One Step Ahead of IT. We do IT right.

DataRoad - IT Services and Consulting

Cloud or on-premises phone system: which costs less over 5 years?

Cloud, on-premises or hybrid IP PBX: five-year cost, remote work, internet failures and QoS, calculated with your figures. Request a no-commitment proposal.

More than 10 workstations · support contract · remote, on-site and phone support

At a glance

For decision-makers short on time.

  • 01Under 3 years or dispersed teams: the cloud almost always wins.
  • 02Over 3 to 4 years, everyone in one building: on-premises tends to be cheaper.
  • 03Hybrid: on-premises PBX with remote extensions and queues in the cloud, ideal if you already invested.
  • 04Without QoS and managed switches, neither option sounds good.

A poorly chosen phone system is paid for twice: on the monthly bill and in the calls that drop. DataRoad, headquartered in Alfragide with support across the whole country, compares cloud and on-premises PBX using each company's real figures and takes responsibility for both the voice service and the network it runs on.

The decision comes down to one question: for how many years will you use the system? With a short horizon, or dispersed teams, the cloud almost always wins. With a long horizon and everyone in the same building, an on-premises PBX usually ends up cheaper, and the tipping point typically comes between year 3 and year 4. There is also a third option that few people propose.

What decides between cloud and on-premises?

  • The tipping year Around year 3 or 4, the on-premises model starts to pay off.
  • The middle ground Keep the PBX in the building and move only remote extensions and queues to the cloud.
  • The network Voice over IP needs traffic prioritisation; without it, neither model works well.

What does each model cost and how does it behave, criterion by criterion?

CriterionIn the cloudIn the building
Start-upLow investment: handsets and installation onlyHigh investment: hardware and licences
Every monthYou pay per extensionYou pay maintenance and call traffic
When it pays offFrom the first monthAround year 3 or 4
New versionsArrive automatically, at no extra costScheduled and paid for by you
More or fewer extensionsAdjusts month by monthTied to the licences you bought
Several officesOne PBX serves them allNeeds links between sites
Working from homeThe extension works wherever there is internetRequires a VPN or secure publishing
Internet downThe PBX stays up and forwards to mobilesInternal calls continue; external calls stop
Power cut in the buildingNo impact on the PBXIt stops, unless there is an adequate UPS
Recordings and dataHeld by the provider, under a data processing agreementStay with you
Integration with local systemsFeasible, depending on the providerFull, even with legacy equipment

When is the cloud the right decision?

  • Up to around 50 extensions With no special integrations.
  • Dispersed teams More than one office or people working from home.
  • Zero hardware Predictable cost per user and a free rack.
  • A move on the horizon If you are changing premises soon, the PBX moves with you, with no works.
  • Seasonal teams Extensions that open and close during the year.

When is an on-premises PBX cheaper?

  • Many extensions, many years Over five years, the savings add up.
  • Recordings kept in-house Isolation or internal retention requirements.
  • Local systems Production lines, reception, intercoms, legacy equipment.
  • Hotels and healthcare Direct integration with management software installed on site.
  • Unreliable internet With no acceptable alternative connection.

Chosen by respected and international companies

Garcia, GarciaGuestUNMQ DigitalMinistério PúblicoVentaskETISMEGReltio by SAPRestreamVelvEscola Nacional de Saúde PúblicaCircuito EstorilSyoneCreative MindsInstituto Superior TécnicoRTPUniversidade Católica PortoUniversidade Católica PortuguesaFaculdade de Medicina de LisboaUniversidade de LisboaClínica MulherPresidência da RepúblicaESELUpMUN[it]STENEmbajada de España en PortugalNBCC ConsultingInstituto dos Registos e do NotariadoVila GaléBe Poet Baixa HotelBe Hotel LisboaRossio Plaza HotelServiced Apartments Boavista PalaceMitrelliJunta de Freguesia de Massamá e Monte AbraãoInsidepurpleUniveteColégio MinervaPTR Pharma ConsultingInfocapitalHD Duecitânia Design HotelYunit ConsultingMyWindowArqsizeAxiaVestasContinentalGRENKEBaker TillyVINCI AirportsANA Aeroportos de PortugalE.LeclercUriachbeqomNewhotel SoftwareeasyHotelOuro Rossio HotelNicola Rossio HotelClínica LambertBanco do BrasilBoostUphillHole19Ambassade de France au PortugalU.S. Embassy PortugalEmbaixada da Arábia SauditaEmbassy of CyprusPanikeAugusta LabsIGASSISPorta da Frente Christie’sonRisingFresh DesignGesto EnergyBernerQuatenusSegurança SocialCâmara Municipal do MontijoCloud or on-premises phone system: which costs less over 5 years?CiphraCentury 21Hotel Solar PalmeirasSINCTAAPCTAVarandas de Lisboa★★★★★ 5,0 · 52 Google reviews

Why does almost nobody propose the hybrid model?

Because it suits neither type of vendor. In the hybrid model, the PBX stays in the building and only remote extensions and call queues move to the cloud. For companies that bought a PBX recently, it is often the most rational option financially.

What risk must you check before choosing?

The network. Choosing the model before auditing it is the most expensive mistake in this decision. VoIP degrades on networks without QoS, with unmanaged switches or with a shared internet connection without rules. In the cloud, the symptoms are dropouts and silences; in the building, the same.

That is why we run the same check as in any network infrastructure project. Discover the IP PBX managed by DataRoad: installation, number porting and support, in both models.

Questions from decision-makers

Is a cloud PBX more vulnerable?

Not in itself. Properly configured, a cloud PBX and an on-premises PBX encrypt calls in the same way. What changes is who is responsible for the infrastructure and what the data processing agreement says. A forgotten on-premises PBX left open to the internet is far more dangerous than a managed, up-to-date cloud service.

If I choose now, am I locked into that model?

No. IP handsets usually work in both models and your phone numbers move with you from one to the other. The real loss lies in on-premises licences paid for ten years ahead, which is why we advise against over-investing at the start while the usage horizon is still unclear.

Does our old analogue or digital PBX go in the bin?

Not straight away. The old PBX connects to a gateway and extensions migrate in phases, rather than all in a single weekend. That way the company keeps answering calls during the transition, and the most-used desks move to the new system first.

How many simultaneous lines should I contract?

Between 25% and 33% of the total number of extensions, as a starting point. Sales and customer service teams need more channels; administrative departments, fewer. The right number is confirmed against the call log of your current system, and that is the calculation we make before proposing.

What happens to calls if the internet fails?

It depends on the model. In the cloud, the PBX stays active and forwards calls to mobiles. In the building, internal calls continue but external calls stop until the connection returns. In both cases, a second internet connection with failover reduces the risk, which is why we manage network and voice together.

Does DataRoad only install the phone system?

No. The PBX is provided within an IT Unlimited contract, for companies with more than 10 workstations, and DataRoad is responsible for the voice service and the network that supports it. We do not carry out one-off jobs or sell standalone equipment: that way there is a single party accountable when a call fails.

Want to see the comparison with your own figures?

We calculate both scenarios over five years, with your extensions and your traffic, with no commitment. Read also the real price of a business phone system. We provide this service within an IT Unlimited contract: no one-off jobs and no standalone equipment sales.

More than 10 workstations · support contract · remote, on-site and phone support. +351 211 459 950 * · sales@dataroad.pt

*Call to a Portuguese landline.

Numbers you can verify

11years in business
232clients
< 10 minaverage response time
15+IT vendor certifications
10+Countries with clients supported
5.0 ★52 Google reviews
Transparency

What many providers hide, we publish.

  • Prices upfrontEssential from €395/month + VAT, Premium from €750 and Premium 365 from €1,200.
  • No lock-inAnnual contract, no lock-in and no joining fees.
  • Everything in writingWhat is included, the scope and the price, before you sign.
  • Support without counted hoursRemote and phone in every plan; on-site support from Premium.

Partners and certifications

Apple Technical PartnerUbiquitiUniFi Partner ProgramMicrosoftMicrosoft Partner NetworkMicrosoft AzureFortinetCiscoCisco MerakiSophosESETVMwareDell Technologies PartnerHewlett Packard EnterpriseHPE Aruba NetworkingLenovoSynologypfSenseNetgateAcronisPalo Alto NetworksMikroTikRuckusNetgearBitdefenderMcAfeeSymantecRed HatAWSGoogle CloudGoogle PartnerSeagateAPCEatonSnomDahua

DataRoad · Cloud and Microsoft 365

One StepAhead of IT.

The right licences, MFA on every account and backups that actually restore. The cloud stops being an invoice and becomes a tool.

  • MFAon every managed account
  • 0DataRoad security incidents in 11 years
  • M365backed up off-site

We do IT right.

Contact

Have your backups ever been put to the test?

Automated, monitored backups stored off site.

Phone+351 211 459 950 **Call to a Portuguese landline
HeadquartersAvenida dos Moinhos 12 B, 2610-119 Alfragide, Portugal

More than 10 workstations · support contract · remote, on-site and phone support

DataRoad works only for companies under an IT Unlimited contract. We do not take subcontracted work or one-off call-outs.

Your details are used only to reply to your request.