Quality, reliability, security and cost are some of the usual
considerations that play a role when an organization is trying to select
an enterprise phone system. In today's world, the choice generally
boils down to hosted VoIP vs. on premise IP-PBX systems using SIP
trunks. Other than the immediate technical and financial benefits,
hosted VoIP brings plenty of other advantages to the table.
Reasonably predictable cash flows
An often overlooked aspect of hosted systems is that buying these services allows an enterprise to transfer much of the risks associated with new technology onto a third-party vendor. The company does not have to source in-house talent or depreciate high capital costs over the next decade. Payment is made only on the basis of what has been used which means that a business does not have to worry about unexpected costs.
Not only is it easy to predict cash flows for the current size of the business, but estimating future costs also becomes pretty straightforward. The organization can make reasonable projections regarding business growth or lack thereof. Calculating the approximate monthly expenses is then just a matter of knowing the specific rates that will be charged by the provider (for whatever level of service is required).
With an on-premise SIP solution, there may be unexpected costs for maintenance, troubleshooting problems, upgrading equipment or having to reinvest in new technology because the current system is obsolete. In some cases, technology innovation even necessitates hiring new personnel in order to keep the system running. Hosted VoIP allows the company to smooth out such irregularities in the cash flows.
Financial projections and business planning
Being able to accurately predict cash flows is not just a "nice to have" feature, it directly impacts business planning and strategy. Organizations spend a lot of management resources in spacing out capital-intensive projects so that one particular year does not face crippling sunk costs. Using hosted VoIP allows a business to erase the capital expenditure required for a major technology that is crucial to everyday functioning, freeing it up for alternative uses.
With conventional technology and typical phone contracts, companies generally end up paying for resources that they don't need or haven't used. Unexpected costs can delay or derail ongoing projects because funds have to be diverted for repairing/upgrading the phone systems. Organizations utilizing hosted VoIP services are better able to plan for business continuity, invest capital more effectively and implement long-term strategies with minimal interruptions.
Reasonably predictable cash flows
An often overlooked aspect of hosted systems is that buying these services allows an enterprise to transfer much of the risks associated with new technology onto a third-party vendor. The company does not have to source in-house talent or depreciate high capital costs over the next decade. Payment is made only on the basis of what has been used which means that a business does not have to worry about unexpected costs.
Not only is it easy to predict cash flows for the current size of the business, but estimating future costs also becomes pretty straightforward. The organization can make reasonable projections regarding business growth or lack thereof. Calculating the approximate monthly expenses is then just a matter of knowing the specific rates that will be charged by the provider (for whatever level of service is required).
With an on-premise SIP solution, there may be unexpected costs for maintenance, troubleshooting problems, upgrading equipment or having to reinvest in new technology because the current system is obsolete. In some cases, technology innovation even necessitates hiring new personnel in order to keep the system running. Hosted VoIP allows the company to smooth out such irregularities in the cash flows.
Financial projections and business planning
Being able to accurately predict cash flows is not just a "nice to have" feature, it directly impacts business planning and strategy. Organizations spend a lot of management resources in spacing out capital-intensive projects so that one particular year does not face crippling sunk costs. Using hosted VoIP allows a business to erase the capital expenditure required for a major technology that is crucial to everyday functioning, freeing it up for alternative uses.
With conventional technology and typical phone contracts, companies generally end up paying for resources that they don't need or haven't used. Unexpected costs can delay or derail ongoing projects because funds have to be diverted for repairing/upgrading the phone systems. Organizations utilizing hosted VoIP services are better able to plan for business continuity, invest capital more effectively and implement long-term strategies with minimal interruptions.
Bhagwad is an expert consultant on hosted PBX systems.
