We consistently find that customers can substantially reduce upfront investment in hardware and installation as well as ongoing monthly operating expenses.
Our analysis here is for a typical 16 extension system for a branch office.
In summary, in the first year cash outflow is reduced by approximately 65%, with the total savings over a five year period of 40%. This does not take into account the cost of capital.
- We have used real customer quotes for the cost of the onsite hardware and installation, software licences and training.
- For the phones, proprietary phones are required for most onsite systems. Our analysis uses mid-range phones in both cases. For the hosted solution, we have uased the Grandstream GXP2130
- In both cases, some network upgrade will probably be necessary. We have included the cost of a 24 port POE switch and a router in both scenarios. Some rewiring of the network drops to desks may be necessary, but would be similar in both cases.
- For the monthly operating costs. we have assumed that only 6 traditional Bell lines would be necessary to support 16 extensions with an on-site PBX. In many cases, this is on the low side. For the hosted PBX solution, there is no limit to the number of simultaneous calls.
- Monthly maintenance is based on 12% of initial hardware and licences. Often we see that this is up to 15% per year. for the hosted solution, full support including any programming changes is included in the monthly charge.
The initial investment required for a hosted solution is only 16% of the on-site installation preserving capital. Monthly expenses are 17% lower on an ongoing basis
Taking a five year view, savings in the first year would be 65%, and over a five year period would be 40%.