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Beyond all the cloud hype, the benefits of cloud-based telecommunication solutions must provide tangible results. This means making your telephone system easier to acquire, implement, and maintain, as well as saving money in the process.
Plus, one of the main advantages of cloud services is to increase business agility to accommodate ongoing change within the organization. This is much easier done with a cloud service than a PBX system with finite resources. As your organization grows, there is no expensive hardware add-on purchases needed to accommodate additional users. Best of all, you’re never stuck with any obsolete system equipment.
While there are some up-front costs to cloud services, it pales in comparison to the cost of implementing an entire on-premise PBX system. Having predictable monthly service fees with a single provider enables you to better manage long-term costs.
The example below compares the 5-year cost of the Toshiba VIPedge cloud service to an equivalent on-premise PBX system purchase. The VIPedge yields significant savings over a system purchase.
10-user Example (estimated 5-year comparison) |
VIPedge |
On-premise PBX |
Initial cost of equipment purchase | $1,580 | $5,000 |
Installation and training charges | $500 | $1,500 |
Telephone lines | $0 | $9,000 |
Dedicated broadband Internet | $5,400 | $5,400 |
Local and Long-distance charges | $0 | $4,800 |
Redundancy/survivability | $0 | $4,000 |
Administration, operations, and support personnel | $2,900 | $11,500 |
Software upgrade costs | $0 | $1,500 |
PBX equipment maintenance | $0 | $3,000 |
Facilities costs (power, insurance, space allocation, etc.) | $300 | $1,200 |
Cloud service fees | $18,000 | $0 |
Total: | $28,680 | $46,900 |
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