When comparing the costs of a premises-based phone system and a cloud phone solution, the long-term costs must be considered – not just the initial hardware and installation. There can be hidden costs due to hardware/software limitations.
There are 10 main factors that contribute to the costs of any phone system. Ask the following questions to help you determine which system has the best value.
Mobile integration with all phone systems are not equal.
With a premises-based system, mobile integration can be cumbersome and costly.
Integrating mobile calls with a cloud phone solution is seamless and affordable.
On-premises systems do not have an infinite storage capacity. When you run out of space on your servers, you are unable to record any more calls.
With a cloud-based system, your storage is delivered via the cloud, freeing you of the worry about on-premises storage capacity.
In today’s ever-changing technological landscape, staying up-to-date is more important than ever. Wanting to add a new feature to your system only to discover that your hardware doesn’t support it is frustrating.
The hardware of a premises-based system typically has a lifespan of 7 years.
Cloud-based systems are an evergreen solution that continually adds new features and improvements.
With premises-based systems, maintenance costs must be factored in. You cannot afford hardware failure, resulting in loss of communications (even temporarily).
With a cloud phone system, direct maintenance costs are not your responsibility because the system hardware is located elsewhere.
Integrating your phone system with your CRM (Customer Relationship Management) system can greatly increase your productivity, streamline communication, and enhance the level of customer service your business provides.
Third-party integration with an on-premises system normally requires a system integrator, which is an added cost and can be a complex task.
Integration with a cloud-based system is generally easy and can be switched on and off with the click of a button.
Sometimes bad things happen – for example, flooding, fire, or electrical failure. When your communications system is impacted by unexpected events like these, you need a back-up system in place.
With a premises-based phone system, adding site redundancy will also add an extra system to your costs.
Because a cloud phone solution is hosted in the cloud, your business communications service is always available on multiple devices. Redundancy is automatic.
A premises-based system has built-in limitations. The more features you add, the more you need to upgrade your system. This always comes at a significant cost.
The performance of your cloud phone solution is always optimized. The cloud has virtually limitless capacity for processing power, no matter how many features you might add.
Your call volumes can fluctuate, depending on the time of day, week, or year.
Premises-based phone systems need the capacity for your peak call times, even if that’s only a couple of weeks per year.
A cloud phone solution allows you to pay for the peaks as and when they happen.
Phone systems need to be maintained and managed. Especially when integrations with other applications and services are involved, this can be quite costly.
If management is outsourced to a third party, charges are typically incurred for a minimum number of service calls per year, whether you need them all or not.
With a cloud-based system, management is simple via your online interface. A large team of technicians or field managers is not necessary. All remote sites can be managed from a single location.
Keeping your communications system secure is essential if you want to protect your company from costly fraud attacks.
Smaller premises-based systems (in particular) are prone to attacks.
A cloud-based solution is protected in a highly secure network.
Explore all the costs involved in your phone system. Ask questions to get a clear picture of what you’re getting for what you’re paying.
Contact a UnitedCloud specialist for a complimentary quote on a cloud-based phone solution for your business.
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