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How Much Does a Cloud-based telePhone System Cost?

How Much Does a Cloud Phone System Cost?

How Much Does a Cloud-Based Telephone System Cost?


In the digital era, businesses are constantly seeking ways to streamline operations, improve efficiency, and reduce costs. One of the most effective ways to achieve these goals is by adopting a cloud-based telephone system. This innovative technology offers numerous benefits, including flexibility, scalability, and advanced features that traditional phone systems can’t match. However, one question that often arises when considering this transition is: how much does a cloud phone system cost?

Understanding the Cost of a Cloud-Based Telephone System

The cost of a cloud-based telephone system varies widely depending on several factors. These include the size of your business, the number of users, the features you require, and the provider you choose. Generally speaking, you can expect to pay anywhere from £7 to £55 per user per month for a basic package. This could include the cost of the hardware if you require physical desk phones on desks. But unlike the “good ol’ days” you won’t have to shell out thousands of pounds for a physical telephone system which will be obsolete and in need of replacing again in 5 to 10 years time. 

1. Size of Your Business

Cloud telephone system are sold on a subscription basis so the size of your business obviously plays a significant role in determining the cost of a cloud phone system. Small businesses with fewer employees will typically pay less than larger corporations with hundreds or thousands of employees. However, many providers offer volume discounts for larger companies or those who commit to longer contracts.

2. Number of Users

Subscriptions are sold based on the number of users which also impacts the cost significantly. Most providers charge on a per-user basis which means that the more employees you have using the system, the higher your monthly costs will be. But do make sure you ask about different licence types as often providers will have seperate prices for various types of licences. For instance a reception desk user might require a higher licence type then a classroom teacher who receives the occasional call from the office but rarely makes any herself.

3. Features Required

The features you require will also affect your overall costs. Basic packages usually include standard features such as voicemail, call forwarding and call waiting. However, if you need advanced features like video conferencing, CRM integration or auto-attendant capabilities then expect to pay more.

Choosing Your Provider

There are many providers out there offering cloud-based telephone systems each with their own pricing structures and feature sets. It’s important to do your research and compare different options before making a decision.

Some popular providers include RingCentral, 8×8, and Vonage. These companies offer a range of packages to suit different business needs and budgets. For example, RingCentral’s basic package starts at $19.99 per user per month while their premium package costs $49.99 per user per month. 

Make sure you shop around as there are many Cloud telephony providers based in the UK. Saint IT can definitely assist you to find the right package.

Additional Costs to Consider

When calculating the cost of a cloud-based telephone system, it’s also important to consider additional costs that may not be included in your monthly fee.

1. Setup and Installation

Some providers charge a one-time setup or installation fee. This can range from a few hundred to several thousand dollars depending on the complexity of your system.

2. Equipment

While cloud phone systems require less equipment than traditional ones, you may still need to purchase some hardware such as IP phones or headsets.

and you may also require additional network cabling if you’re installing phones in locations where no network exists. VOIP phones are rarely wireless and we recommend always using network cables for your telephones

3. Training

Depending on the complexity of your new system, you might need to invest in training for your staff to ensure they can use it effectively.

Conclusion: Is a Cloud Phone System Worth the Cost?

While the cost of a cloud-based telephone system can seem high initially, it’s important to consider the long-term savings and benefits it offers. These systems are more flexible and scalable than traditional ones, allowing you to easily add or remove users as your business needs change. As we already alluded to in the introduction you can start with very low up front costs and there’s no risk of your system becoming obsolete and in need of replacement.

Moreover, they offer advanced features that can improve productivity and customer service – ultimately leading to increased revenue. Plus, because they’re hosted in the cloud, there’s no need for costly maintenance or upgrades.

In conclusion, while the cost of a cloud phone system can vary greatly depending on various factors, many businesses find that the benefits far outweigh the costs. By doing thorough research and choosing a provider that fits your specific needs and budget, you can leverage this innovative technology to drive growth and success in your business.