Managed VoIP and PBX Services: Cloud or On-Premise?

In recent weeks, numerous technology companies have promoted cloud PBX and hosted VoIP services. No doubt, some managed services providers (MSPs) are embracing those services. But a lengthy list of VARs and MSPs continue to promote on-premise unified communications systems. Why’s that? Jason Waldrop, CEO of Connected WorkPlace Solutions — an MSPmentor 100 company and Cisco partner — provided some insights in a recent MSPmentor FastChat Video.

First, a little background: MSPmentor recorded the video during a Unified Communications panel discussion at Cisco Partner Summit earlier this month. During the panel, Waldrop described how he’s promoting Cisco’s unified communications gear into the SMB market. And generally speaking, Connected WorkPlace Solutions has yet to find a hosted PBX service that can effectively replace the on-premise VoIP solutions.

Here’s the video:

Waldrop is an open-minded guy. For him, on-premise vs. cloud isn’t a religious debate. He’s made it clear that Connected WorkPlace Solutions continues to examine a range of cloud services — and cloud storage already represents a healthy portion of Connected WorkPlace’s business. But on the PBX and unified communications front, Waldrop has yet to find the right channel-centric cloud service that balances the right features, functions, price point and partner margins.

Still, it’s very early in the hosted PBX game. Even the most vocal hosted PBX advocates — such as Parallels and Intermedia — concede that the market is just getting started, and a mainstream tipping point may not occur for another two years or so. Waldrop continues to monitor that progress closely… even as he continues to sell on-premise unified communications with closely coupled managed services contracts.

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