Premise vs. Hosted

We are often asked by our clients and prospects, “Is a Hosted system more appropriate for us than a Premise-Based system?” Our answer is always… it depends. There are a number of exploratory, discovery questions to be considered in order to properly determine if your company or organization would be best served with a Hosted system or a Premise-Based system. Thus we engage OMNIA’s Process.

OMNIA’s Service Process seeks to determine the various operational aspects of a client’s company. Some discovery questions we consider include: How does your company use current Communication Technology?; What are your company’s goals for new Communication Technology?; How does your company operate and interact with remote offices and/or vendors and suppliers?; What are your company’s plans for evolving in the future? OMNIA’S Process is utilized to assist in determining your company’s telecommunication requirements and needs.

A key overall question: How many remote office locations do you have and how many employees/users are in each location? The answer provides pivotal information in OMNIA’s Process. If your company has many locations but has only a few employees/users at each site, then a Hosted system is the preferred option. If, however there are many locations with many employees/users at each site, a Premise-Based system may be best and thus becomes the preferred option. It is a simple calculation of return on investment over a 3, 5 or 10 year period. As an example – A company with multiple locations and many employees/users at each site will spend 30% – 40% less over a 5 year period with a Premised-Based system rather than a Hosted system. Of note is that a Premised-Based system is a one-time purchase whereas a Hosted system is a monthly service for as long as you engage the service.

Another key question: Does your company favor funding a new phone system using Capital Expenditure (CAPEX) or paying for this type of service through operational costs (OPEX)? Though CAPEX spending has been predominantly used in the past, the new Hosted technologies are designed as a ‘pay-as-you-go’ OPEX service. This is typically much less burdensome than financing a large system purchase and implementation.

Through OMNIA’s Process, additionally pertinent questions relate to the implementation process, such as: How do you foresee your company’s IT Department engaging in the implementation of either a Hosted or a Premise-Based system?; What is the IT Department’s availability of time as well as depth and breadth of knowledge to manage the implementation?; How familiar/comfortable is the IT Department with this technology and it’s benefits?; Will the IT Department be onboard with the fiscal reasoning for choosing one technology over the other?

In our process of determining the best system – Host or Premise – for your company, one question leads to another toward making certain we achieve the best fit for your company. It is important to recognize that these are not casual conversations. The experience of responding to 25-30 exploratory, discovery questions is significant in determining your company’s current and future telecommunication needs, and decision-making around Host or Premise Systems to best serve your company’s requirements and needs.

The most important consideration in this process, no matter which Telecommunication System you choose – Host or Premise, is that it should transform your operational efficiencies. That is our goal for your company.

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