Should I choose a Public Cloud or Private Cloud for my UC&C?

The concept of using a cloud service for telephony isn't anything new:  businesses first started using Centrex in the 1960's.  However, much has changed since the first days of Centrex, and cloud-based services are now available for a range of unified communications and collaboration (UC&C) services using a public cloud, a private cloud, and hybrid models that include a mix of cloud and premises-based elements.

  

Still, the nature of the cloud infrastructure has definitely changed since the 1960s. While Centrex users shared a traditional telco voice (and later ISDN) voice switch, most business communications today have moved to IP communications and many have moved to a data-center model that uses servers and virtual computing.  Eventually, all voice communications will use IP at the core, including public carrier voice services.  For example, AT&T plans to de-commission its legacy SS7 / TDM switched network by 2020, transitioning all voice platforms to an IP-based infrastructure.

  

Businesses of all sizes who haven't already made the transition to Voice over IP (VoIP) will need to do so in the coming years - facing a choice between a premise-based VoIP platform, a public cloud solution, a private cloud solution, or a mix of these alternatives.

  

Cloud-based services are ideal for businesses who want to replace their DID (direct inward dial) and ISDN trunks because the cloud can easily accommodate a gradual migration these legacy TDM services to VoIP or a full-fledged UC&C service.

  

Most of the business benefits in favor of a public cloud VoIP of UC&C solution are the same as they were with Centrex.  Capital investment is reduced because the infrastructure is owned by the service provider.  Maintenance, upgrades, and disaster recovery are all managed by the service provider.  Support for mobile devices can also be offloaded to the service provider which takes responsibility for integration along with the requisite mobile apps needed for full-service connectivity.

  

Organizations that prefer a desktop phone will usually still need to buy their own phones, although some cloud providers bundle the phone with cost of the cloud service.  For those who may not need desktop phones, all business-grade public VoIP services also include the option for a "soft-phone" and most support BYOD (bring your own mobile device) as an alternative to the desk phone, further reducing the need for capital investments.

  

There are some downsides to the public cloud solution. Compared to the features of a premise-based UC&C platform, a public cloud or hosted phone system is limited to what the service provider supports.   This limitation is especially concerning when an organization wants to integrate other systems such as contact center support or other mission-critical applications, although admittedly some service providers do offer basic contact center features as a part of their UC&C service.

 

Another downside is that if the Internet or private IP connection to the cloud goes down, internal communications may be lost; however, this risk can be mitigated if a suitable disaster recovery plan that include mobile devices or remote access is provided.  In fact, remote access is often easier with a public cloud platform than a premises-based platform because the public cloud can use any Internet connection.

Performance management in a public cloud may also be a risk.  Because a public cloud infrastructure shares server and computing resources in a multi-tenant environment, the user must rely on the service provider to assure that sufficient resources are available to meet each subscriber's needs.  A service level agreement and tools that allow the subscriber to monitor performance can mitigate some of this risk.

  

Security for a public cloud is a definite concern.  However, the need for security management is no different for a public cloud service than for a private cloud or premises based UC&C solution. All offer remote access via an Internet connection or gateway service, so session border control, firewalls, and other advanced security measures must be taken regardless of the choice between public cloud, private cloud or -s-based solution.

 

A private cloud offer may offset some of the concerns presented with a public cloud solution.  Security and performance may be more straightforward because hardware resources aren't shared between multiple tenants.  However, since a UC&C platform does connect to the "outside world" to allow external communications, appropriate security measures are still required.

  

A private cloud also offers the ability to customize features and specify organization-specific performance because the infrastructure isn't shared and the feature set belongs to a single tenant.  This may be especially attractive if the organization wants to integrate other systems and applications, or if it wants to share computing resources between applications in a virtual mode.

  

The downside of a private cloud is the cost.  Because resources aren't shared in a private cloud, they may be used with less efficiency than in the public cloud's multi-tenant model.  Private cloud models require a capital investment for dedicated computing resources, even if the payments are spread using an "expense" model. (New US GAAP accounting rules issued in 2016 may further complicate using expense dollars for a private cloud infrastructure, so managers should check with their accounting or contracting department to understand the full implications.)

   

The premises-based solution is still a viable option for VoIP and UC&C, and a range of prices and features are widely available in this commodity market.  Some businesses may find that the cost or a premises-based solution is better, some may discover that a cloud alternative is better, and some may find that a hybrid solution of premises-based and cloud is the best alternative.  As with the public cloud vs private cloud benefits, the choice between a premises solution or a cloud platform may come down to the better cost vs. better control for any given alternative.  Cloud providers and premises-platforms suppliers alike are prepared to help with your business case, so you should prevail on them for assistance as you choose your next communications platform.