For small businesses, traditional analog phone systems might seem like a smart choice with their simplicity and reliability, but most businesses with traditional analog systems face unexpected costs during and after installation. While the initial costs may be low, the limitations of the system are not worth the maintenance and upkeep. Analog systems can tie you down to one location and also lack the flexibility and innovation that your business needs. Modern functions and features come as an extra cost along with the high cost of installation and maintenance.

Cloud-based systems on the other hand, like VoIP (Voice-over Internet Protocol) and Hosted PBX systems, can offer your business the flexibility it needs at a fraction of the cost of analog. Cloud-based phone systems work over the internet, meaning the features are almost limitless. Features like voicemail to email, user web portal, and remote office come included and business collaboration apps are easily integrated into mobile devices so business decisions can be made 24/7. Hosted PBX systems are extremely cost-effective with minimal hardware costs because the communication platform and accompanying apps all run through your internet connection. For rapidly growing businesses, your phone system can easily grow with the speed of your business.

Three Hidden Costs of Analog Phone Systems that You Don’t Know About

Before you make the choice between an analog or cloud-based phone system, it’s important to know the cost and flexibility of your system long-term. Here are the top three most common hidden costs businesses face that can be easily avoided with Hosted PBX.

1.     Hardware, Set up, Maintenance and Service Fees

With PBX systems you need to factor in setup and maintenance charges of in-house hardware. Setting up an in-house PBX infrastructure is a lot of work and can take up valuable space. You will need regular maintenance to keep the system up-to-date and there will be labor charges when you have problems. Your server hardware can fail due to spikes in power supply or overheating. The average lifespan of an in-house system is only about seven years, mainly due to the hardware becoming obsolete during that time.

With hosted PBX, you have virtually no hardware and maintenance fees. The only hardware is the phones, and updates can be made through the cloud without needing an IT person to ever set foot in your office. Most providers can swap out phones or provide new ones within 24 hours. 

2.     Paying for Growth and Mobility

Growth is a priority for every business, yet with traditional phone systems, it is not factored into the initial costs. Landlines are limited to the number of lines that you have connected and adding more means installing “phone drops” and upgrading your hardware. Companies charge high prices to install new phone lines and love to exploit your future growth for more money now. Adding a new location will add more maintenance and setup charges.

With hosted PBX, additional lines can be added whenever needed at a flat rate for every line. This drastically reduces your setup and maintenance costs as hosted services grow with your business. Adding a new location is as simple as plugging in new phones to your existing internet drops, and mobile apps allow you to take your business with you wherever you and your employees are.

3.     Expensive Upgrades and Integrations

Your business phone should be capable of a multitude of functions like voicemail-to-email, conference calling, Microsoft Office integration, and more. With traditional PBX systems, these features often cost an extra fee, plus the time it takes to have someone come install it and potentially more hardware. Software integrations on landlines are often not available and extremely expensive if they are. 

Cloud-based systems on the other hand, have extra features available from the cloud that can be switched on at a moment’s notice. Cloud can also connect all your CRM data, collaboration apps, and other business tools into a single user experience with real-time data.

Learn more from our Cloud-based PBX whitepaper

Switching to a cloud-based phone system can not only save money but also increase your business’ communication and collaboration. If you want to know more about the advantages of cloud-based phone systems, check out our whitepaper “10 Hidden Costs of and Analog PBX Phone System and how you can benefit from the Switch to a Cloud-Based PBX.”

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