Premise-based solutions require a high initial capital investment as well as high recurring support costs to manage, maintain and upgrade the technology.
The management of an on-premise solution can be very expensive. Because of the complexity of today’s communications systems, it often takes an entire IT department to effectively manage the solution.
The refresh cycle on technology solutions has shortened to an average of three years. This represents an obstacle for companies as the ongoing technology upgrade becomes a major capital investment.
With an on-premise solution clients must continue to make large capital investments on new hardware as they grow. They are also left with extra hardware if they downsize.
5) VENDOR MANAGEMENT
With a premise-based solution, the challenge lies in managing multiple vendors for implementation and support, handling separate billing relationships, increased demand for technical experts on multiple platforms and ongoing maintenance, support and upgrade requirements.
6) QUALITY OF SERVICE
An on-premise solution is only as reliable as the design and implementation. To guarantee up-time equipment must be managed by an internal IT department.
With an on-premise solution, hardware and software geographic redundancy is challenging to deliver.
8) DISASTER RECOVERY/BUSINESS CONTINUITY
An on-premise solution typically has no disaster recovery capability because the cost of supplying required hardware and design is generally not affordable to implement or support.
9) SIMPLICITY/END USER CONTROL
An on-premise solution typically requires vendor intervention to make adds, moves, or changes to a system. This can be costly and is typically charged on a time and materials basis and dependent on technician availability.
An on-premise solution typically requires costly upgrades and licensing to add the latest features around mobility if the system you have is current and up to date.