5 Reasons Cloud-based IVR is better than Hosted IVR

With rapidly changing and evolving technology, Interactive Virtual Response (IVR) has also undergone major changes. These updates have made IVR less complex and rigid. With the introduction of cloud-based APIs, IVR systems have become more flexible and hassle-free. As the business needs to keep on evolving, so does customer’s needs, which means IVR systems also need to be continuously evolving for customer satisfaction. 

Cloud-based IVR

Nowadays IVR’s are not just used for call and wait for service but are a key element in marketing, sales to service, and support. Read this article to know more about the advantages of modern IVR. Companies are using this technology to interact with customers 24/7. Today IVR systems are classified into three main categories: on-premise, hosted, and cloud.

This article is going to explain to you how the above three categories are different. And why Cloud-based IVR is the best option for recent and upcoming times.

On-premise IVR:

Back in the times when there was no cloud technology, most contact centers were hosted “on-premise”, or on local servers stored within a company’s facility. They are considered to offer greater control and security since the servers are managed and supervised in-house. 

But while on-premise solutions do offer more control, several drawbacks are causing many businesses to avoid this type of solution.

  • Since the data and servers are typically stored in one centralized location, which creates a single point of failure. These systems are much more vulnerable to service disruptions and downtime. 
  • In addition to this, it requires large up-front investments. And a significant amount of time, planning, and manpower to look after the systems. 
  • It has also not been very efficient in handling a large number of customer calls and queries leading to bottlenecks and other constraints.

Hosted IVR:

These IVR systems are more evolved in comparison to On-premise IVR. Unlike on-premise IVR which requires the installation and looking after on-site, these are hosted at your servers premise. This helps the companies in reducing installation and supervising costs. 

  • But similar to on-premise, hosted solutions also have their servers in one centralized location, leading to the same vulnerabilities, service disruptions and downtime.
  • These have also not been effective in meeting the volume and ever-changing customer demands.

Cloud-Based IVR:

Cloud-based IVR is specially designed to meet the exponentially growing demand and expectations of customers. They are popular for their superior flexibilityreliability, and cost-savings. They have also eliminated the need for large up-front infrastructure investments. It further helps in reducing the dependency of companies on the functionality of IVR systems. 

Cloud-based IVR
  • Cloud-Based IVR has access to worldwide IT resources.
  • They are less susceptible to faults or vulnerabilities.
  • They work by distributing the workload across multiple data centers. This means if one center has a malfunction, the other can substitute it leading to no halt in the progress of work.

5 Benefits of Cloud-based IVR

Benefits of Cloud-based IVR

1. Low operational cost: 

One area where cloud IVR solutions prove very effective is in reducing business expenses. When a company receives hundreds of calls, they ought to waste time and misuse resources to attend this huge influx. Implementing a cloud-based IVR solution is the best way to funnel calls as they come in, segmenting callers and routing them directly to the agent who can best serve their needs. Or can even opt for the self-help option.

2. More reliable and error-free:

It is known to everyone how critical it is to keep systems up and running as the hosted IVR systems can easily go down. But in a cloud-based IVR solution, the chances of downtime are negligible. This is due to redundant servers and backup equipment. This helps the IVR service up and running even if a server were to go down.

From a business standpoint, this allows you to offer service 24 hours a day with a near-perfect level of uptime. Such stability and reliability are difficult to implement in classic on-site IVR configurations.

3. Less Investment cost:

In setting up a Cloud-based IVR, there are capital costs or maintenance costs involved. Since no hardware or equipment is required, there are no issues related to facility and administration concerning environment and space controls. 

You just need to pay a monthly or yearly fee for hosting your IVR on a good infrastructure like VirtuIVR. 

4. Simple Scalability:

 Another advantage of using a cloud-based IVR is its scalability. As the system does not have a phone hardware, adding and/or removing features, is instantaneous and extremely easy. The process is as simple as logging into a web-based dashboard and making changes.

Benefits of Cloud-based IVR
Cloud-based IVR can be used remotely

For example, to update a greeting message during a festival season, you just need to login to your software and record or store a pre-recorded greeting message which also includes your festival wishes. There is also a wide range of video and voice features that you can add or remove. You can also make changes to your menu options as in when required according to your customer needs, without any dependency on anyone.

5. More services means more efficiency:

 Cloud IVR also gives you a plethora of analytical insight. Firstly it allows you to track customer call volume, origin, and time-frame. Many businesses experience higher call volume during certain times of the day or week and by tracking this information, you reduce the chances of bottlenecks. This helps cut down on lost business and bad customer response.

Secondly, cloud IVR systems also allow you to track employees. This means you have access to the number of calls taken, overall call duration, percentage of overall work done versus their coworkers. This allows you to keep track of employee productivity and overall performance. 


You cannot ignore the above-mentioned advantages if you want a more reliable and efficient IVR system. Cloud-based IVR is better than hosted IVR in almost every aspect. They are more cost-efficient, require less upfront investment, and are more accustomed to today evolving technology. Not only this they don’t require a dedicated team to supervise it and are also less prone to system failures and downtime. 

If you are looking to get an IVR system for your business, you know now that Cloud-based IVR is the one you should be looking for to meet your present as well as future business demands. Don’t invest in an obsolete system. 


If you want to see a live demo of how a cloud-based IVR works please visit VirtuIVR or contact us at sales@virtuivr.com. You can even leave a message for us in the comment section below and our team will get in touch with you.

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