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Can I Save Money with a Hosted PBX Phone System?


Hosted PBX is usually far less expensive than traditional on-site PBX, so it’s a good option for companies looking to tighten the purse strings. You’ll get the same features and functionality but pay 40 to 80 percent less in most cases.

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  • Fewer upfront expenses - With hosted PBX, there’s less expensive hardware to buy because calls are routed through an off-site data center. Don’t be fooled - you’ll still need some equipment, including handsets ($50 to $750, depending on features), additional power supplies ($10 to $20 per phone) and potentially a new router. But upfront expenses will be much less than traditional PBX. You might spend $3,000 to $15,000 to have hosted PBX installed for an office of 20 to 30 people, while traditional PBX might cost $500 to $2,000 per employee.
  • Lower maintenance costs - With hosted PBX, also called business VoIP or cloud-based telephony, you’re no longer paying a monthly fee to the local telephone company. You will pay a monthly fee to the hosted PBX provider, but the cost is usually less. And when something goes wrong with the phone system, it’s not your responsibility to fix it. The provider picks up the tab.
  • Little training or support - Hosted PBX systems are easy to use, so they require very little training and support. Chances are, you’ll be able to add users and enable additional features without the help of customer service or in-house IT staff.

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