2 weeks ago Last updated July 29th, 2020 37 Reads share

3 Cost-Effective Factors When Moving to the Cloud

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It is always a matter of concern to know which factors affect the cost when moving to a cloud-based communication system. It is an undeniable fact that before moving, you will need a clear, valid business case that your management can understand and support. No doubt switching to VoIP could bring faster speeds, innovation, and agility, for any digital transformation, you will need a specific cost. Therefore, you may look for ways through which you can save a bit of cost. Usually, business communication is not seen as a significant source of savings. You may think that you have to use an outdated system because you signed a contract with the provider, or you may worry that with your number of employees, the system might be more expensive and time-consuming.

However, switching your communication system to cloud-based can help you save. In this article, we are going to discuss the factors which can help you save some hard-earned pounds while switching to the cloud-based platform.

  1. Upfront cost investment/initial equipment
  2. Scalability and adding new channels of communication
  3. Yearly maintenance and support contracts

Since semantics are significant, the International Data Corporation (IDC) defines integrated communications and collaboration as:

‘The integrated communications and collaboration is a platform that joins the IP telephony, instant messaging, messaging, conferencing and presence with the collaborative application and services which enables a flawless real-time communication and collaboration anyplace, anytime and on every possible device. These kinds of solutions are made to offer a way of distributing, running, and supporting several kinds of IP communications and collaborative application software and services which a business needs in both vertical and horizontal industry business methods and applications.’

Remember this definition, while we review the following factors in detail:

Upfront Cost Investment/Initial Equipment

There is usually an upfront cost that comes with having a traditions on-site private PBX system. The cost includes charges for the PBX equipment, router, network, and software licenses, etc. Furthermore, there is also a monthly bill for services and maintenance.

Companies that have a legacy PBX system in operation can switch to SIP trunking, but if their technology was not used previously for the IP telephony, then they will have to invest in a VoIP gateway. Further, the charges just don’t end there. There is an additional cost in the form of:

  • Setup fees for SIP
  • Charges for number porting
  • Buying handsets which are IP-compatible
  • Monthly service charges

In general, the monthly service charges include the facility of making and receiving local and long-distance calls; however, additional features like conferencing, interactive voice response (IVR) and mobility etc. are separately charged. Furthermore, you still have to pay the costs which are come with the maintenance and managing of the PBX system. Then, at the time of retirement for older equipment, you will have to invest in new equipment.

On the contrary, with cloud-based communications, there are no big expenses but just a onetime expense of implementation. When there is no need for equipment, it can save you quite a lot of cost.

Scalability and Adding New Communication Channels

With on-site communication systems, if you want to add or remove any new lines, then you will have to consider the impact on the existing system needed to support the new expansion. Therefore, if you ever think about expanding your business, then you will need to invest in more equipment, like-new phones, and you will have to buy new licenses. And, if you have an old PBX system, then you will find that the maintenance and repair is a lot harder.

The old PBX systems could only provide you with facilities like phone calls and basic collaboration, whereas today’s systems are capable of providing you with a lot more. These systems can offer a plethora of communication applications and collaboration like instant messaging, chat, audio, video and web conferencing, online meetings, etc. several providers may sell one or two elements from a set of collaboration tools.

As a potential user of such a communication system, can you see the issues with such an approach? 

You might not realize that when multiple providers offer different elements from a set of collaboration, you will end up with portions of data silos. Consequently, it will become a quite complicated and tedious process to get critical insights into your business into consumer behavior and interactions from these fragmented individual endpoints.

Annual Maintenance and Support Contracts

These are the costs for the upgrade of licensed products, hardware maintenance, troubleshooting, and technical support. There is a particular fee for maintenance and support, generally, which ranges from 17 to 22% of a client’s software license charges. Further, they are likely to be multi-year contracts. Professional services charges or paying third party providers are responsible for supporting all upgrades and enhancements because of ‘customizations.’ You might have experienced that with time these costs increase quite quickly without any flexibility or negotiation. Some companies even feel like they have been extorted and just can’t get over the frustration they feel.

In comparison, the cost of cloud-based services and maintenance as clear as it is a part of a predictable, constant monthly price. This kind of clarity and straightforwardness gives your company greater control while you plan and manage your IT budgets.

Now, the purpose was not to say that you can’t recognize the saving factors while switching to hybrid cloud communication. However, it is still quite multifaceted and costly for your IT team, both in terms of source and effort. Also, what kinds of savings are there when you have to staff and administer what you have on-site?

This is where VoIPBusiness is unique in terms of what it offers. It is a single system of engagement that is integrated with systems of record for a single set of data in one system of intelligence. Particularly, with VoIPBusiness’s completely integrated cloud communication system, businesses can:

  • Manage every single application for each engagement needs easily.
  • Interact with context
  • Have integrated engagement suit with analytics
  • Decrease prices while also maintain a high-security agreement

Even though cost savings and advantages gained are different based on the number of users and ever business’s particular requirements and prices, a single cloud system delivers a lot of favorable TCO (Total Cost of Ownership) in comparison to an on-site system or hybrid cloud environments.

DepositPhotos – cloud network

Sana Tahir

Sana Tahir

As an expert in VoIP phone technology and peer to peer lending, I write from experience. My content provides the helpful tips and suggestions to businesses of all types and sizes. With my content owners can learn to improve their business communication and getting finance sorted out with peer to peer lending.

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