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Cloud IVR vs. On-Premise IVR – A Comparative Study


There was a time when you could run a call center with as much technology as you could fit inside one or two tin boxes. Then came a stage when software-based solutions became popular in a contact center. Today, with the tremendous advancements in technology, call center solutions are available on-premise or through cloud computing environment.

But how can you find out which is the best technology option for your call center? Here is a brief comparison between the two to help you in making a decision.

On-premise is suitable when there is a single location

When your contact center has many agents working from a single location, on-premise IVR or telephony-related call center applications will be the perfect fit. Such an IVR solution will be simple to implement.

In such a scenario, the costs associated with the telephony routing on a cloud model may be too exorbitant. The trouble associated with the routing of high volume of calls can be easily surpassed by using a CPE or customer premise equipment approach. But all those applications that do not include telephony, a cloud-based solution can be a viable choice.

IVR on cloud is regarded as a progressive solution

A cloud-based call center solution is a progressive move that will change perceptions and reinvent the way customer service is delivered in call centers. A true cloud-based solution will do away with the requirement for software or hardware and can be implemented fast with easy-to-use and simple administrative interfaces. Your agents just need to have a telephone and an internet connection, thus enabling agility in the workplace or corporate.


Scalability is a major merit in cloud-based solution

A real cloud-based solution will enable call centers to be scalable in the truest sense. It will require you to have as few or as many agents as needed thus providing a quick response to both troughs and peaks in demand and for handling unexpected and emergency situations.

Moreover, any new application releases or developments can be rolled out to all concerned through a cloud. It means that advanced caller ID searches, social media integration and call routing technology can be deployed and developed quickly.

Many companies that are dependent on on-site IVR are hesitant and uncertain about the benefits associated with a cloud-based call center solution and so resist the option of migrating to the cloud.

Here are some of the common misconceptions that are associated with a cloud-based contact center solution.

Losing control

A common misconception about the cloud is that it compels you to relinquish the control you were having with your on-site IVR. Many managers worry that it will be a tough task to introduce changes in their existing system and that includes making such simple changes as removing, updating or adding a menu. However, there are customized sites that will provide you with access to all the IVR elements so that you can bring changes in the menus or business rules and call handling procedures and define reporting structures and customer analytics.

Return on Investment

Analyzing the return on investment after migrating to the cloud is a simple thing to do. The ROI will tell you whether it is apt for you to move over to a cloud-based solution or not.

Financial performance

As far as the question of capital is concerned, the arguments have always been strong. When your call center moves towards a cloud-based solution, there will be no capital costs, no maintenance costs because you need not have any hardware or equipment and no issues related to facility and administration with respect to environment and space controls. You just need to pay a monthly fee for hosting your IVR on a tier one infrastructure.

Integration of Omni-Channel in the cloud

If you are planning to do omnichannel integration, a cloud-based solution simply excels in it.  There is simply no comparison to cloud as far as the ease and convenience of connecting the various other business systems are concerned. Once you have planned to use a cloud-based solution you need not bother about any types of replace and rip, refreshes, system upgrades or new installations. Rather, you have to just switch it on.

Continuous availability

Ideally, making attempts to ensure continuous availability indicates huge operational and capital costs. But, when your contact center has opted for the cloud computing, all these are components of what you will be paying for. They are assured to you by stringent Service Level Agreements and are typically managed by 24 hours staff. It is particularly crucial when your call center grows. Scalability without the fear of disruption is seamlessly achieved in the cloud.


Drop in performance

Many people resist the use of a cloud-based computing system as they think it may affect the call center’s performance. Contrary to this perception, a cloud system has the ability to deliver better performance as compared to an on-premise IVR system.


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