The customer chose to scrap their system in favor of hosted VoIP. We weren't surprised they chose hosted voip but from a business perspective we were puzzled.
Here is what they paid with a 2 year contract:
- $300.00 monthly service charge
- $30 per month per telephone ($360)
- So figure $660 per month for 24 months = $15,840.00
- That price includes all of their US and North America long distance
They could easily switch to a cable phone service and repair their Nortel BCM:
- 5 lines from a Cable company with high speed internet and unlimited long distance: $300 per month
- That works out to be $7200
- Plus the repair cost of $1600
- Total 2 year cost: $8800!
Technically speaking, hosted VoIP is pretty cool and you don't have to worry about any equipment to maintain. But what are the drawbacks:
- You could have quality issues on your LAN
- The chance of an outage is not reduced compared to your own equipment or a cut cable on the street.
- You may have to re-wire your office
- Can you trust the cloud?