What is the difference between an on-premise phone system and one in the cloud?

A premise-based telephone system involves purchasing and installing the hardware often referred to as the PBX (Private Branch Exchange). This hardware is located in customers premises comms room and connects to the telephone lines provided by one of the main traditional carriers, such as BT or Virgin. It then branches to local extensions acting as the local exchange.

A cloud-based telephone system is located away from the client’s premises and hosted by a cloud provider such as Gamma or RingCentral. These systems are referred to as a VoIP telephone system, and they allow users to make calls over the Internet from a remote location, to the cloud server, to access all the functionality of the cloud PBX.

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