Comparing Costs – Traditional PBX & Hosted VoIP

Artvoice PhotoUnified communications enables integration of many devices, as well as the way in which we communicate.  There are cell phones, smart phones, home phones (some still use!!). We text, we video chat, we IM, we use social media.  At work, we use our office desk phone to communicate internally, or with outside parties.

There is a lot of talk about terms such as Cloud PBX, or IP Telephony, Hosted VoIP – you have surely heard it.  Today, businesses are migrating to VoIP phone systems.  These systems reside in one’s office, or in the “cloud”.

Like any other business decision, the subject of cost becomes an important consideration.  With traditional PBX systems, you typically buy the server, phones, software, installation, training, and then pay for support costs after warranty coverage.  Other costs might include manufacturer software updates, system admin, electrical power for your phone “server”, and the ongoing monthly cost of voice phone lines, local, long distance, and so forth.  These costs can add up – and actually cost more than a Hosted PBX depending on many factors. The chart below demonstrates a comparison of costs between a premise based phone system, and a cloud VoIP system. This is purely a “model”, and actual costs can vary greatly.  We based the estimates shown on a business with 20 users, and 8 voice lines.

On the premise side, there are a number of expenses that do not show on the Hosted PBX side.  These include electrical power (no server = no power cost!) training, maintenance, and manufacturer software updates. You will see the carrier services cost much lower with a cloud based phone system since we eliminate voice lines with hosted IP phone solutions. And, while there is now a monthly subscription expense with our hosted PBX, we do not have the large upfront cost found in the premise system.  All in all, this example shows overall costs lower with a cloud PBX – both in the first year, and over a 36 month period.  Implementing a Unified communications solution in Buffalo can benefit a business in many ways: seamless communications, great features and applications, and the potential for reduced cost.  Discover your own comparison with a simple, complimentary review. Contact a Comtel Account Executive for more information, or for a no obligation analysis of your communications requirements.

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