It’s true that a quality business phone system is an investment in the company, but few businesses have the luxury of overpaying. Business owners who are surprised by the sometimes-substantially lower VoIP phone system costs over traditional systems should consider the stark differences between the technologies.
Cloud providers host and refine their PBX in the cloud and manage it virtually—so there’s no expensive equipment to install and maintain, or technician visits to schedule.
Cost Factors: Traditional providers install their feature-enabling PBX in a server room in each customer’s office, which represents hardware costs, labor expenses and maintenance costs over time. Cloud providers host and refine their PBX in the cloud and manage it virtually—so there’s no expensive equipment to install and maintain, or technician visits to schedule. The result is that hosted PBX solutions can be priced considerably lower.
Pricing Expectations and Questions: Every provider will have a somewhat different pricing structure. Many offer monthly plan pricing based on the number of extensions required, and add-on features can increase this monthly pricing. Beyond plan pricing, shoppers should also inquire about hardware needs and any additional or unexpected fees. Pricing-related questions to ask:
Contracts: Traditional providers commonly require more lengthy contracts, while cloud providers are more likely to offer month-to-month contacts or no contracts at all. The business phone system shopper should always consider value alongside price: While the lowest price may be most attractive, a quality VoIP phone system that’s priced slightly higher and provides better features, service, and return on investment may be worth more to the business in the long run.
Vonage’s Essentials small business service provides plan options that are priced on average 36% less than traditional solutions.* Month-to-month contracts are available with no service contracts required, and a small up-front fee may apply. Compatible IP office phones can be purchased separately if needed.
*Savings claim is based on the average monthly recurring charge for unlimited domestic business calling plans from the top three leading wireline service providers. Comparison excludes promotional pricing, fees, surcharges or taxes and assumes a customer already has broadband service. Check your phone bill to determine the savings that would apply to you.
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