Iubenda logo
Start generating


Table of Contents

On Cloud Customer Service vs. Traditional Customer Service: Which is Better

Are you searching for ways to optimize your IT budget and enhance your customer support? If so, it might be time to consider moving your customer service platform to the cloud with on cloud customer service.

By leveraging the power of cloud computing, you can unlock a range of benefits that can transform your customer service capabilities. From cost-effectiveness and flexibility to enhanced security, cloud-based customer service software outperforms traditional on-premises solutions in every way.

In this article, we will explore the advantages of on cloud customer service and how it can help you improve your customer experience. So if you are a small or medium-sized business looking to enhance your customer support capabilities, keep reading to find out how the cloud can revolutionize your approach to customer service.

On Cloud Customer Service

What is On Cloud Customer Service?

On cloud customer service refers to customer support solutions that are hosted and delivered through the cloud. This solution allows businesses to provide support to their customers from anywhere and at any time, with the use of a customer service platform.

There are several contact center services that are cloud-based, such as automated management of help ticketing, cloud-based contact centers, and customer service software.

This means that instead of having to manage and maintain these resources on your own, you can access them remotely through the internet, from anywhere in the world and easily scale up or down your usage of these resources based on your needs, without having to invest in costly hardware or infrastructure.

Benefits of On Cloud Customer Service:

  • Cost-effective:

Traditional contact center services require significant investments in equipment, infrastructure, and personnel.

On cloud customer service eliminates these costs and provides a more cost-effective option. No physical servers or equipment are required since the service is delivered through the cloud. Businesses only need to pay for the services they use, making it more cost-effective.

  • Flexibility:

On cloud customer service offers businesses the flexibility to scale their customer support as per their requirements. Businesses can easily add or remove agents, change the service hours, and adjust the support channels they offer.

The service can be managed from anywhere and at any time, making it more flexible than traditional customer service solutions.

  • Increased Efficiency:

On cloud customer service can improve the efficiency of customer support. Automated systems can handle simple tasks, such as ticketing, call routing, and data collection, freeing up agents to handle more complex issues.

With automated self-service options, like chatbots, customers can get the support they need without waiting for an agent. This can reduce the time and resources required to handle customer support.

💡 Did you know, AI chatbots can play a significant role in self-service customer service by providing a fast and efficient response to users queries. This can help reduce customer frustration and increase customer satisfaction. Find out more about how AI chatbots can help your cloud contact center here →

  • Improved Customer Experience:

On cloud customer service can offer multiple support channels, such as phone, email, chat, and social media, which can be customized to meet the needs of the business and its customers.

Additionally, by having a history of customer information, you can use this data to provide personalized recommendations and support.

  • Better Insights:

It provides businesses with valuable insights into customer behavior, such as the frequency of contact, the types of issues faced, and satisfaction levels.

Companies can utilize this data to enhance products, services, and overall customer support. Customer service platforms can also provide detailed analytics that can help businesses identify areas where they need to improve and make data-driven decisions.

Cloud vs. On-premises software

When it comes to customer service software, businesses have the option to choose between cloud-based or on-premises solutions.

In short, on-premises software requires businesses to install and manage the software on their own servers, while cloud-based software is hosted on remote servers and accessed over the internet.

💡 It is important to understand the differences between these two options in order to make an informed decision. Here we show you the main differences to help you choose the best option:

Cloud Software
On-premises Software

Does not require any hardware or infrastructure investment and typically has lower upfront costs

Requires businesses to invest in hardware, infrastructure, and IT staff to manage and maintain the software.


With cloud-based software, the provider handles all maintenance and updates, freeing up businesses to focus on other tasks

Businesses are responsible for maintaining and updating the software, which requires time and resources.


Can easily scale up or down to meet the changing needs of the business.

May be limited in terms of scalability, as businesses need to invest in additional hardware and infrastructure to support more users


Providers typically have robust security measures in place to protect customer data

Gives businesses more control over security, but it also means they are responsible for maintaining security protocols and systems.


Can be accessed from anywhere with an internet connection, making it more convenient for remote work or mobile employees.

The software is typically only accessible from the physical location where it is installed.

Moving Your Customer Support to the Cloud: A Step-by-Step Guide

As we already discussed, moving your customer service to the cloud offers several advantages that can improve the efficiency and effectiveness of your customer service, as it is a powerful tool that will certainly help you gain a competitive advantage.

If moving your customer service to the cloud interests you, follow these steps to ensure a smooth transition process:

Step 1 → Define your goals:

Before you make the move to cloud-based customer service, it’s important to clearly define your goals and objectives. What are you hoping to achieve by moving to the cloud? Are you looking to reduce costs, improve efficiency, or enhance customer satisfaction? Understanding your goals will help you select the right cloud-based customer service solution for your business.

Step 2 → Research the market:

Before making the move to cloud-based customer service, it’s important to research the market and explore the different contact center solutions available. Look for providers that offer the features and functionality that align with your business needs and goals, and compare pricing and customer reviews to make an informed decision.

💡 Not sure which customer service tool is best for your company?
Check 👉 5 customer service tools leading the market in 2023

Step 3 → Choose the right provider:

Once you’ve defined your goals and researched the market, it’s time to choose a cloud-based customer service provider that meets your needs. Consider factors such as pricing, features, security, and scalability, and choose a provider that offers the right combination of these elements for your business.

Step 4 → Train your staff:

Moving to a new customer service platform can be a big change for your staff, so it’s important to provide thorough training to ensure they’re comfortable using the new system. This might include training on how to use the new platform, as well as training on new customer service processes and procedures.

Step 5 → Monitor and optimize:

Once you have migrated to the cloud, it is important to closely monitor the performance of your customer service and make adjustments as needed. For example, by tweaking processes or adding new procedures that you were previously unable to complete with an on-premise software tool.

By embracing cloud computing, your business can revolutionize its customer support offerings and gain a competitive edge. The benefits are clear: cloud-based solutions offer unparalleled flexibility, security, and cost savings compared to traditional on-premises software.

So, why not join the cloud computing revolution and take your customer support to the next level?

Compliance tip

If you’re using employees and customer data, you are required to internally maintain clear records of processing activities.

You should keep information including, but not limited to: which categories of user data you collect; how you store and use this data; how long you keep the data for (this is called data retention policy).

Maintaining records could be quite complicated!

🚀 Software like the Internal Privacy Management tool by iubenda can make this much easier, as it simplifies the technical process of creating and maintaining records of processing activities.

About us


The solution to draft, update and maintain your Terms and Conditions. Optimised for eCommerce, marketplace, SaaS, apps & more.