How Much Do Premises-Based Phone Systems Cost?

The cost of the Private Branch Exchange (PBX) hardware

You’ll need to factor in the hardware cost to have a reliable on-premise PBX system. This includes a server, cards, routers, switches, and a battery backup. The total cost of the hardware can add up to thousands of dollars. In addition, you’ll need to factor in the cost of installation and maintenance. As a result, on-premise PBX systems can be expensive to set up and maintain. However, an on-premise PBX system gives businesses complete control over their telephone system and can provide features and flexibility that may not be available with hosted VoIP solutions.

Setup, installation, and ongoing maintenance costs

When considering a new business phone system, it’s important to factor in the setup, installation, and ongoing maintenance costs. If you purchase your server hardware and software licenses, you’ll likely be charged by an outsourced technician for setup and configuration. Alternatively, you can hire My FoneTel to take care of everything. Either way, you’ll need to hire a team of professionals to keep your system running smoothly or outsource the job every time you need to change the phone system.

The cost of the phones you choose

Many business owners fail to realise that the phone handsets you choose can have an even more significant effect on your long-term costs than the initial purchase price. Not only do you have to pay for the IP phones upfront, but any improvements or updates will also be your responsibility to fund over time.
On-premises phones offer a high degree of flexibility and control, giving organisations greater freedom in terms of changes and upgrades. Ultimately, while the cost of on-premise systems may initially seem more daunting than other options, it is crucial to take a holistic view when making your purchasing decision.

PBX software licenses

In the world of PBX software, licensing fees are traditionally based on the number of users on a given system. This makes sense because each user requires their own dedicated voice or data line to access the PBX and make phone calls or send data. The cost would be dependent on the size of your business. However, some licenses come cheaper with a larger size than those for only a few users.

The Advantages of On-Premise Phone Systems

Control and management

On-premise phone systems allow for on-site controllability by communication managers and business owners, but will most likely require someone trained to do so.

Consistent Voice Quality

Because you control the system, the voice quality is as good as you want it to be. Most businesses would use a different internet connection plan for their on-premise phones to keep the voice quality as it would not share any bandwidth with internet browsing activities.

Lower overall monthly cost

Your business practically owns the phone system. This means that the monthly costs would be for the ownership and use of the advanced features compared to continuous monthly rent on hosted systems. As soon as you have completely paid off the hardware, all you will be paying for are the licences and the occasional phone technician visit for system updates and upgrades. Or better yet, train your IT staff to be an in-house phone technicians. If the business goal is to eventually keep the on-premise phone system, it’s better to own the system. If the business goal is to keep renting a low-cost phone system for years and years, opt for a hosted phone system.

Ownership of the system

The most significant advantage of an on-premise phone system is ownership. The desk phones, software, and hardware all belong to the business, compared to a hosted system where you are essentially leasing them from the VoIP service provider. Owning the system means that your business communication will not depend on the service provider’s existence. In the instance of significant changes within the internal structure of the service provider, your business communication would not be in trouble.

Why Do Perth Businesses Choose My FoneTel?

Secure network
We take security very seriously. We employ the most advanced security protocols to ensure your connection and information remain private and secure.
Solutions that scale with your team
We tailor our on-premise phone systems to meet your business needs.
Local support team.
We are in Western Australia, and we share the same time zone. Our dedicated team can provide you with support in real-time since we have the same business hours.
Reliable connection
The reliability of our connections is one of our strongest assets. If we encounter an outage by any chance, we will be able to resolve the problem before you are even aware of it.
Over 50 years of experience in the telco industry.
With the industry’s development and growth, we have grown and developed along with it.

Frequently Asked Question About
On-Premise Phone Systems

As your business grows, you may find that your current phone system can no longer meet your needs. If you’re considering upgrading to a new system, you may wonder whether an on-premises system is the right choice. There are several factors to consider when making this decision, including cost, scalability, and features.

An on-premises system can be a significant investment upfront, offering more flexibility and control than a cloud-based system. You’ll be able to customise your system to meet the specific needs of your business, and you won’t have to worry about data limits or service outages. You can also scale up on-premises systems more easily as your business grows, so you won’t have to worry about switching to a new system.

However, an on-premises system does require more maintenance and IT support than a cloud-based system. If you don’t have in-house IT personnel, you may need to hire someone specifically to manage your phone system. And because on-premises systems are located on your premises, they’re more vulnerable to natural disasters and power outages.

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