March 10, 2021

VoIP vs. Analog / Cloud vs. On-Premise - What’s Best For My Business?

By Denise D'Arienzo

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What’s best for your business communications? VoIP or analog telephony? Cloud or on-premise deployment? If you’re confused, grab some coffee, and let’s go over a few things.

VoIP vs. Analog

Analog phone systems or the Plain Old Telephone Service (POTS) transmit sound along wires using electrical impulses. These wires connect your premises to a phone service provider -- often via a long and circuitous route.

With analog, you’ll typically need to configure one or more lines to create an internal network, using an on-site Private Branch Exchange (PBX) -- which can be a considerable investment in infrastructure. Being a physical system, an analog landline is vulnerable to siting, installation, and weather conditions. Analog telephony is also prone to hefty charges for long-distance or international calls.

Voice over Internet Protocol or VoIP telephony is a digital system that converts voice signals into data that can be transmitted over a network connection like the internet, a Local Area Network (LAN), or Wide Area Network (WAN).

Fast data transmission and digital technology enable VoIP to deliver higher definition sound quality and to offer a host of advanced features that analog systems simply aren’t capable of. These include auto attendants (electronic receptionists), call recording, advanced call routing options, and call analytics. And internet data routes attract significantly lower charges for all kinds of calls.

Cloud vs. On-Premise

With VoIP having a clear advantage over analog, it should come as no surprise that almost all modern business telephone technology has some kind of VoIP component. These components require computer servers and software to send, receive, and store your data. This infrastructure has to be resident somewhere. The question is, should that be on your business premises, or in the cloud?

If you opt for an on-premise VoIP installation, you’ll need to buy or lease all the hardware and software. You’ll also need technical expertise (in the form of your telecom provider, an external contractor, or your own IT staff) to install, configure, monitor, and maintain the communications infrastructure. 

A cloud or hosted VoIP deployment eliminates these concerns. With cloud, your business communications infrastructure is hosted remotely on third-party servers, owned and managed by a specialist provider, who also takes responsibility for system maintenance, security, business continuity, and upgrades. 

The cloud deployment is usually billed as a monthly subscription per user, and offers scalability and flexibility in the number of users you subscribe, and the features you specify. Cloud or hosted VoIP typically has greater resiliency and redundant data protection mechanisms than an on-premise implementation, making it an especially attractive option for smaller-scale enterprises that can’t afford to maintain their own infrastructure. As a result, cloud communications systems are in use across a range of industries, including healthcare, education, and businesses operating from multiple locations.

net2phone’s cloud-based Unified Communications Solution offers a state-of-the-art desk phone, a robust mobile app, and a cutting-edge video conferencing platform. Live Chat and robust analytics are part of a comprehensive feature set that also provides free calling to over 40 countries.


If you’ve decided to opt for VoIP over analog and a cloud rather than an on-premise solution for your business communications, reach out to us at net2phone.