When considering purchasing a Voice over IP (VoIP) phone system one must decide between a stationary system (device remains locally with you), or a cloud based phone network (device connects through the World Wide Web and hosted at a data hub elsewhere). It is important to develop knowledge of the differences between using stationary and cloud based phone networks, so you can receive the best return on your investment.
Various stationary PBX providers don’t advertise the same details in their hosted devices as they do for their stationary network systems. If queues, IVRs and conference calls aren’t offered or come with additional costs, the device likely isn’t a feasible option. Algo’s hosted VoIP phone system comes with everything you need making the phone system set-up and transition an easy one.
Costs of Purchase
The acquisition cost for hosted VoIP systems are relatively low and are usually debited once a month per customer. A VoIP with a local server comes with a larger acquisition cost, but no reappearing monthly charge. If your company employs between 5 to 15 people, a hosted VoIP may be the best solution. Nonetheless, even companies with more than 100 employees decide for a cloud based phone network based on different factors. If you have any questions or not sure which system will work best for your company, speak with an expert VoIP consultant today.
Total Operating Cost
A cloud based phone network usually has a small total operating cost, due to savings in IT employees. Additionally, the host provider looks after the server configuration and upkeep, which may make a hosted VoIP more attractive than a stationary VoIP.
If you are using legacy connections like Time Division Multiplexing (TDM) your connection to the Public Switched Telephone Network (PSTN) may become expensive. Customers can see expenses going down when they convert to a VoIP trunk or a hosted PBX. We wrote a whole article on how you can save money with a cloud based phone system. However, if you would like to continue using your current lines, a stationary phone network is the best solution.
Economies of Scale
If you plan on expanding your company quickly, you will have to think about how this will impact your investment. When you buy a stationary network it is best to buy a bigger device than needed in the beginning to allow for business expansion. A hosted VoIP can easily accommodate new employees in the cloud network as required. Algo’s Hosted and Cloud Telephony Solutions will make sure you receive the tangible business value you’re looking for. It will allow you to integrate all your employees through cloud based networks without any loss of quality, no matter what device they are linked with.
An important aspect of your business communication is which phone network you are using. Both stationary phone systems and hosted VoIP networks have their advantages and disadvantages. Our consultants at Algo Communications Ltd. are here to help you reach a decision and set you up with the best phone system for your company. Give us a call at 1-800-226-7722 or find out more about us on LinkedIn or Facebook!