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Business Phone System Total Cost of Ownership
Looking Beyond the Price Tag
Phone system costs extend far beyond initial purchase prices. Total Cost of Ownership (TCO) includes hardware, software licensing, installation, maintenance, training, and ongoing operational expenses. Understanding TCO prevents budget surprises.
Hardware Costs
On-premise systems require PBX hardware, desk phones, headsets, and network infrastructure. Cloud systems reduce hardware costs but may require IP phones or softphone licensing. Hardware decisions affect both upfront and long-term costs.
Software and Licensing
Software costs include PBX licenses, user seats, and feature add-ons. Cloud systems charge per-user monthly fees. On-premise systems may include one-time licensing with annual maintenance fees. Evaluate which model fits your budget structure.
Installation and Configuration
Professional installation adds to initial costs. Complex deployments with multiple sites or integrations require more configuration time. Cloud systems typically have lower installation costs since hardware sits at the provider's facility.
Maintenance and Support
Ongoing maintenance includes software updates, security patches, and technical support. On-premise systems require internal IT resources or service contracts. Cloud systems include support in subscription fees, simplifying budgeting.
Training Expenses
New phone systems require employee training. Costs include training materials, session time, and productivity loss during learning curves. User-friendly systems reduce training costs and accelerate adoption.
Hidden Costs to Consider
Network upgrades, additional bandwidth, headsets, and integration fees can add significantly to TCO. Businesses should request comprehensive quotes that include all potential expenses. Transparent pricing enables accurate budgeting and comparison.
Redstone Systems, Inc. founded in Delaware, USA in December 2002, has been the ODM vendor for many well-known communications companies, serving the Southeast Asian market. In 2020, Redstone Systems will begin to return to the North America market with its self-developed brand.
Redstone has a complete product line of intelligent voice gateways, providing IP-PBXs, analog VoIP gateways (FXS/FXO), digital VoIP gateways (E1/T1), border appliances, and session boundary controllers (SBCs).
With advanced technology in digital signal processor (DSP), speech coding and speech processing, as well as efficient operational tools such as cloud remote management, auto provisioning, Redstone gateways are widely used in markets of enterprise communications, cloud communications, call centers, operators’ IMS/SIP trunks, bringing users friendly, efficient and reliable communication experience.
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