There are so many ways that a VOIP Hosted PBX can save you money I can’t begin to cover them all in a short space. However, here a few of the major cost saving aspects of a VoIP Hosted PBX system:
Cash Flow - Controlling cash flow is a major factor that determines the ultimate success or failure of any business, regardless if you are a start-up or an established business. Tight control over capital expenditures and operating expense is essential. On average, a VOIP Hosted PBX costs 20-40% less than a premise-based PBX. Also, CAPEX is minimized because you don’t have to “Buy the “Box”.
Additionally, because of the way premised based PBX systems are designed, you have no choice but to buy more equipment than you actually need to support your current requirements.
Sounds crazy, but it’s true. Why spend precious dollars now on equipment you won’t need until six or 12 months later or longer? A VOIP Hosted PBX allows you to pay as you grow. In other words, you only buy what you need to support current requirements.
Adding new employees to the system is fast, easy, and cheap. More importantly, you don’t have to pay for something until you actually need it.
If you are ever affected by a downturn in business, a VOIP Hosted PBX gives you the flexibility to reduce your expenses accordingly by reducing your telecommunications requirements with no penalty since you only pay for what you need, when you need it. Generally, you cannot do that with a traditional premise-based PBX without incurring some form of financial penalty.
Moves, Adds, and Changes - Unlike a traditional PBX, in a VOIP Hosted PBX environment, Moves, Adds and Changes do not require an on-site technician to make changes to your phone system. A VoIP Hosted PBX can be remotely configured by the provider, thus providing you with the flexibility to add, change, delete or move users within hours instead of days.
Eliminating costly monthly maintenance contracts will reduce your expenses because there is no need for a technician to visit your location every time you want to make a change. This is done remotely by the VOIP Hosted PBX provider, which also gives you with greater flexibility to respond quickly to changing business or market conditions.
Significantly Reduce Depreciation Losses - Traditional PBX systems depreciate almost 70% the day you install them. With VoIP Hosted phone service, you won’t have to worry about depreciation since you’re not purchasing equipment.
Although there are many other reasons that a Hosted PBX can save you money, such as reduced maintenance, elimination of the need to track and implement software patches, no requirement to maintain PBX equipment inventories, no vendor finger-pointing, and faster trouble resolution, the overall savings can be summed up by considering the Total Cost of Ownership of a traditional PBX compared to that of a VOIP Hosted PBX.
In the December 2005 issue of Business Communications Review, Ken Dolsky and Warren Williams of InfoTech published an in-depth analysis comparing the TCO/ROI of a Hosted PBX to that of a premise-based IP PBX for a single location with 50 users. They concluded for most instances, the Hosted PBX environment was the clear financial and performance winner. Even though their analysis shows a significant opportunity to reduce costs with a VOIP Hosted PBX, it is important to point out that the analysis did not not take into account large savings associated with increasing employee productivity and revenue using the Hosted PBX’s advanced features.
Here’s another piece of advice.
When you replace your traditional PBX with a VOIP Hosted PBX system, then plan on buying a bigger piggybank, too.
Bill Casey is the VP of Marketing for Reignmaker Communications, headquartered in Atlanta, Georgia. They offer Hosted PBX service.
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