What is the cost of Hosted Phone System vs. On-premise PBX?

Hosted PBXs typically included the cost of your dial tone (Ma-Bell). In comparison an on-premise PBX requires charges separately for their dial tone services. So when calculating the true cost of hosted vs. on-premise phone systems please include the cost of your dial tone service so you will know your true monthly price.
The initial set up of a hosted phone system is sometimes less costly and may not be as labor intensive as an on-premise PBX, but the contract you typically need to sign to lock in prices often sacrifices all flexibility. These contracts are usually 24 to 60 months long. Hosted PBXs charge a per phone monthly rental rate rather than by actual equipment charges. Typical charges are $25 to $35 per month per phone, with extra charges for additional features. Most hosted carriers also charge a rental for telephones; if the phone is part of their package you may be getting a very low grade telephone. A higher end phone may carry additional charges and fees. Hosted phone systems most often end up costing significantly more per month than on-premise or self-hosted PBX. While most hosted providers advertise ‘unlimited’ minutes, usage is typically capped at or around 3,000 minutes per month. An important calculation to perform is to divide your average monthly minutes per user into the cost of the ‘unlimited’ plan and see how that per minute rate stacks up. Now check the rate you’ll get from a selected dial tone providers to your on-premise, Self –Hosted system.

On-premise phone systems can require more infrastructure investment up front, but we make it easy to share lines among as many phones as you need. Some carriers often only bill for the minutes you use. There is great flexibility in combining standard carrier service and select dial tone SIP phone-line providers. On Premise systems allow you to have multi dial tone carriers – i.e. at&t + Sip provider.
In our opinion it is much more convenient when you are in total control. We have heard the bad and unrepeatable from customers we have helped to remove them from their hosted phone systems. Some we have not been able to help due to their contract with their hosted provider. We want the control to be in your hands with our help. We have felt the frustration of customers as they revealed struggles to fit the hosted solution around their business requirements.
By implementing an on-premise system, you buy the assurance that whatever comes your way you are in total control of your business communications.

And with control comes convenience.

TECH SUPPORT: Hosted providers often use technicians in different states and sometimes different countries to provide remote support. This is after you have spent several minutes navigating their automated system (press 1 for English, press 2 for Spanish, is this for new service or existing service…). It can be difficult to get someone experienced enough to resolve your problems on the first call. You usually will not be able to work with the same technician if you need to call back regarding your issues. Plus, hosted providers normally don’t have local support that can be dispatched to your location if you require an on-site visit. You will be their arms and legs for on-site troubleshooting.

When you select the on-premise IP-PBX, you’ll have the support of your local Amtel tech team. You will be trained to self-program using a easy to understand GUI interface. This means you’re in control of support, and a live Amtel tech can come to your office to troubleshoot and help maintain your system when needed. We also have the ability to remotely program and maintain your system. Keeping your service quick and efficient.

For a free consultation please contact our office at 713-977-1000

There are cases where Hosted phone systems are a good decision and we at Amtel have recommended hosted. No one wants to make a bad decision. We want you to know all the facts.