5 Reasons On-Premises Telephony is Still Essential

Recently Tom Arbuthnot of Empowering. Cloud wrote a fantastic whitepaper about the reasons on-premises telephony remains important, even as so many organizations move to cloud-based phone services (UCaaS) from Teams, Zoom, Webex, RingCentral, etc. A recent Cavell survey pointed out that less than 30% of all businesses have moved their phone system to the cloud. Tom’s whitepaper points out many of the salient reasons why organizations need help getting there. I wanted to share a summary of his findings and a link to the entire whitepaper, in case you missed it. 

Summary of challenges:

One of the primary reasons for maintaining on-premises telephony is site resilience and disaster recovery. For mission-critical telephony services, organizations need to ensure continued service even during internet or UCaaS provider issues. Solutions like Microsoft Teams' Survivable Branch Appliances (SBA) and Zoom's Phone Local Survivability (ZPLS) offer on-site equipment that provides continued telephony service during outages.

For global organizations, a lack of reliable internet connectivity is still a serious concern. Many countries, particularly in Africa, the Middle East, and parts of Asia and South America, still rely on traditional switched PSTN networks due to unreliable internet/IP networks. In these areas, maintaining dedicated local PSTN connectivity ensures consistent call quality and reliability, providing business continuity during internet outages.

Regulatory Compliance

Regulatory requirements also play a significant role in the need for on-premises telephony. A surprising number of countries still mandate that telephony providers have a local business presence to offer phone numbers and services within their borders. In such cases, organizations may need a local Gateway or Session Border Controller to terminate the telecom provider’s connection, even when moving to a UCaaS service.

Many businesses must retain systems or devices that require physical connectivity, such as PA systems, elevator phones, and existing PBXs. In many cases, these simple tools are tightly integrated into business processes or safety and security systems. These endpoints often require a local SBC or Gateway.  

Lastly, critical infrastructure sectors like government, defense, utilities, and other essential services have specific needs and regulations that necessitate on-premises phone connectivity. These organizations often opt for a hybrid approach, using UCaaS for non-critical roles and maintaining on-premises PBX systems for critical communications. This hybrid model offers reduced complexity, cost efficiency, and streamlined maintenance and security.

Conclusion

While the transition to cloud-based telephony systems is undeniably reshaping the telecommunications landscape, on-premises telephony connectivity remains crucial for various organizations. As businesses navigate the complexities of digital transformation, there are still essential use cases for premises-based services.

Download the Whitepaper