VoIP Resources VoIP Fundamentals Introduction to Business VoIP

The Costs Savings of Business VoIP

by OnSIP

You'll discover cost savings around every corner once your company switches over to a business VoIP service.

When business VoIP was first introduced, it was commonly regarded as a low-cost alternative to traditional phone services. But in the present business climate, VoIP systems also offer greater competitive and economic advantages. Even if a firm does not intend to utilize any advanced VoIP features, it stands to benefit from switching over on the basis of financial feasibility alone.

Getting started with business VoIP does not require much investment, and the cost savings continue to add up as time goes on. Business VoIP enables organizations to save money in at least two ways:

1. Direct Costs Savings of Business VoIP

To get traditional phone service, a company has to invest in business phones and PBX hardware. These one time expenses are generally amortized over a number of years. Analog and VoIP phones cost about the same, though the exact price will vary depending on the features needed.

But PBX installations are an expensive capital incursion. They can cost anywhere between $500 to $2000 per user. Even if you consider a low-cost system, a business with 10 employees will have to invest significantly in physical hardware to power the phone system. With hosted business VoIP, new expenditures essentially amount to zero, because all it requires is a capable internet connection. In fact, you don't even need to incur the expense of physical desk phones to keep employees in touch because many providers, like OnSIP, provide softphone apps for their customers— OnSIP's desktop app and mobile app are free for OnSIP users.

With on-site PBXes, there are ongoing expenses such as usage fees, maintenance, and taxes that can quickly add up to substantial monthly costs. In the case of business VoIP, maintenance fees and taxes are rolled into the subscription plan. Usage fees are also significantly less since most vendors offer unlimited long distance calling within the United States (and sometimes Canada) which account for the bulk of most phone calls. 

2. Indirect Costs Savings of Business VoIP

With business VoIP, employees are able to take phone calls regardless of their locations. This allows them to work from home, a practice which can save a company thousands of dollars in utilities and office space. Some employees are also more productive when they are in a quiet environment rather than a crowded office with colleagues.

Furthermore, VoIP has several advanced features such as conference calling, instant video calling, and simulring. This allows staff to collaborate on projects without having to travel across the country. Not only does this save travel expenses, but it also frees up valuable time for employees.

The choice of a business communication system has long-term consequences for the growth and profitability of an organization. The difference in costs alone between a traditional phone service and SMB VoIP are substantial. When you add the productivity improvements, efficient operation and flexibility it enables, it is clear that business VoIP is the better choice for most businesses.

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