Hosted VoIP can often be more expensive.

Companies are installing an On-premise IP-PBX to lower expenses.

April 27, 2022

News & Commentary

Many companies currently recognize that on-going monthly costs associated with hosted VoIP solutions can be considerably lowered without sacrificing business features by installing their own on-premise PBX. This becomes even more of an advantage if the IP phones are owned and call volume is not out of the ordinary. A number of outstanding IP-PBX appliances that can accept IP phones, such as Polycom, Grandstream, Digium, Sangoma and Yealink.
Phones frequently represent the substantial portion of the total expense when acquiring a new on-premise IP-PBX system. For instance, consider that 40 mid-range VVX 450 Poly phones would run about $10,800.00. That represents the chief portion of a typical installation. With phones presently in place, the common requirements would be to install and configure the new IP-PBX, re-provision the phones, and then connect to an affordable SIP provider to handle calls. The savings can be significant.

Consider a typical hosted VoIP provider's costs.

A typical hosted cloud-based PBX plan of forty extensions might cost $28.00/month each and include unlimited calls within the US/Canada. That's when paid annually or $13,440.00 in one payment for the year. Or $38.00/month each or $1,520.00/mo. every month for those that pay monthly.

Costs associated when employing a SIP provider.

Consider that on average US outbound VoIP call rates range between $0.005 and $0.04 per minute. Each SIP metered channel varies between $1.70 and $15.00 per month. Unlimited or unmetered SIP channels often range anywhere between 20.00 and 30.00/mo. Each concurrent call requires one SIP channel.

Which companies are often the best candidates?

Typical companies like retail, real-estate and non-profits with twenty to fifty phones are likely exceedingly good candidates for an on-premise solution.

Establishing if your company represents a prime candidate for lower costs starts by examining phone minutes used. In addition, survey which extensions experience significant volume and which ones don't. This leads to a general idea of how many SIP channels should be required and an approximate cost for metered minutes. A current IP-PBX that can be matched with most SIP compliant phones is likely to cost anywhere from several hundred dollars to perhaps two thousand for a 50-user appliance plus installation costs.

For companies that suspect they would benefit from changing to an on-premise IP-PBX, often the best course of action would be to talk with a professional.


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