VoIP Cost Comparison

To do a VoIP Cost Comparison, we first have to look at what subscription plans and software systems have in common, how they’re different, and how the differences affect the overall cost of ownership.

Cloud-Based Subscriptions

Many of the most common names in VoIP today are cloud based subscription services, like RingCentral, Vonage, and Spectrum VoIP.

Monthly subscription plans start at about $25 per extension and go up from there. There are no start up costs, and no local server is required.

Note that the backbone of a subscription service is also a software PBX. The difference is that with a subscription service, you’re renting (not buying) the software and they control your access to it.

Software PBX

Software PBX systems started with Asterisk – mostly for techies and not really an “out of the box” solution for average offices. When hosted subscription plans became available, many offices migrated to them because in-house systems were too much trouble to maintain without tech expertise.

Modern Software PBX systems have come a long way since then and are much easier to setup and maintain. They can be hosted onsite or on a cloud server. The big difference in owning a system is control – you choose how many phone lines you need and how much to spend on them. Most importantly, since you’re not paying by extension, you can put phones where you need them without worrying about additional monthly costs.

General Cost Comparison

Cloud-Based Subscriptions

  • No upfront software costs
  • No on-site server
  • Only offer their SIP Trunks
  • Charges a flat fee for each extension (regardless of usage)
  • Unlimited calling is included in the monthly fee

20-Person Office Example

  • Medium sized office with 20 extensions
  • Variable upfront cost for phones (same as Software)
  • No upfront cost for system
  • No Local Server required
  • Flat fee of $500 per month (assuming lowest tier plan; could be twice that much)

5-year cost: $30,000

8-Person Office Example

  • Small office with 8 extensions
  • Variable upfront cost for phones
  • No upfront cost for system
  • No local server required
  • Flat fee of $200 per month (assuming bottom tier plan; could be twice that much)

5-year cost: $12,000

Software PBX

  • Annual software license
  • Upfront cost of a computer (or monthly cloud fees)
  • Can use SIP Trunks and Analog Lines in any combination
  • Doesn’t charge by extension at all
  • Pay as you go with SIP Trunks and/or Analog Phone Lines

20-Person Office Example

  • Medium sized office with 20 extensions
  • Variable upfront cost for phones (or use free Smart Phone or Desktop app)
  • Annual 8-call 3CX license : $265
  • Windows or Linux desktop to run the 3CX software: $200
  • Monthly SIP Trunk charge (unlimited incoming, 5000 minutes outgoing): $100

5-year cost: $7,525

8-Person Office Example

  • Small office with 8 extensions
  • Variable upfront cost for phones (Smart Phone extensions are free)
  • Annual 4-call 3CX license : $145
  • Windows or Linux desktop to run the 3CX software: $200
  • Monthly SIP Trunk charge (unlimited incoming, 2000 minutes outgoing): $60

5-year cost: $4,525

Stop Overpaying for VoIP!

If you're currently using one of these monthly subscription VoIP providers, you could be saving thousands per year with Erling Business Phone Systems powered by 3CX.

RingCentral, Vonage, 8×8, Nextiva, Mitel, Spectrum VoIP, Ooma Office, Net2Phone, Zoom, Jive Communications, MegaPath, VoIPLy

Call 512-696-1515 for a VoIP Cost Comparison today!
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