Why 64 7% of Hotels Still Run On Prem Phone Systems and How to Migrate Safely

Metrigy research cited by Sangoma found that 64.7% of hospitality organizations still run on-prem or privately hosted unified communications. The main reason is simple: many hotel teams believe it is more reliable.
That belief did not appear out of nowhere. Hotels depend on phones in ways many businesses do not. A missed wake-up call, a failed emergency call, or a front desk outage during check-in can create real problems fast. For years, local phone hardware felt like the safest option because it lived on-site, under local control, with known vendor support.
But the risk profile has changed. The question is no longer whether hotels should value reliability. They should. The better question is whether aging hardware is still the best way to get it.

Why hotels have stayed with On Prem phone systems they know
Hotels are cautious about communications for good reasons. A phone platform touches nearly every part of the property.
Guest room phones connect to the front desk, housekeeping, room service, emergency services, and wake-up systems. Back-office extensions connect operations teams who need to move fast. Contact centers may handle reservations, group sales, or guest issues across multiple properties.
That makes change feel risky.
Many properties also have integrations that were built over many years. A hotel phone system may connect with:
Property management systems
Voicemail and wake-up call tools
Emergency calling and location records
Call accounting
Analog devices such as lobby phones, elevator phones, pool phones, fax lines, and cordless handsets
When a system works, even if it is old, replacing it can feel like inviting trouble.
There is also a staffing factor. Many hotels do not have large technical teams on-site. If an older PBX has been stable for years, teams may prefer familiar maintenance over a new platform that requires planning, testing, and training.
That thinking is understandable. It is also why the best migration plan does not start with ripping everything out.
The reliability argument is changing
On-prem systems earned their reputation because they offered local control. If the internet went down, internal calling might still work. If a carrier circuit failed, some properties had backup trunks. If a handset stopped working, a local technician could trace the issue in the telecom room.
But local hardware also creates local risk.
Aging servers, unsupported software, failing cards, limited spare parts, and old wiring can leave hotels exposed. A system may feel reliable right up until a key component fails and replacement parts are hard to find. For multi-property groups, that risk spreads across different versions, vendors, contracts, and support models.
Cloud communications can reduce some of that risk, but only when designed correctly. A rushed move to the cloud can create new problems, especially if the property relies on a single internet connection or skips integration testing.
The goal is not to trade one fragile setup for another. The goal is to keep what hotels value most, uptime, clear calls, emergency access, and guest service, while reducing dependence on aging equipment.

A phased migration lowers the risk
The safest path for many hotels is a phased migration. This lets a property move selected users, call flows, or locations to a newer platform while keeping critical legacy functions in place until they are tested and ready.
A phased plan usually starts with discovery. The hotel needs a clear map of what exists today before changing anything. That includes extensions, trunks, analog endpoints, emergency call routes, vendor contracts, integrations, and backup processes.
From there, hotels can choose a controlled first phase.
Good first candidates often include administrative users, reservations teams, or non-guest-room extensions. These groups can test cloud calling, voicemail, mobile apps, and call routing without touching the most sensitive guest room workflows on day one.
The next phase might include shared service teams, overflow call routing, or centralized management for multiple properties. Guest room phones and analog devices can move later, after the hotel confirms the new system works with the property management system and emergency calling requirements.
This staged approach helps avoid the classic cutover problem: everyone discovers the missing details on the same day guests discover the phones do not work.
What to test before moving guest traffic
Testing should be practical, not theoretical. A hotel phone migration succeeds when real hotel workflows work under real conditions.
Start with the front desk. Calls should ring where staff expect them to ring. Transfers should be simple. Night mode should behave correctly. Overflow routing should send calls to the right backup team.
Then test guest scenarios.
Can a guest call the front desk from the room phone? Can staff identify the room? Do wake-up calls work if they are still needed? Can emergency calls route with the right location information? Do common service codes or speed dials still make sense?
Analog devices need special attention. Elevator phones, fire panel lines, lobby phones, and pool phones may require adapters or dedicated circuits. Some should not move until the right technical and compliance checks are complete.
Network readiness matters too. Voice traffic needs stable connectivity, proper quality controls, and backup internet where needed. Cloud calling is only as dependable as the path between the handset and the service.
This is where planning beats optimism. A hotel should not assume the data network is ready for voice just because Wi-Fi works in the lobby.

How to keep reliability while reducing hardware risk
A safe migration plan balances old and new systems until the property proves the new environment is dependable.
That often means keeping the existing PBX active during early phases. It may also mean using gateways to connect analog devices, running pilot groups, and setting rollback steps before each cutover.
For hotel groups, standardization brings extra value. A common calling platform can make support easier across properties. It can also help with shared call handling, central reporting, and consistent guest service. The key is to avoid forcing every property into the same timeline before local needs are understood.
A practical migration plan should answer these questions before any major cutover:
Which devices and call flows are mission critical?
Which legacy integrations must stay active during the transition?
What happens if the primary internet connection fails?
Who supports the system after hours?
How will emergency calling be tested and documented?
Which phase can be reversed if something goes wrong?
Hotels still running On-Prem Phone systems are not behind because they care about reliability. They are often cautious because communications are tied directly to guest safety and service. That caution is useful when it shapes a careful plan.
It becomes a problem only when it keeps aging equipment in place long after the risk has shifted.

The safest move is not always the fastest one
The 64.7% figure shows that many hotels still trust on-prem or privately hosted communications. That trust makes sense. Phones are not just another application in hospitality. They support service, safety, and daily operations.
Still, reliability now means more than keeping hardware in a closet. It means having supportable systems, tested backup paths, clear emergency routing, and a migration plan that does not gamble with guest communication.
A phased approach gives hotels a practical middle path. Keep the reliability standards that made the old system valuable. Reduce the hardware risk that makes it harder to support every year. Move in stages, test the workflows that matter, and let each successful phase build confidence for the next one.




