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Cloud-Based Phone System vs On-Premise: What to Choose For Your Saudi Business?

Establishing a contact center for your business is the best investment. Given the abundance of choices in the Saudi market, you may be wondering which software solution is best suited for your industry: cloud-based or on-premise? If cloud software aligns with your needs, ZIWO is the ideal choice!

What Should You Consider When Reviewing On-Premise or Cloud?

Prior to starting the call center setup process, you will need to pose some fundamental questions related to your business. Do you need flexible solutions that adopt easy scaling up through short terms? Are you adopting AI as a part of your work environment? Is Omnichannel communication a mandatory part of your customer relationship management? Do you care about staying up-to-date and being ahead of the market? What about aligning with Saudi Vision 2030’s adoption of cloud computing?

Call Center Budget

For On-Premise Call Center Software

  • Lifetime or pay-as-you-go subscription-based
  • User Licenses
  • Setup and Deployment
  • Support, Updates, and Maintenance
  • Usage Fees
  • Hardware Equipment

For Cloud-Based Call Center Software

  • Pay-as-you-go subscription-based
  • User Licenses
  • Setup and Deployment (usually 50% less than a typical on-premise setup)
  • Usage Fees
  • Free On-going Support (Some providers offer pricing tiers)
  • No Hardware Equipment, thus no maintenance fees needed
  • Automatic Free Updates

Hardware Equipment

For On-Premise Call Center Software

  • In addition to hardware costs, your IT department should include the costs of call center equipment, servers,networking equipment, and monitoring tools to manage integrations effectively.
  • While a fully customized call center might help the business, it will involve more hardware hassles.

For Cloud-Based Call Center Software

  • Agents only require a headset and a fast, reliable internet connection; no bulky hardware is necessary.

Setup, Maintenance, and Updates

For On-Premise Call Center Software

  • Deployment might take weeks.
  • Although you have more control, your IT department is responsible for scheduling maintenance, so if you feelconfident in your IT, the uptime is their responsibility.
  • The provider's updates necessitate costly on-site modifications.

For Cloud-Based Call Center Software

  • Instant easy deployment that could be implemented in one day.
  • No maintenance occurs at your side as all equipment is managed by a third party.
  • All updates are applied periodically and automatically.

Accessibility

For On-Premise Call Center Software

  • Employees can not work remotely and access the software on-site.
  • The use of a VPN for remote work can result in slower internet connections and lag.

For Cloud-Based Call Center Software

  • Cloud-based software allows employees to maintain productivity and security while working remotely.

Cloud and On-Premise Contact Center Software

The Saudi cloud services market is expected to reach USD 10.28 billion by 2030. Due to this rapid growth, even traditional on-premise contact center software providers are now offering cloud solutions to meet the increasing demand. It is predicted that by 2030, on-premise call center software will account for less than 10% of the market.

Therefore, we recommend selecting a suitable cloud contact center software while it is still cost-effective and considerably less expensive than on-premise solutions. ZIWO exclusively offers cloud-based contact center software, whereas 3CX, Genesys, and Ameyo provide both cloud-based and on-premise options. What distinguishes ZIWO as the superior cloud-based solution?

ZIWO

3CX

  • The installation of updates incurs additional yearly costs.
  • Based on the number of tickets, support fees vary.
  • More technical setup for VoIP telephony.
  • Lacks localization and is more suitable for communication outside the MENA region.
  • Limited CRM integrations.
  • No built-in AI features.

Genesys

  • Requires more configuration and customization.
  • Needs extra configurations for omnichannel support.
  • No customization that suits the MENA and GCC regions.
  • Sounds expensive to most SMEs.
  • Requires custom development for CRM integration.
  • No local cloud hosting

Ameyo

  • Needs extra configurations or third-party integrations for omnichannel support.
  • Longer setup durations.
  • Lacks regional customization.
  • Pricing varies based on deployment; add-ons increase costs.
  • Supports CRM integration but often requires custom development.

What Makes ZIWO the Best Phone System in Saudi Arabia?

When we examined the Saudi market closely, we noticed that rapid growth is the dominant quality. Therefore, flexibility and scalability are essential characteristics of a contact center to support growth. ZIWO, a cloud contact center software, allows for remote work and the scalability to handle continuous mass hiring. Your business can quickly add as many users as needed, and obtaining additional licenses for new batches is hassle-free. Remember that:

  • ZIWO is based on a multi-tenant architecture with a centralized management system that supports multiple users and locations.
  • ZIWO includes customizable workflows that allow adaptable call routing, IVR configurations, and automation business needs.
  • ZIWO adopts Pay-as-you-go pricing plans, which enable your business to adjust costs based on usage

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FAQs

What Is Cloud-Based Contact Center Software?

Cloud-based contact center software manages the incoming and outgoing conversations via different communication channels through a mobile/ web-based application. The framework is based on cloud computing infrastructure, mainly a cloud-hosted PBX. The virtual private branch exchange (PBX) develops an internal network over the Internet, which offers more advanced features to your business.

What Is On-Premise Call Center Software?

On-premise call center software is a communication management system based on hardware installed locally on-site. The equipment is operated from inside your premises, where the desk phones are connected to the servers through a traditional PBX system. This type needs periodic maintenance and upgrading to ensure that the software meets the business requirements.

When Is It Better to Choose a Cloud-Based Phone System?

There are many cases where cloud call center software becomes the best recommendation:

  • Starting an internal call center for your business for the first time.
  • There’s an urge to start your call center as soon as possible.
  • The number of call volumes is increasing gradually every month.
  • Expecting to grow your business at a fast rate.
  • Being unsure of the number of employees who will use the software daily.
  • Aiming for advanced features that include omnichannel conversations, AI, integration, and automated workflows.
  • Hiring remote employees who will use the contact center software.
  • Putting a low to medium budget for call center management.
  • Avoiding maintenance hassle and costs that accompany its operations.
  • If your business is still a startup and doesn’t need an IT department yet.

Which Has Higher Total Cost of Ownership (TCO), On-Premise Contact Center Software or Cloud-Based Software?

As you know, the total cost of ownership TCO is the total expenses you pay to own a product or service. Whether you use the cloud or on-premise, there are common expenses found:

  • Deployment and setup fees.
  • License fees.
  • Configuration fees.

However, the on-premise infrastructure consumes 2X-3X the cloud software deployment. Also, hiring an IT specialist is a must. In addition, the maintenance processes become under your control and within your business responsibilities.

On the other hand, cloud-based software is a pay-as-you-go subscription-based software, which depends on the number of users, which makes them the most controlling factor.

In conclusion, on-premise contact center software has a higher total cost of ownership (TCO).

It's worth noting that TCO is a key factor in calculating ROI. As it’s the total amount of money spent, the ROI decreases as the amount increases.

How Much Time Does It Take To Deploy Cloud Contact Center Software vs. On-Premise Software?

Cloud call center software deployment takes a maximum of 72 hours, and it might take just 1 hour in the best-case scenario. On the other hand, deploying on-premise contact center software might take 6 to 12 months.

Which Software Supports Scalability, On-Premise or Cloud Phone Systems?

Cloud contact center solutions are highly recommended in terms of scalability. It’s easier to add or remove agents who use the software. In addition, achieving omnichannel support is more efficient. Moreover, AI capabilities are a wide range of spectrum with on-premise software.
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