Cloud Phone Systems Save Money Compared to On-Premises Systems

cloud pbx phone system

It’s NOT Too Good to be True: Cloud Phone Systems Save Money

Though we’d rather not admit it, we’ve all suffered the misery of purchasing something that was so inexpensive that it seemed too good to be true — but we went ahead and bought it anyway, only to discover that the little voice in our head was 100% right.

For example, how many of us have bought an ultra-cheap toaster, only to have it break down in a matter of months, weeks — or sometimes even days? And how many times have we booked a bargain basement motel room, only to find ourselves lying awake in bed at night wondering if they’re filming an episode of COPS on the property?

However, sometimes when we’re faced with a surprisingly low price for something, it’s actually NOT too good to be true. And one of the best examples of this is a cloud telephone system. Here are the 10 key reasons why:

No On-Site System Cost

With a cloud phone system, (also known as Voice over Internet Protocol or VoIP), there is no expensive on-site Private Branch Exchange (PBX) system to purchase, along with one or more servers and interface cards. All that organizations need to purchase is IP phones, a managed router, and (if necessary) a network switch.

With a cloud-based phone system, there is no need to purchase and maintain a separate IT infrastructure for telecommunications. This is because all voice and unified communication functions (e.g. instant messaging, video conferencing, etc.) run on an organization’s existing data network, which is already being used to transfer files, send/receive emails, connect to the web, and so on.

Long-Distance Cost Savings

With a VoIP phone system, there are no domestic long-distance costs — which can save organizations anywhere from $20/month to over $100/month. Additionally, you get unlimited calling in the US and Canada. As a result, you can save a significant amount of money on long-distance charges when compared to conventional on-premises phone systems. And, by taking advantage of the cloud-based system’s capabilities, you can also save money by reducing or even eliminating expensive international calling plans. Plus, the cloud-based system is not tied to any particular provider, allowing you to shop around for the best deals on long-distance and international calls.

No Maintenance Headaches

With a cloud-based phone system, all technical support, maintenance, and ongoing upgrades (e.g. security patches, innovations, etc.) are handled by the VoIP provider. There is no need for organizations to hire in-house cloud specialists, or burden their (already exhausted) IT team. Therefore, organizations can save money on operational costs by not having to hire specialists or invest in additional infrastructure. Additionally, cloud phone systems are scalable, meaning that companies of any size can easily add users and features to their systems as needed. Finally, VoIP systems provide greater flexibility for remote workers — allowing them to access the same voice and unified communication capabilities from any device with an internet connection. Remote workers can simply take desk phones to another location or use a virtual phone on their Internet-connected computer or mobile phone.

Additional Cost-Saving Features

Because a cloud phone system uses an off-site PBX, organizations reduce their electricity consumption — and hence their utility bill. They also free up usable office space that would otherwise be required to house an on-site PBX system and associated hardware.

Unlike a conventional phone system, a cloud phone system doesn’t count every single employee as a user. Instead, what matters is how many open lines (a.k.a. seats) an organization needs. This is substantially cheaper for organizations that have a large workforce, but either don’t need to give everyone their own dedicated phone line, or typically only have a small number of employees making/receiving calls at the same time.

Conventional phone carriers are notorious for increasing fees. With a cloud phone system, the price in the contract is the price that organizations pay — guaranteed. That’s good news for business owners worried about their monthly costs.

No More Outdated Equipment

When a conventional phone system reaches its end-of-life or full capacity, replacing it can cost hundreds of thousands of dollars. With a VoIP phone system, this is a non-issue. The system never needs to be replaced, and scaling up (i.e. adding more seats) is affordable, takes a matter of seconds, and can be done from anywhere through a web-based portal.

Expanding a cloud phone system to new locations is remarkably simple and 100% free: organizations simply unplug their IP phones and plug them back in at the new location. This is not the case with a conventional phone system, which comes with hefty MAC (move, add, change) costs.

With a cloud phone system, organizations can stay connected with remote workers through a free mobile app. This is simply not an option for a conventional phone system at any cost.

Advanced Features

The advanced features of a VoIP phone system bring significant additional value when compared to traditional landlines. VoIP systems often include additional features such as call forwarding, call routing, and virtual extensions, which enhance productivity and streamline communication within an organization. Additionally, VoIP systems typically offer advanced call management features like voicemail-to-email transcription, call recording, and video conferencing, enabling seamless collaboration and improved customer service. With cost-effective pricing plans and scalability, VoIP phone systems deliver an array of features that go beyond the limitations of traditional landlines, making them indispensable tool for modern businesses.

The Bottom Line

Alas, some things in life are too good to be true (like those bracelets that claim to cure arthritis). But some things in life are less expensive for rational and verifiable reasons. A cloud phone system clearly falls in this category, which is why so many organizations have made the switch. For example, here is what our customer Graham County Schools had to say:

“Our phone system had been out of date for years, and everyone we talked to said that it was going to cost us well over $100,000 to replace it — which was simply not feasible for us as a small school system with a limited budget. That is when we came across Carolina Digital Phone and everything changed. They were friendly and very well-versed in the product, and the cost was well within our budget. We also purchased affordable IP phones, and the monthly savings will pay for them in the first year or two. The experience with Carolina Digital Phone continues to be wonderful. They came and installed everything, and worked great with our IT department. I would recommend them to anyone looking for a new phone system!” Robert Moody, Assistant Superintendent at Graham County Schools

To learn more about how we can help your organization reap substantial and ongoing savings, contact us for your free, no-risk, and no-obligation consultation and demo.

We can visit you at your location, or connect with you over the web. Call us now at (336) 544-4000.