Reliability

Cost

Functionality

These are the 3 keys points to consider when comparing a hosted VOIP pbx phone system against the traditional PBX, or a Commander phone system. Why are these 3 points so important when comparing phone systems?

Reliability

Firstly, what are the pros for a traditional PBX onsite phone system:

Known branded phone systems that have for many years just worked

Plenty of providers to support current and up to date phone systems

What are the cons:

Cheap hardware built in Asia, costing no more than $250 to make, yet you pay over $6K for.

Onsite phone system technology moves too fast, parts and support will run out

Phone lines get "cut" in the street, no customers can ring your business, they get a busy tone

Phone system dies, minimum of 6 hours before it realistically gets fixed

Try selling a 2nd hand phone system, good luck getting back more than 15% of the purchase price

So what are the pros for a hosted VOIP phone system:

The hardware in a "data centre" is second to none, much more advanced than any traditional onsite phone system

Multiple redundancy connectivity paths to hosted VOIP phone system at "data centre"

The street loses phone lines, you don't lose your phone lines! *

Your business premises has a small fire in the adjacent building and you can't work in your officefor 48 hours as advised by the Fire Dept, take the handsets home, you are now operating.

Costs

Traditional PBX onsite phone system would be for say 6 line, 4 handset solution, with no VOIP capability:

$5,000 as a minimum for the system brand new

$1,800 in setup costs

Financed over a 5 years period, total to around $9,200

Resell value after 5 years if in great condition: $800 max

These phone systems come over traditional phone service and have the usual higher call costs

Hosted VOIP phone system for say 8 business lines & 4 handsets:

No hardware costs

Monthly costs start from around $30 / month

Start from $50 setup costs

No financing over 5 years

Nothing to resell

These phone systems come over more cost effective "call costing" methods and have generally lower call costs, but still have the same reliability as traditional phone services.

Functionality

What functionality can you expect to get from a traditional PBX phone system:

Transfer calls internally

Place customers on hold, giving them hold music

No IVR (Introduction message when customers call your business) #

No conference calling

No ability to see each extension call history for billing, or other purposes

Want to add functionality like adding 2 extensions, start budgeting 12 months before hand, it is expensive

Give a professional feel to your customers actually having a phone system

What functionality can you expect from a hosted VOIP phone system:

Transfer calls internally and externally

Place customers on hold with either default music, or customised music supplied by you

Full IVR functionality

Conference calling

The ability to see each extension call history for billing, or other purposes

Want to add functionality like adding 2 extensions, simply done by logging onto provider portal, select the 2 extensions, plug handsets and your done. Costs no more than $25 extra to do so

Voicemail on the extension gets converted to an audio file and sent to your email inbox

Want to operate from home, take the handset home and just plug it in to the Internet or create a new extension, simple

Have your extension and mobile ring at the same time, answer the best device at the time, simple

Give a professional feel to your customers actually having a phone system.

OK, so there are some traditional PBX onsite phone systems that may have more # "bang for buck" by having more functionality above, but also you can pay more for even less functionality. Equally not all hosted VOIP phone system providers are on the same "wavelength" and they vary as well. The above information is in my experience of over 19 years in this market space.

In summary, why would anyone stick with a traditional, older technology based PBX onsite phone system? Well, change. Changing the mindset of the person making the decision and key influencers in the decision is the primary reason. Whilst Keep it Simple I.T. can provide these solutions for the customers that "feel" they are not ready as yet to move to this superior solution, we at least give them the right advice and the path to move to this hosted VOIP phone system at a later date. After all, as a business owner you need your options spelled out clearly so that your technology strategy moving forward is simplified.

Contact us if you need any assistance, we are here for your business.

* this option is not standard, however not overly costly either. To have multiple connectivity paths for your voice communications you are looking at an extra $60/month, yes only $60 and you can more or less guarantee your "uptime".