Shifting from On-Premise to Cloud: Why an ISP’s Future is in a SaaS or PaaS Model
Moving Past the Server Room: Why Cloud Models Are Non-Negotiable
In this world of infrastructure, On-Premise vs Cloud is no longer up for debate. Cloud has won, and today every company – from a local startup to a huge corporation – is thinking of online presence with how fast it can move operations from on-premise to SaaS/PaaS models. Before making that leap, the specific understanding of on-premise PBX limitations are crucial, as it perfectly illustrates the flaws of all legacy infrastructure.
It’s not just about cost reduction; this digital shift is about survival in a world that requires instant scalability, global mobility, and 24/7 reliability. Companies currently tied to legacy on-premise infrastructure find themselves saddled with high maintenance fees, slow deployment times, and overall limited feature sets.
One perfect example of such critical migration is currently underway in the telecommunications sector. While Internet Service Providers (ISPs) are the backbone of our digital world, many still rely on outdated on-premise Private Branch Exchange (PBX) systems for their core communication needs. In this article, we’ll use the limitations of on-premise PBX systems as a powerful case study to illustrate why any business, including ISPs, must move to a robust SaaS or PaaS model as quickly as possible.
Limitations of On-Premise PBX
ISPs that still use on-premise PBX systems face a lot of challenges. On-premise PBX systems have a lot of limitations and here are some of those:
1. Cost Intensive
On-premise PBX systems are highly cost intensive. Before an organization installs an on-premise PBX system, they will need to purchase specialized hardware and equipment. Then they will need to hire an IT expert or a team of IT professionals and pay for the installation costs. They will need to bear maintenance costs on a quarterly or a yearly basis.
When all these costs make up for a substantial amount. It makes an on-premise PBX system untenable for small and medium businesses.
2. Limited Scalability
On-premise PBX systems offer limited scalability to its users. If they need to add new lines and extensions, they would need to buy more hardware and physical equipment to scale up.
In case they need to scale down their operations, then they would literally need to pull the plug on some equipment. That is not a good thing for businesses that aspire to expand their company operations to new markets and territories.
3. Limited Features
On-premise PBX systems come with limited features. Depending on the year of release, the features could either be manageable or outright outdated.
Many organisations use old on-premise PBX systems. And their features are extremely outdated and are no match for the contemporary systems and their features.
4. Slow Deployment
When it comes to deployment, on-premise PBX systems are extremely slow. The deployment can take days, or sometimes, even weeks. Every minute counts in business, but for many industries, such as healthcare, banking and finance, literally every second counts.
Is it wise to wait for days or perhaps even weeks? No. That puts on-premise PBX systems at a huge disadvantage.
5. Lack of Upgrades and Updates
Whether it’s upgrading, adding new features, or updating existing features, on-premise PBX systems don’t offer that provision.
Businesses that want to upgrade or update features and functionalities will either need to buy separate features and install those manually or purchase new PBX systems.
6. Risk of Downtime and Hardware Failure
On-premise PBX relies on physical infrastructure, connected devices, wired servers and network components. If there’s a natural calamity such as flood or cyclone or a human-made disaster such as fire accident, then it can destroy the hardware and the operations come to a standstill.
Relying on on-premise PBX in today’s time is just akin to putting all the eggs in one basket in a figurative sense.’
7. Offers Limited Mobility
On-premise PBX systems are pinned down by wired devices and infrastructure. But businesses are no longer tied up to a single place. Expanding to new locations, markets, and customer base is the name of the game.
In a time when remote working is the new norm and not an exception, mobility is no longer a “nice to have” thing but a “must have” feature.
8. Issues with Connection
As per a study, more than one-third of fixed-line users report three or more issues per month with their connection (speed or dropouts and more). On-premise PBX systems are more susceptible to errors due to various reasons.
ISPs that rely solely on on-premise PBX systems are more likely to have connectivity issues than the ISPs using SaaS-based and PaaS-based PBX.
Why Should ISPs Switch to SaaS or PaaS Models?
ISPs that use on-premise PBX systems would sooner or later have to switch to cloud-based PBX systems. It’s not a matter of if but when. They have two broad options to choose from. Of these, one is the Software-as-a-Service model, while the other is the Platform-as-a-Service model.
Whereas SaaS models are ready-to-use applications hosted in the cloud, PaaS models provide the base upon which custom e-commerce development and deployment of applications should be built to address the needs of a specific ISP. However, both models offer many advantages to ISPs of all types and sizes. Those are:
1. Uninterrupted Connectivity
Noted computer scientist Tim Berners-Lee rightly said “I myself feel that it is very important that my ISP supplies the internet to my house like the water company supplies water to my house. It supplies connectivity with no strings attached.”
That’s what cloud-based IP PBX is all about. ISPs that switch to SaaS or PaaS models benefit from uninterrupted connectivity. Whether it’s rain, shine or any inclement weather or critical situation, the connectivity is always stable.
2. Greater Mobility and Remote Working Capabilities
ISPs serve a wide array of customers from across the globe. They have employees in many locations.
Using on-premise PBX systems is not prudent for them. ISPs that switch to SaaS and PaaS models benefit from greater mobility. They enhance the remote working capabilities of their team members across multiple locations.
3. Huge Cost Savings
Would you be surprised to know that SaaS-based IP PBX software and PaaS-based IP PBX software are much more cost effective than on-premise PBX systems? You definitely shouldn’t!
Being hosted on cloud, SaaS-based and PaaS-based PBX need no specialized hardware, equipment, or dedicated development team. They can work on simple computer systems. ISPs that switch from on-premise PBX to SaaS or PaaS cloud-based IP PBX software enjoy huge cost savings. All they need is some basic equipment and hardware and they are good to go.
4. Lightning Fast Deployment
When ISPs sign up with PBX providers, they want to be onboarded as well as up and running as quickly as possible. It’s not possible with on-premise PBX systems.
But it’s a different story altogether with SaaS-based and PaaS-based PBX systems. Both the models enable ISPs to get started within minutes instead of days or weeks.
5. Automatic Updates and Upgrades
When ISPs use SaaS-based IP PBX software or PaaS-based IP PBX systems, they don’t have to worry about feature upgrades and system updates. The upgrades and updates happen automatically.
They simply have to focus on running their operations and leave the updates and upgrades to their solutions providers, who take care of that from their end.
Conclusion
On-premise PBX systems, which were once the only option for ISPs, are no longer feasible. They have many limitations. Cloud-based SaaS and PaaS PBX models are the right choice for contemporary ISPs in the present time.
They not only come with a broad array of benefits but are widely adopted. So, not using cloud-based SaaS or PaaS IP PBX software can be a disadvantage for today’s ISPs.
For ISPs, the question is no longer “Whether or not to switch to cloud-based SaaS or PaaS PBX model?” It’s “How fast can we get there?”
