If you are willing to shift your on-premise business to a cloud-based contact center, conduct research, gain an in-depth understanding of both, and choose the one that will meet your business needs and expectations.  

Cloud contact center is a cost-effective solution that provides exceptional customer service. It offers flexibility, stability, support integration capabilities, and advanced security. It also enables remote access. 

Meanwhile, you will have complete control over the data and resources in the on-premise contact center, decreasing the possibility of data breaches. 

Many businesses prefer cloud contact over the on-premise contact center due to its reliability, advanced features, and tangible impact on the industry.

This blog has discussed contact centers’ benefits, drawbacks, and limitations, aiding your choice between cloud-based vs on-premise contact center solutions.

Let’s get started. 🚀

What is a Cloud-based Contact Center?

What is a Cloud-based Contact Center

The cloud-based contact center is hosted by a third-party provider that effectively manages customer interactions, such as inbound and outbound calls. 

It interacts with customers via multiple communication channels, such as voice, email, or social media, and enables remote access to reach a global audience. It provides exceptional service to improve customer satisfaction.  

What is an On-premise Contact Center?

What is an On-premise Contact Center

An on-premise contact center is the traditional practice of operating a contact center, from setup and configuration to customer interaction, within its physical facilities.

In this case, you can have complete control over the resources, reducing the possibility of data breaches, but it requires in-house IT experts to set up and manage the system. Therefore, on-premise is expensive.  

Cloud-Based vs On-premise Contact Center: Key Differences

There is a significant difference between the cloud-based and on-premise contact centers. The key differences include:

On-premise contact centerCloud-based contact center
InfrastructureIt requires the installation of physical hardware and software.It is hosted off-site by a third-party service provider.
CostThe upfront, infrastructure, and maintenance costs are high.The provider handles all the upfront and maintenance costs.
AccessibilityIt has limited remote access.Agents can access remotely, allowing flexible work schedules. 
Integration CapabilitiesCustomized integration might require additional effort.It supports integration with pre-built interfaces and APIs.

Pros and Cons of Cloud-based Contact Center

A cloud-based contact center is the ideal choice to enhance the customer experience. Many businesses prefer the cloud-based over the on-premise contact center because of its advantages. The advantages include the following:

  • It has better features with excellent reliability, scalability, and flexibility.
  • It is cost-effective.
  • It supports unified communications and enhances the customer experience.
  • It supports remote work.

Besides the many advantages, you must also consider the disadvantages while choosing the cloud-contact solution. The Disadvantage includes:

  • It requires high-speed internet connectivity.
  • It provides limited information on call location for emergency calls.
  • Costs can rise.
  • Loss of control over the system.

Pros and Cons of On-premise Contact Center

The pros of on-premise contact center include:

  • Complete control over the system
  • Data Security
  • Low latency

The cons of choosing the on-premise contact center are:

  • It requires higher expenses on the upfront cost of hardware and licenses.
  • It provides limited remote access.
  • The integration may require additional effort.
  • It takes adequate time for the setup and implementation.

Top On-premise Call Center Software Solutions

The enhanced service offered by the on-premise call center software will impress you. However, it needs to address real-time requirements. The top four on-premise call center software solutions include. 

1. Avaya


Avaya is a cloud-based and on-premise service solution developed to reduce toll-free charges when customers call from their mobile phones. It will also efficiently route your calls and offer personalized communication to repeat customers.

The features of Avaya’s software solution include:

  • It supports omnichannel communication.
  • It facilitates unified communication.
  • Customizable desktop interface. 

  The limitations of Avaya’s solution include:

  • The implementation and management of Avaya can be complex for a business without specialized IT experts.
  • The Avaya solution’s upfront, maintenance, and upgrade costs can rise.

2. Atos


Atos is a software solution that both large and small organizations can use. In a small organization, it can manage around 100 agents. A large organization can support up to 1500 agents per system and 7,500 agents by installing other software.

The features of Atos software solution include:

  • Chatbot integration
  • UCaaS integration
  • Customizable interactive voice response  

The limitation of Atos’s include:

  • Poor management 
  • Short-term agreements

3. Hubspot


HubSpot software solution will lead to an increase in customer satisfaction. It provides them with advanced and easy-to-use tools. Additionally, it offers insightful reporting to assist your team in enhancing the customer experience. 

The features of Hubspot include:

  • Email Marketing
  • Robust and analytics features
  • Integration capabilities

The limitations of the Hubspot include:

  • Limitation in customization.
  • Scaling challenges

4. Acefone


Acefone is an on-premises solution that offers call center and PBX services. Its user-friendly layout, ease of use, and quick configuration make it an excellent choice for any business. It provides customized remote solutions and 24/7 support and automates the quality of customer interaction. 

The features of Acefone include:

  • Easy Deployment
  • VoIP phone system
  • Unified communication

The limitation of Acefone include:

  • Call recordings are unclear
  •   It does not operate smoothly on iOS.

5. Mitel MiContact Center

 Mitel MiContact Center

The Mitel MiCount center is an on-premises solution for small and medium-scale organizations.

The features of Mitel MiCount Center include:

  • Call Recording
  •  Real-time reporting

The limitations of Mitel MiCount Center include the following:

  • Integration challenges
  • Complexity of Implementation

Top Cloud-based Call Center Software Solutions

A third-party provider operates the cloud-based call center software. Therefore, the company does not have to hire IT experts for complex setups. Furthermore, they do not have to stress about the failure of the operation or upfront and maintenance costs.

The top five cloud-based call centers include:

1. Dialaxy


Dialaxy is a cloud-based telephony system software that helps customers manage their personal or business telephony needs from a single site.

It provides fast and reliable telephony service, enabling your business to reach a global audience via virtual phone numbers. It is cost-effective and has excellent scalability features suitable for all small or large-scale businesses. 

Additionally, Daialxy helps your agents work better, improving their efficiency and boosting your business’s productivity by streamlining the workflow’s automation.

The features of Dialaxy include:

  • Call  Features
  • Voicemail Features
  • SMS Features
  • Contract Features
  • Agent Features
  • Easy to use

The limitations of Dialaxy include:

  • Integration capabilities are still in progress

2. Cloudtalk

The cloud-based call center- cloudtalk, provides a unique feature to improve the customer experience. The innovative call center offers over 70 features. Furthermore, it supports the integration of CRM and helpdesk to provide a compelling business calling experience.

Cloudtalk is integrated with analytics that optimizes the agent’s performance. Automating the streamlined workflow helps to enhance the efficiency of the calling experience. 

The features of Cloud Talk include:

  • It has AI-powered features
  • Voice mail
  • Three ways calling
  • Streamline the inbound and outbound calling

 The limitations of cloud talks include:

  • It has limited automation
  • Steep Learning Curve
  • Low call quality

3. Ring Central

 Ring Central

Ring Central is an on-premises cloud contact center that streamlines cloud communication. Setting up, using, and managing these tools in a single app is affordable and accessible. 

Furthermore, this app can be accessed from any device, such as a PC, smartphone, desk phone, or tablet, and helps to unify calling, messaging, and meeting with employees and customers.

Additionally, it makes decision-making easy with powerful IT tools that help your business run effectively.

The features of Ring Central include

  • Advanced phone system
  • Unlimited Team messaging
  • Integration capabilities

The limitations of RingCentral includes:

  • Limited flexibility
  • It requires longer implementation times
  • Basic reporting and analytics
  • The video message does not include the basic package

4. Nextiva


Nextiva is one of the best VoIP phone services that helps grow your business by quickly connecting agents with more callers. It is a user-friendly solution where you can talk, text, and video chat with teammates and customers from anywhere using any communication platform in different time zones. 92% of customers recommended the use of Nextiva. 

The features of Nextiva include:

  • Advanced Call Routing
  • Call Recording and Rating
  • Three-way calling
  • Free Toll-Free Phone Number
  • Auto Attendant

The limitations of Nextiva include the following:

  • It lacks the voicemail transcription
  • Video conferencing is difficult
  • Does not work with the iOS app or iPhone.

5. Zendesk

Zendesk is one of the oldest software-as-a-service (SaaS) cloud-based solutions. It assists you in tracking customer interactions via a multi-channel system, making it one of the best solutions for improving the customer experience in your call center business. 

The Features of Zendesk include:

  • Reporting and Analytics
  • Sales CRM
  • Live Chat
  • Automatic ticket creation

The limitations of Zendesk include:

  • Low call quality
  • Slow updates
  • Complex interface

Choosing the best fit for your business

Choosing the best on-premise and cloud contact solutions depends on your business requirements. Analyze your customer’s business needs, objectives, and expectations before deciding on options for on-premise or cloud-based contact solutions. 

The on-premise contact solution allows you to control your resources more, while the cloud solution provides greater scalability and is cost-effective.

However, many businesses are shifting to a cloud-based solution because it is cost-effective, does not require physical setup, allows remote access, and provides greater scalability to enhance the customer experience. 

Dialaxy’s cloud approach

Dialaxy is a cloud-based solution that enables your business to connect with a global audience. It is a great cloud-based solution for small businesses, sales, educational fields, hotel lines, insurance, etc. 

It has features such as phone calls, voicemail, SMS, and contact that help streamline your business effectively. You can choose a pricing plan that meets your business requirements. The essential strategy is tailored for small teams at $16.99 per month, and the standard plan is for larger teams at $17.99 per month. Additionally, it provides you with a seven-day free trial.

Your business can easily upgrade or degrade the subscription plan. It provides necessary support, such as training and help with onboarding, for a seamless transition. Therefore, Dialaxy is one of the best approaches for your business growth.


Both the cloud and on-premise contact centers have advantages and disadvantages. Choosing between the on-premise and cloud-based contact solutions depends on your business requirements. Over time, the cloud-based contact center has gained popularity due to its advanced features that enhance the customer experience at a cost-effective price. 


Why is the cloud better than on-premise?

The cloud contact center is better than the on-premise contact center because of its greater flexibility and scalability features. The software solution can quickly scale up depending on your business requirements. The cloud contact center is operated by a third-party provider, reducing the upfront and maintenance costs. It further has integration capabilities. Therefore, the cloud contact center is more favorable than the on-premise one. 

What is the difference between a cloud and an on-premise contact center?

 A third-party provider hosts the cloud contact center. It is a cost-effective solution that does not require the physical deployment of hardware and software. Meanwhile, the on-premises contact center handles all the customer interactions within its company’s agents. It needs to invest in the upfront and ongoing maintenance of the system. They further differ in integration capabilities, security, control over data, and more. 

What are the three significant advantages of cloud computing?

The three advantages of cloud computing include:

  1. It is cost-saving
  2. Excellent Flexibility and Scalability
  3. Advanced Security

What are the three advantages of cloud storage?

The three advantages of Cloud storage include the following points:

  1. It is easy to setup
  2. It supports remote access
  3. It has excellent reliability and scalability.
Prasanta Raut

Prasanta is the founder and visionary CEO of Dialaxy. He is on a mission to redefine the landscape of SaaS solutions, infusing creativity and ingenuity into every aspect of Dialaxy’s offerings. His fervent dedication to simplifying sales and support processes drives Dialaxy’s forward momentum, delivering unparalleled value to businesses of all sizes. Embark on a transformative journey with Prasanta and Dialaxy as they pave the way for a new era of sales and support excellence.

Prasanta Raut

Prasanta is the founder and visionary CEO of Dialaxy. He is on a mission to redefine the landscape of SaaS solutions, infusing creativity and ingenuity into every aspect of Dialaxy’s offerings. His fervent dedication to simplifying sales and support processes drives Dialaxy’s forward momentum, delivering unparalleled value to businesses of all sizes. Embark on a transformative journey with Prasanta and Dialaxy as they pave the way for a new era of sales and support excellence.