Avaya Business Phone System Options Explained: On-Premise, Cloud, or Hybrid?

Choosing the right business phone system isn’t just about making calls. It’s about reliability, scalability, cost-efficiency, and keeping your teams connected across locations. If you’re considering an Avaya business phone system, you’re already ahead of the curve. But now comes the big question: On-Premise, Cloud, or Hybrid?

Each setup has its strengths and its challenges. In this guide, we’ll break down the most popular Avaya system types, IP Office, Aura, and Cloud Office, and explore which deployment model fits best depending on your industry, size, and goals. Whether you're upgrading legacy equipment or launching a new communications infrastructure, the insights here will help you choose wisely and future-proof your decision.

Understanding the Avaya System Types

Before we dive into the deployment options, let’s set the stage with the three core Avaya systems you’re likely to encounter:

1. Avaya IP Office

This system is designed for small to midsize businesses (5–3,000 users). It’s known for its flexibility and can be deployed on-premise, in the cloud, or as a hybrid solution. IP Office supports unified communications, voice, video, messaging, and conferencing, making it a versatile platform for growing teams.

2. Avaya Aura

Aura is enterprise-grade, built for organizations with 1,000+ users who require high availability, complex call routing, and global scalability. It’s typically deployed on-premise or in a private cloud and offers advanced collaboration, security, and contact center capabilities.

3. Avaya Cloud Office (ACO)

This is Avaya’s fully cloud-native solution, built in partnership with RingCentral. It’s best for businesses looking for an out-of-the-box, hosted solution with low upfront costs and minimal IT involvement. ACO includes voice, video, team messaging, and integrations with common tools like Microsoft 365 and Google Workspace.

Still using a legacy system like Nortel? You're not alone. Many businesses continue to rely on older systems that still work but need expert care. Our Nortel Support services help extend the life of your existing investment while planning for future upgrades.

On-Premise vs Cloud vs Hybrid: Pros and Cons

Now that we’ve covered the system types, let’s compare the deployment models. Choosing between an on-premises Avaya Business Phone System and a Cloud Avaya Business Phone System depends on your operational needs, compliance requirements, budget, and long-term IT strategy.

On-Premise Avaya Business Phone System

With this setup, all the hardware, servers, PBX, and networking reside at your location or data center. You maintain full control over the system, including upgrades, configurations, and security.

Pros:

• Full ownership and control

• No recurring subscription fees

• Easier to meet strict compliance/security standards

• Customizable to unique workflows

Cons:

• Higher upfront costs (hardware, licensing, installation)

• Requires in-house or outsourced IT support

• Less flexibility to scale on demand

• Hardware becomes outdated over time

Best for: legal and manufacturing with strict compliance requirements and in-house IT teams.

Cloud Avaya Business Phone System

This model moves your communications infrastructure off-site and into a hosted environment. The service provider (like Avaya) manages everything, updates, backups, and security, so you can focus on your business.

Pros:

• Lower upfront costs, predictable monthly fees

• Easy to scale as your team grows

• Always up-to-date with the latest features

• Accessible from anywhere (ideal for remote workforces)

Cons:

• Requires stable, high-quality internet

• Less control over system configurations

• May not meet complex compliance or customization needs

Best for: Startups, SMBs, remote-first teams, and organizations with distributed workforces or limited IT resources.

Hybrid Avaya Business Phone System

Hybrid systems combine the best of both worlds. You keep some infrastructure on-premises (e.g., for core sites or compliance needs), while also leveraging the cloud for mobility, scalability, or redundancy.

Pros:

• Flexible architecture that adapts to your business

• Phased migration from on-premise to cloud

• Enhanced disaster recovery and business continuity

• Supports both desk phones and mobile devices

Cons:

• Requires careful planning and integration

• More complex to manage than pure cloud or on-premise

• May involve multiple vendors and systems

Best for: Mid-to-large businesses in transition, organizations with multiple office types, or any company balancing legacy systems with cloud agility.

Which Industries Are Best Suited to Each Type?

Legal firms typically prefer on-premise or hybrid Avaya systems for secure call handling, compliance, and integration with legal software. These setups offer better control over client communications and sensitive data.

Manufacturing companies benefit from hybrid or on-premise systems that support both digital and analog hardware across plants and remote locations. Reliability, scalability, and minimal downtime are key.

At a glance:

• Legal: On-premise/hybrid for data control and compliance

• Manufacturing: Hybrid/on-premise for reliability across facilities and scalable growth

Morgan Birge helps tailor solutions to match your industry’s exact needs.

Why It’s Time to Evaluate Your Avaya Strategy

The telecom environment is changing fast. Legacy systems are reaching end-of-life, remote work is the new norm, and customer expectations for seamless communication are at an all-time high. Whether you're still running a traditional PBX or have an aging IP Office system, it’s worth asking:

• Are we paying too much for maintenance?

• Can our current system support hybrid or remote work?

• Are we ready for a cloud migration, or just part of it?

• How will we scale communications as the business grows?

This is where strategic planning pays off. Moving to the cloud or adopting a hybrid model isn’t just about saving money, it’s about futureproofing your business communications.

Choose What Fits, Not Just What’s New

There’s no one-size-fits-all answer when it comes to Avaya systems. The right choice depends on your business goals, technical capacity, and the experience you want to create for both employees and customers. The good news is, Avaya offers the flexibility to design a system that fits you, not the other way around.

Whether you're leaning toward an on-premises Avaya Business Phone System for total control, a Cloud Avaya Business Phone System for simplicity and agility, or something in between, making the right move starts with understanding your options.

Need help choosing the right system?

Morgan Birge offers expert Avaya consultations. We’ll assess your current infrastructure, walk you through the pros and cons of each model, and help you build a plan that aligns with your business strategy, now and into the future.

Contact us today!

Frequently Asked Questions

What’s the difference between an on‑premise Avaya system and Avaya Cloud Office?

An on‑premise Avaya system installs your PBX hardware and software onsite, giving you full control, ideal for strict security or customization needs. Avaya Cloud Office, by contrast, is fully hosted in the cloud, lowering upfront costs and enabling easy remote access while Avaya handles maintenance and updates.

Can I integrate Avaya with mobile and desktop apps?

Yes. Avaya Cloud Office works seamlessly across desk phones, desktop apps, and iOS/Android, offering voice, video, messaging, and unified communications from any device.

Is a hybrid Avaya solution a good option?

Hybrid setups give you local control where needed (legal firms, manufacturing plants) while leveraging cloud features like scalability, remote work tools, and disaster recovery.

Which industries benefit most from each option?

Legal firms favor on‑premise or hybrid systems for compliance, data control, and secure call handling. Manufacturing loves hybrid or on‑premise options that support factory equipment and multi‑site setups with reliable uptime.

Do on‑premise systems still make sense today?

Definitely. If you need high security, dependable performance during outages, or already have PBX investments, on‑premise or hybrid Avaya systems remain a smart long-term choice .