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Toshiba Telecommunication Systems Division

VIPedge cloud services costs compare favorably to purchasing an on-site telephone system

Beyond all the cloud hype, the benefits of cloud-based telecommunication solutions must provide tangible results. This means making your telephone system easier to acquire, implement, and maintain, as well as saving money in the process.

Plus, one of the main advantages of cloud services is to increase business agility to accommodate ongoing change within the organization. This is much easier done with a cloud service than a PBX system with finite resources. As your organization grows, there is no expensive hardware add-on purchases needed to accommodate additional users. Best of all, you’re never stuck with any obsolete system equipment.

While there are some up-front costs to cloud services, it pales in comparison to the cost of implementing an entire on-premise PBX system. Having predictable monthly service fees with a single provider enables you to better manage long-term costs.

The example below compares the 5-year cost of the Toshiba VIPedge cloud service to an equivalent on-premise PBX system purchase. The VIPedge yields significant savings over a system purchase.

10-user Example (estimated 5-year comparison)
On-premise PBX
Initial cost of equipment purchase $1,580 $5,000
Installation and training charges $500 $1,500
Telephone lines $0 $9,000
Dedicated broadband Internet $5,400 $5,400
Local and Long-distance charges $0 $4,800
Redundancy/survivability $0 $4,000
Administration, operations, and support personnel $2,900 $11,500
Software upgrade costs $0 $1,500
PBX equipment maintenance $0 $3,000
Facilities costs (power, insurance, space allocation, etc.) $300 $1,200
Cloud service fees $18,000 $0
Total: $28,680 $46,900