The cloud is changing how business is done, with software-as-a-service replacing many IT solutions that used to be done on-premise only a few years ago.

Interactive voice response (IVR) is no exception; firms can now easily add cutting-edge IVR to their phone line and without the investment and maintenance that goes with on-premise IVR solutions.

There are a number of reasons why a business might want to choose a hosted IVR solution over an on-premise one. Here are five such reasons:

No maintenance: The typical IVR solution has several components, including telecom components to connect the system to the PSTN network, computer server, power backup, etc. This hardware needs to be maintained, and there needs to be someone on staff to service the equipment when it fails. With a hosted IVR solution, however, there’s no maintenance because the hosting company handles all the hardware. This saves time and money.

Easy expansion: Hosted IVR delivers easy upgrading and downgrading because all the equipment is at the hosting facility. Adding more capacity just means upgrading the IVR package, and even scaling down is as simple as reducing the package. A business always has just what it needs with a hosted IVR solution.

Future proof: Speech recognition is advancing at a rapid clip, and IVR makes advances every year. With an on-premise solution, a business is limited to the technology that was available when the system was purchased. But with hosted IVR, the system is constantly and seamlessly upgraded on a continual basis and at no additional cost to the business, ensuring that the latest in technology is always in use.

Real-time monitoring of expenses: With hosted IVR, it is possible to measure ROI quickly and in real-time. One can measure the exact number of calls, call abandonments, successful calls, etc. And since there is no up-front cost, it is possible to get a true accounting of the total cost of IVR.

Focus on core competency: One of the benefits of a hosted solution is that it frees the business to focus on what it is really good at. For most businesses, telephony is not the core line of business. So instead of having to maintain an IVR system, hosted IVR lets a business instead focus all its attention on what really makes the business unique.