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Phone systems for many businesses are the primary method of communicating with their customers, partners, and amongst employees. Having a proper and reliable phone system could mean the difference between a business succeeding or failing.
Many businesses have their own explicit communication needs and the costs of installing an integrated on-premises phone system can vary. For many businesses, the cost of a phone system, its add-ons, and the number of lines all factor directly into the overhead of the company. This leads to a deeply vested interest in minimizing the costs to increase profitability.
With an on-premises system, the hardware costs range from $3500 - $4500 for the basic phone system and enough desk phones for 5-10 lines, plus average monthly service fees of $66 per line. For a larger company, with 100+ lines this cost will grow exponentially as the base system will have to be expanded to meet your company’s infrastructure needs and each of the lines will add an additional cost that can grow out of control very quickly.
There are other costs involved in using on-premises phone systems and services, and these costs that may not show up on your monthly bill but will add up just the same. It’s important to plan for them, because they represent significant periodic expenses that may make it infeasible to host an on-premises system.
None of these additional costs should be dismissed as insignificant. Their impact may vary based upon your company’s size, location, and needs but they will nevertheless have a substantial impact on your bottom line.
With a cloud-based ("hosted") PBX system, businesses start seeing the savings immediately. Cloud voice systems eliminate the costs for installation of the on-premises PBX system, and in some cases the hardware costs. Additionally, when you reduce your business' phone services bills, the savings add up over time.
Beyond the savings, you will get the following benefits with a Cloud PBX system:
There are other solutions to help mitigate the costs of an on-premises PBX solution; however, hosting it off-site provides a great number of additional benefits that cannot be achieved by hosting your system on-site.