Cloud or CPE a.k.a. To Cloud or Not to Cloud


Herbert77060

Texas Southern University


Cloud or CPE?
Should I Cloud or should I own is a dilemma many small and large business owners are faced with today.

(Disclaimer: I am partial to CPE)

The craze today is the Cloud. The cloud for voice…the cloud for data…the cloud for storage…the cloud for this…the cloud for that.

In truth, the Cloud is a server (or servers) in a data center somewhere. Someone administrates and maintains the data centers whether for voice, data or storage. Some cloud servers have shared access and some have dedicated access (dedicated is of course more expensive than shared but also more secure) and some have a combination called ‘hybrid’.

CPE stands for Customer Premise Equipment (when it comes to voice it means your telephone system at your site). Some cloud providers will install “cloud” equipment at a customer’s site so why that is still labeled “the cloud” is beyond me.

When it comes to voice communications, everything is moving to VoIP (Voice over Internet Protocol) and SIP (Session Initiated Protocol). SIP communications is very crisp and clear (for some people it is too clear but that is a topic for another day). CPE VoIP and Cloud voice are actually very similar in technology.

With Cloud voice software, versions are always current and up to date. This is not the advantage it once was because many CPE voice solutions now offer free software and firmware upgrades to keep your system current and improve security.

The only major difference is CPE is customer owned and onsite and Cloud is in a data center somewhere (could be next door or could be anywhere in the world)…oh yeah, there is another big difference. Since Cloud voice is a service, you pay for each and every “instance” a.k.a. feature you want for each “seat” a.k.a phone/user. The more features/instances you want access to for each “seat”/phone the more the service costs per phone/user. For the most part the individual instance/feature costs are relatively minimal BUT you pay for them as long as you have the service and/or use the instance/feature. Initial cash layout is usually low (compared to CPE) and they may even offer some perks like free phones (usually low end models). Voice mail…line appearances…call twining…speed dialing and other features are paid for each month. Moves, adds and changes (MAC) are usually fairly quick except for waiting for the phone to be delivered.

CPE VoIP is not as cost friendly initially (because you purchase the equipment) but the majority of the features (the most common features) are built into the system and every phone has access to every feature. So voice mail, speed dial, paging, twining (in some systems) are included. Once your system is paid for you only pay for repairs (if necessary and an extended warranty can take care of hardware costs). Moves, adds and changes (MAC) are not as problematic as they use to be because CPE equipment can be accessed remotely and software changes (and some maintenance performed) made without a site visit. One big plus for CPE, in my opinion, is you know your technician. Being on a first name basis with the person who maintains your equipment cannot be under sold. With Cloud voice, whoever gets your service ticket performs the MAC and all technicians ARE NOT created equal. If your CPE tech screws up you get to yell at him/her in person and you are less likely to get the run-around. Most CPE equipment today takes up no more space than a rack mounted switch and many are not as large as an encyclopedia.

As with Cloud voice, CPE phone moves are as easy as unplugging the phone and moving it to the next LAN jack (most computers and VoIP phones share the same cable).

So, what are the differences that set apart either voice solution? The differences are few but for some customers that difference determines whether they go with one or the other.

If cash flow is an issue a Cloud voice solution may be the answer for you but since CPE financing is always an option, the cost of equipment may not be as prohibitive as it appears plus, at the end of the lease (normally from 3-5 years with a $1 buyout) you no longer have a monthly payment. So say for instance your CPE costs $4,000.00 (not including sales tax) and you keep the equipment for 10 years (remember software upgrades and in some cases firmware upgrades are free so your investment is not obsolete) you will have paid for the system in probably 5 years as oppose to the $21,000.00 you would have paid in that same 10 year period (based on $175.00/mo and no service or equipment changes) and that does not include taxes and other fees associated with buying a service.

COMPARISON

FEATURE
CPE
CLOUD
Ownership of features (No per feature charge)​
x​
Phones can be upgraded as wanted/needed​
x​
x​
Phones can be moved by the customer​
x​
x​
Software & firmware upgrades are FREE​
x​
x​
Redundancy * (CPE offers redundancy as an option)​
x​
Technical Support​
x​
x​
Remote software moves/adds/changes​
x​
x​
Phones for remote offices​
x​
x​
System expansion​
x​
x​
Mobility solutions​
x​
x​
Phone technology/protocol​
Analog/Digital/SIP/Proprietary IP​
SIP Only​
Supported lines​
POTS/SIP/PRI​
SIP Only​
Voicemail (unified messaging)​
x​
x​
System backup​
x​
x​
 
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