs of maintenance, upgrades and bug/failure management, which remain the responsibility of the company.

Another challenge for on-premise solutions is scalability. Upgrading the infrastructure to meet increased call volumes is often complex and costly, as it often requires the acquisition of new equipment.

On-premise contact centers can also pose difficulties in terms of remote working. Agents must be physically present on the company’s premises to access the tool. 

On-Premise vs. Cloud contact center solutions: what are the differences?

Cloud contact center solutions are hosted on the internet and accessible from a web browser, unlike on-premise contact center solutions which require software to be installed on company computers. But that’s not the only difference. This table summarizes the main differences.

Installation

Deploying an on-premise contact center is often a long and complex process. First, requirements must be precisely defined, then the necessary hardware and software selected, acquired and installed. Next, the entire system must be configured and integrated into the company’s information system. 

All this mobilizes significant internal resources, especially IT teams. Setting up an on-premise contact center usually takes several months.

In comparison, setting up a cloud solution is much faster and simpler. As the infrastructure is already in place with the supplier (the editor), deployment mainly consists of configuring the solution according to the company’s specific needs, then training the teams to use it. No hardware installation is required.

A cloud contact center solution can be up and running in a matter of hours or days at most.

Variable and fixed costs

In terms of costs, the differences between on-premise and cloud are very significant.

Deploying an on-premise contact center requires a substantial initial investment in servers, agent workstations, software and so on.

In addition to these acquisition costs, there are the recurring costs of maintaining and updating the infrastructure, as well as the energy and human resources required for its administration. 

Because these costs are largely fixed, they weigh heavily on the company’s budget, irrespective of the level of actual contact center use. 

The cloud business model, on the other hand, is based on a subscription with a predictable recurring cost. Companies pay on a pay-per-use basis, according to the number of agents connected and the functionalities used.

Infrastructure costs are shared between customers and borne by the solution’s publisher, offering much greater flexibility for the corporate customer. Companies can adjust their subscriptions according to their level of activity. 

The distribution between fixed and variable costs is therefore very different depending on whether you choose a cloud or on-premise solution: 

• On-premise contact center solution: costs are largely fixed.
• Cloud contact center solution: variable costs are much higher.

Integration with other business tools 

Integrating the contact center with other corporate tools (CRM, ERP, helpdesk tools, etc.) is essential to deliver a fluid, consistent customer experience across all channels. 

With an on-premise solution, these integrations have to be custom-developed by in-house IT teams or by specialist service providers. The process is often long and complex, especially when the various systems were not designed from the outset to communicate with each other. 

What’s more, each update to one or other of the tools can potentially “break” the integration and require new developments.

In contrast, cloud solution providers offer numerous native connectors to the most common applications on the market, as well as open APIs that make it easy to develop specific integrations.

As a result, a cloud contact center solution is much more easily interfaced with third-party tools. The cloud facilitates interoperability and data circulation between information system tools.

Solution reliability 

Another important difference between on-premise and cloud is software availability, and therefore reliability.

As we all know, ensuring contact center service continuity is a major challenge. Every minute of downtime can mean missed opportunities and lower customer satisfaction. 

With an on-premise solution, it is once again the company that is responsible for the availability and performance of its infrastructure. This means setting up backup systems, securing data, monitoring equipment 24/7 and being able to intervene rapidly in the event of breakdown. 

By choosing a cloud solution, the company transfers a large part of this responsibility to its supplier, i.e. the software publisher.

The major cloud players rely on highly secure datacenters designed to guarantee maximum service availability. They contractually commit to high service levels (SLAs), often in excess of 99.9%, and take responsibility for maintenance, upgrades and incident management. 

This enables the company, the customer, to benefit from a reliable infrastructure, without having to bear the cost and complexity. 

Flexibility (Adaptability and scalability)

Flexibility refers to the contact center solution’s ability to adapt to changing business needs and activities. Here, too, the differences between on-premise and cloud solutions are significant.

With an on-premise solution, flexibility is often limited by the capacity of the physical infrastructure. Increasing capacity to handle a sudden spike in activity requires the acquisition and installation of new servers, a time-consuming and costly process. Similarly, deploying new functionalities (a voicebot, a new channel, etc.) can require a complex system upgrade.

In this area, cloud solutions do much better, and resources can be more easily adjusted to demand. It’s relatively simple, for example, to add new agents. No infrastructure changes are required.

New software features and patches are deployed continuously and automatically by the software publisher. 

When should you opt for a cloud contact center solution (vs. On-Premise)?

The choice between an on-premise vs. cloud contact center solution depends on a number of factors: company size, business sector, growth objectives, regulatory constraints, and so on. 

However, one thing is clear: cloud solutions are increasingly becoming the new market standard.

We have reviewed all the advantages of the cloud: speed of deployment, flexibility, scalability, interoperability, better cost control…These advantages meet today’s contact center challenges.

With a cloud solution, companies can quickly set up a high-performance contact center without having to invest heavily in technological infrastructure. 

They can agilely evolve their system according to their needs, for example by adding new communication channels or deploying new functionalities. Entrusting infrastructure management to the software publisher allows companies to concentrate on their core business and the quality of their customer relations, without having to worry about technical aspects. 

Although there may still be rare situations where the “on-premise” option is feasible, notably for certain large companies with very high interaction volumes or specific regulatory constraints, the choice of on-premise implies numerous compromises. You need to be aware of this.

Opting for an on-premise solution often means :

• Forgoing the flexibility and rapid scalability offered by the cloud
• High infrastructure and maintenance costs
• Accept longer lead times for the deployment of new functionalities
• Limiting the possibilities for agents to work remotely
• Assume responsibility for system security and availability

The current market trend is clearly towards the mutualization of all tools in the cloud, including for large enterprises and regulated sectors. Modern cloud solutions now offer levels of security, compliance and customization that meet the most stringent requirements, while retaining the advantages inherent in the cloud model.

When should you migrate from an on-premise solution to a contact center cloud solution?

Migrating an on-premise contact center solution to the cloud is a strategic decision that is becoming increasingly important for companies looking to improve their agility, flexibility and efficiency. But when is the right time to migrate, and how do you go about it?

There are several signs that it’s time to move to the cloud:

• When on-premise infrastructure reaches the end of its useful life, and heavy investment is needed to renew it.
• When a company wants to modernize its contact center to offer an omnichannel customer experience, but its current system isn’t flexible enough.
• When the company needs to rapidly upgrade its contact center (opening up new channels, integrating AI, etc.), but the time and cost involved in in-house development are too great.
• When the company wants to enable its agents to work remotely, but the on-premise infrastructure doesn’t allow it.

Conclusion: On-premise vs. cloud, who’s the winner?

From all the above, the answer is unequivocal: contact center solutions in the cloud offer decisive advantages over traditional on-premise solutions. It’s the way the story goes: cloud solutions’ speed of deployment, flexibility, scalability and subscription-based business model make them the right choice for most businesses today.

The cloud is becoming the new standard for contact center solutions.

We have developed Diabolocom, a contact center solution based on the cloud and artificial intelligence, to meet today’s business challenges.

Thanks to its extensive functionality and advanced integration capabilities, our platform enables companies of all sizes to modernize their contact centers, improve operational efficiency and gain agility, while controlling costs.

If you’d like to take your contact center to the next level, contact us to find out how Diabolocom can help you achieve your goals.