The Security of your Phone System Cloud PBX vs On-Premise

With the rising trend of modern phone systems for business communications, VoIP systems have gained popularity in the world of communications. Voice over Internet Protocol (VoIP) systems have the capability to host sensitive information across various communication channels such as phone calls, conference calls, voicemail, and chat.

These channels or lines can be hosted on the cloud or in an on-premise system. Most of the PBX systems function using an internet connection, therefore, the risks associated with cyber hacks and other attacks also increase. Effective measures should be proactively deployed to avoid the events of security breaches and abuse of important data hosted across VoIP communication lines.  

With cyber threats becoming increasingly sophisticated, business owners must carefully consider their options when it comes to selecting a phone system. Two popular choices, Cloud PBX and On-Premise phone system, offer different security features and benefits.

In this blog, we will be sharing what kinds of security threats are possible with your business phone system whether it is a cloud PBX system or installed in an on-premise setting. However, let us first understand why is the security of your VoIP system important. 

The Security of a Business VoIP Phone System 

The current geopolitical and economic climate, combined with inadequate cybersecurity measures, have made for an ideal environment for hackers to operate in. As incidents of cyber-attacks are being reported across all industries and company sizes, it is not surprising that many organizations are becoming increasingly worried about the security of their data and technological infrastructure. 

Ensuring the safety and protection of any system used for business operations is crucial. It goes beyond simply guarding sensitive company information against unauthorized access and involves preventing disruptions and negative effects on services and resources, which can impede business operations, decrease employee efficiency, and potentially harm the company’s reputation. 

The concerns regarding the security of business communication systems rise significantly when businesses are re-evaluating their communications infrastructure. If your business is also in a similar process but you are unsure about the security of cloud PBX vs on-premise phone system, then read on! 

The Security of a Cloud PBX Phone System 

Convenient and Secure Cloud PBX, also known as a hosted phone system, offers businesses the advantage of having their phone system hosted and maintained by a third-party provider in the cloud. This means that the hardware and software required to operate the phone system are located off-site, eliminating the need for businesses to invest in expensive infrastructure. But what about cloud PBX security?

Cloud PBX providers often invest heavily in security measures to protect their clients’ data and communication. These measures can include encryption protocols, firewalls, multi-factor authentication, and regular software updates to patch any vulnerabilities. By leveraging the expertise of a reputable Cloud PBX provider, business owners can be assured that their phone system is protected against potential threats.

There are security issues associated with using cloud-based applications, like a hosted PBX, because they rely heavily on internet connectivity. As technology advances, the incentive for hackers to take advantage of these systems also increases. When it comes to the security of Cloud-based VoIP phone systems, IT leaders are most concerned about: 

1. Telecommunications Fraud 

According to a recent report by Communications Fraud Control Association, 73% of the participants experienced an increase in losses to global fraudulent activities. 

Given that telecom frauds continue to increase and are showing no signs of permanent control, it is no surprise that telecom fraudsters are becoming increasingly proficient in taking advantage of both network providers and consumers. However, it does not stop here. While a hit to your business data may cause you financial losses, service providers also lose the trust of their clients and customers in the process amidst the disruption of call traffic across your phone lines. 

2. Lack of Accessibility  

While a cloud PBX phone system is associated with no maintenance and troubleshooting benefits, it is also associated with the gradual realization that user companies do not have direct access to measure the call quality and inbound and/or outbound call traffic. In the absence of an on-premise PBX phone system, some companies create an apprehension that the lack of accessibility to traffic analytics may be conflicting with their corporate ownership and compliance policies.  

3. Adaptability 

When companies are in the process of considering a hosted PBX phone system, the perceived risk is associated with the success of its adaptability among employees. A disruption in accepted and in-practice communication infrastructure may be perceived as an added complexity in the absence of realizing the benefits.  

Benefits of Cloud PBX Phone System

One of the key benefits of Cloud PBX is its scalability. As your business grows, you can easily add or remove phone lines without the need for additional hardware. This flexibility ensures that your phone system can adapt to your organization’s changing needs seamlessly.

Additionally, Cloud PBX offers business owners the convenience of accessing their phone system from anywhere with an internet connection. This means that employees can make and receive calls using their business phone number even when they are not in the office. This level of flexibility can greatly enhance productivity and communication within the organization.


How Cloud PBX Eliminates Office Stagnation?

The Security of an On-Premise PBX Phone System 

Complete Control and Customization On-Premise phone systems, on the other hand, require businesses to purchase and maintain their own hardware and software. This means that all the equipment needed to operate the phone system is located on-site, giving business owners complete control and customization options. But what about security?

With an On-Premise phone system, businesses have full control over the security measures implemented. This can include installing firewalls, setting up encryption protocols, and regularly updating software to address any vulnerabilities. However, it is important to note that the responsibility for ensuring the security of the phone system lies solely with the business owner. Without proper expertise and resources, there is a risk of overlooking or mismanaging security measures.

Since the major difference between a cloud phone system and an on-site PBX system is where the hardware is hosted, the security concerns of the latter also revolve around the reliability of the hardware. 

1. Disaster Recovery and Management 

On-premise phone systems are known as Single Points of Failure (SPoF) as they do not have geo-redundant servers to keep the communications lines running even in case of some malfunction or server downtime. This poses a threat to the call quality of the users. 

Single points of failure (SPoF) in VoIP phone systems refer to any component or system that, if it fails, will result in the entire system going down. These are critical components or systems that are necessary for the normal operation of the phone system, and their failure can result in a loss of phone service or other critical functionality. Some examples of single points of failure in a VoIP phone system include: 

  • Network infrastructure: If the network infrastructure (such as routers, switches, and cables) fails, it can prevent the VoIP phone system from functioning properly. 
  • Power supply: If the power supply for the VoIP phone system fails, it can cause the entire system to go down. 
  • Internet connection: If the internet connection goes down, it will prevent the VoIP phone system from communicating with the outside world. 
  • Server: If the server that the VoIP phone system is running on fails, it can cause the entire system to go down. 
  • Gateway or Firewall: If the gateway or firewall that connects the VoIP phone system to the public telephone network fails, it can prevent the system from making or receiving calls. 

2. In-House System Update 

It is essential to consistently improve and update the security of your on-premise PBX phone system. Your team is responsible for ensuring that it is secure through the end of life. The more work that needs to be done to optimize it, the more financial resources will need to be allocated to maintain it. 

3. Secure Scalability 

Secure scalability refers to the ability of an on-premise PBX phone system to expand and adapt to changing business needs while maintaining a prominent level of security. This means that as the company grows, the phone system can accommodate more users and features, while still keeping the company’s sensitive data and communications secure. However, with telecom frauds getting spot-on, manually scaling the on-premise system can leave windows for attackers to penetrate through.  

To mitigate the security risks associated with manual scaling, it could be a good option to evaluate and implement a disaster recovery or continuity plan in case something happens that affects the phone system. This way the organization can have a backup plan and a clear course of action to minimize the impact on the phone system. 

Benefits of On-Premise Phone System

One of the main benefits of an On-Premise phone system is the level of control it offers. Business owners have the flexibility to customize the system to meet their specific needs and integrate it with other communication tools or software. Additionally, there is no reliance on an external provider, allowing for quicker response times to any technical issues that may arise.

How To Choose The Right Option: Cloud PBX vs On-Premise Phone System?

Choosing the Right Option: When it comes to choosing between Cloud PBX and On-Premise phone systems, there are several factors to consider:

  1. Scalability: If your business is expecting growth or frequently needs to add or remove phone lines, Cloud PBX is the more suitable option. It allows for easy scalability without the need for additional hardware.
  2. Flexibility: Cloud PBX offers the convenience of accessing your phone system from anywhere with an internet connection. This is especially beneficial for businesses with remote or mobile employees. On the other hand, an On-Premise system requires physical presence on-site.
  3. Control and Customization: An On-Premise system provides complete control and customization options. Business owners have the flexibility to configure the system according to their specific needs and integrate it with other communication tools or software.
  4. Security: While both options can be secure, the responsibility for ensuring the security of an On-Premise system lies solely with the business owner. They have full control over implementing security measures such as firewalls and encryption protocols. However, without proper expertise and resources, there is a risk of overlooking or mismanaging security measures.

Looking for a Secure Cloud Communications Provider? 

Look no further than RingOffice business communication experts! Whether you decide to go with an on-premise system or choose a hosted PBX phone system, our solution consultants will help you implement a communication system that ensures maximum security to help your business grow without any apprehensions associated with your business phone system.

Cloud PBX offers scalability and flexibility, while an On-Premise system provides control and customization. It is important for business owners to assess their specific needs and resources before making a decision.

Additionally, consulting with IT professionals can help ensure the chosen option aligns with their security requirements. By carefully considering these factors, business owners can choose the phone system that best fits their organization’s needs and helps protect the security of their workplace.