Aug 7, 2020
Question: What is the true cost of cloud telephony
Answer: It’s a
lot cheaper than legacy telephony systems.
One of the biggest differences
is when cost are incurred.
An organization used to pay
large sums of money upfront for the equipment, licenses, specific
Doing this required accounting
math (which I’m not good at by the way) to determine how long the
telephony platform was held until reaching a break even
That changes with the
Moving to a subscription model
allows that same organization to pay for the services they
Cloud telephony providers will
give incentives for cheaper rates if a business commits to a long
But at least you’re not stuck
with a platform that requires expensive upgrades to stay compliant
with a vendors offering.
True cost example
As far as the true cost go, it
depends on what’s being used.
Referring to my 8x8 cloud phone
system as a starting point, let’s consider the following scenario
for 10 telephony users at a small accounting firm.
They want to pay the least
amount of money upfront to replace their aging telephony
10 user licenses at $25 per
license per month.
10 desk phones (leased) at
$5 per unit per month.
Total monthly service =
That’s pretty inexpensive
considering this includes:
If the small business wanted to
save even more money, they could have some users skip the desk
phone payments and use the free
That’s it for cost using the
most basic features.
The 8x8 example used real
numbers that can be applied to your specific
What you’ll be actually charge
depends on the provider used and the features / services required
for your business.
Also keep in mind that the
expenses tied to managing telephony platform shifts to the cloud
provider. So an organization needs to focus only on the local IT
The cost of cloud telephony
today is significantly less expensive than legacy systems of