Cloud PBX vs Premise PBX Cost Comparison

Comparing costs between a cloud PBX and an on-premise PBX.Costs with hosted VoIP Compared

Costs associated with different business phone systems can vary greatly. Cloud based PBXs when compared with an on-premise PBX can lower costs significantly. On-premise PBX phone systems require a much larger upfront cost for equipment and installation compared with a cloud based PBX solution. Plus, installation and setup for an on-premise PBX business phone system requires trained telecom technicians that add to those initial costs. Hosted VoIP or a cloud based phone system only requires the phones as the initial hardware cost, plus setup and implementation are included at no cost.

Comparing costs between a cloud PBX and a traditional on-premise PBX shows the stark contrast in costs over the first two years.

Average yearly costs will decrease for an on-premise PBX over time, however the first few years can make a significant dent in a businesses' budget; money of which might better be used for other operational costs. Plus knowing the cloud PBX provider is constantly maintaining the system and working to add new features alleviates the need for your business to set aside money in the budget for those costs.


A RingCentral cloud based PBX will incorporate many different communication systems, further reducing costs and simplifying business processes. Streamlining systems increases ROI and can be seen in increased productivity and collaboration. RingCentral Review

RingCentral Office, the top choice for a cloud based phoneWith savings of well over 60% in the first two years of service, business owners are no longer questioning whether a cloud PBX is right for their business. Their main decision now is deciding how soon they'll make the transition.

Users find rather than having several vendors, having one provider that integrates multiple communication apps increases collaboration and improves strategies.

RingCentral Office, an award winning hosted VoIP solution, is a cloud-based business communications system with enterprise-grade voice, fax, text, online meetings, conferencing, and collaboration and our #1 Best Choice recommendation for most businesses. Offering four different plans, just about any business can move to a plan that is easy, affordable, and accessible from your home, office, or wherever you need to be. You may just find that moving your communications to the cloud is the best decision that you can make:  Top Rated RingCentral Cloud PBX


Comparison of Costs Between RingCentral Office and an On-premise PBX

RingCentral Office 20 User Cloud Based System

Upfront Costs
  • On-premise PBX hardware (server, cards) - None Required - $0
  • One-time phone cost2 - $1980
  • Setup and implementation - Included FREE
  • Integration with Business Apps - Included FREE
  • PBX software licenses - $0
Monthly Costs
  • All inclusive pricing with business class features - $600
  • Unlimited local and long distance calling 3- Included FREE
  • Unlimited Internet fax - Included FREE
  • Local numbers for each user - Included FREE
  • Toll-free number and minutes2 - Included FREE
  • Feature updates and upgrades - Included FREE
  • 24/7 customer support1 - Included FREE
  • Business SMS - Included FREE
  • Audio Conferencing - Included FREE
  • Telephone Service - N/A
  • Ongoing system management and configuration - Designed for easy self-management
  • System management optimized
    for smartphone and tablet - Included FREE
  • Service contract - No contracts required
Total Costs
  • Total Monthly Cost (includes maintenance/12) - $600
  • Total Cost in Year 1 (includes phones) - $9,180
  • Total Cost in Year 2 - $7,200
  • Total Cost Over 2 Years - $16,380

1 Customer Phone Support available for Office customers with 2 or more Users. 2 Price based on Cisco 303 model. 3 US and Canada only. Figures are based on the services represented and are supplied by RingCentral.

On-Premise 20 User Traditional PBX System

Upfront Costs
  • On-premise PBX hardware (server, cards, etc.) - $6,495
  • One-time phone cost - $3,000
  • Setup and implementation - $1000
  • Integration with Business Apps - Add'l charges may apply
  • PBX software licenses - $4000
Monthly Costs
  • All inclusive pricing with business class features - N/A
  • Unlimited local and long distance calling - $210
  • Unlimited Internet fax - $300
  • Local numbers for each user - $40
  • Toll-free number and minutes - $100
  • Feature updates and upgrades - $240
  • 24/7 customer support - $240
  • Business SMS - Not available
  • Audio Conferencing - $200
  • Telephone Service - $103
  • Ongoing system management and configuration - Requires IT or outsourced support
  • System management optimized for
    smartphone and tablet - N/A
  • Service contract - Contracts required & early termination fees
Total Costs
  • Total Monthly Cost (includes maintenance/12) - $988
  • Total Cost in Year 1 (includes phones) - $31,691
  • Total Cost in Year 2 - $17,196
  • Total Cost Over 2 Years - $48,887

When compared to a leading competitor.


The best choice for your PBX phone system.Get s cloud PBX expert's advice.Lower costs are one reason to put your business phone system in the cloud. The other advantages when moving to RingCentral Office is you'll be gaining an award winning hosted VoIP solution.

 Top Rated RingCentral Cloud PBX