How much does Cloud PBX Really Cost?

Cloud PBX costs less than you think when you consider your current assets and deduct your sunk costs.

When budgeting for your business, determining the accurate costs of your core infrastructure components can be a challenge. With a changing world around you, figuring out things like consistency, upgradability, scalability and adaptability are the keys to making the correct decisions. But when it comes to cost, this can get a little complex, especially when you are considering switching to an on-premises solution to the cloud.

For many years, we have widely proclaimed that Intermedia’s Cloud PBX system can save companies 50% over traditional solutions, and we have even taken on the challenge of proving it in our PBX phone savings study.

Now, we want to briefly summarize how this is accomplished via direct savings.  We’ll also take a deeper inside look at how many of the indirect cost savings and upfront advantages add up to help your bottom line. There are plenty of advantages and cost reductions that come with switching over to the cloud and we will try and cover all of them. Only by looking at both types of costs – those that are recurring and those that are one-time and upfront – can we really determine the true cost of Cloud PBX. Let’s dive right in.

Direct and Recurring Cost Savings:

Costs associated with regular monthly service fees and maintenance contracts are both direct and recurring costs. While you may only save a little bit on each individual phone line per month, these little savings all add up over the course of a year to hundreds of dollars. These long tail savings come in a combination of a few different areas.

Upfront Savings:

With Intermedia’s Cloud PBX, we set out to keep as much money as possible in your pocket from day one. Compared to a traditional on-premises phone system, our Cloud PBX system requires a fraction of the initial investment. Rather than requiring you to purchase control units, network servers, and the entire telephone infrastructure that comes along with it, the majority of the infrastructure for our Cloud PBX system is online--at no cost to you.  It is truly a cloud-based solution. All you need to do to get connected is to plug your chosen headset into the internet. Simple as that.

The upfront savings achieved by switching over to the cloud comes from not having to incur the hardware costs of a landline or in-house PBX system. For the average 5-phone system, this saves you approximately $4,000 on equipment. In the information age that we live in today, there is no longer a need for this costly on-site infrastructure. And we believe that you and your company’s bottom line will be happier without it.

Indirect Cost Savings:

So far, all of the costs we have covered are very visible and upfront, but there are other hidden costs that tend to pop up when dealing with an on-premises phone system. While most of them are related to upkeep and future scalability upgrades, potential costs also include switching providers and of downtime.

The Cost of Upkeep:

Also known as the cost of maintenance, these upkeep costs often come in the form of maintenance contracts, which are usually equivalent to around 10% of your total upfront system costs. For this money, you get on-site service and support, but only during business hours. At Intermedia, there is simply no on-site equipment to maintain, and any issues can be solved by calling our 24/7 support service at no extra charge.

The Cost of Scaling and Upgrading:

With a traditional phone system, when you need to reconfigure your equipment, add phone lines, or upgrade your offerings, you must pay extra, on top of your existing maintenance contract, for the ability to do so. At Intermedia, there is no additional cost for adding phone lines and no need for additional equipment beyond the cost of service and the new phone itself. Reconfiguring your devices to suit your changing needs is as easy and quick.  You literally pick up your phone and plug it into a station with an internet connection.

The Cost of Leaving:

If you ever decide to change phone providers in the future, there may be an expensive penalty fee in your contract for leaving early. While this is a nice way to lock you into staying in an expensive and unnecessary contract, it is not something that Intermedia believes is necessary. Rather than using the fear of fees to convince you to stay, we would rather provide excellent service and an incredible value for your company to keep you interested.

The Cost of Downtime:

Downtime is the enemy of all companies that rely on an internet connection to do business. When your phones go down, you can lose the ability to contact customers, process transactions, and make sales, all of which can cost your company money. To fight this, we proudly offer a 99.999% uptime SLA. In context, that is only 26 seconds of downtime over the course of a month. By reducing downtime as much as possible, we hope this will not be an issue for you when using our service.


For a customized view of how much your business will save, please check out our cost saving calculator and play around with the numbers a little bit to see your options.  Still have any questions about the potential cost savings of switching to Intermedia Cloud PBX? Give us a call at 1-800-379-7729 and we will be happy to help. 

Let’s get started

Chat with an Expert

Can one of our solutions specialist answer any questions for you?

Become a Partner Become a Partner