Cost Reduction

We have previously spoken about how businesses can reduce telecommunication costs by adopting VoIP (Voice over Internet Protocol). Having recently completed an analysis for a client we thought it would be useful to review the cost benefits of the VoIP system.

  • Firstly, the savings on the PABX (Private Automatic Branch Exchange) were substantial. In considering the cost to install a new PABX system this client was looking to save 50% on set-up costs when choosing a VoIP based system.
  • Secondly, ongoing costs for the client were much lower than using a traditional phone arrangement. This comes down to a number of reasons;
    • The VoIP system is able to be set-up on an internal network. Therefore, internal calls are able to made between offices (local and overseas) for free.
    • The phone management system can be managed from any PC around the world. With most traditional PABX systems a technician would be required to physically attend to the hardware that was managing the system. This has obvious additional costs compared to a remotely managed option. It is also a less timely and convenient option for many busy businesses.
    • Actual call rates per minute are competitively priced compared to using a traditional telephone company.

It is important to note that while VoIP is a communication tool that is based online, the functionality of the system itself replicates that of a physical phone system.

Finally, individual circumstances can dictate the benefits of adopting a VoIP system. Some users may in fact be better off sticking with their existing communications arrangements or adopting an alternate option. However, in general, VoIP offers a competitively priced communications solution.

VoIP is a fantastic way for business to save money and improve communications. To find out about other great ways to improve your businesses IT check out our Business IT Solutions page.

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Picture courtesy of Stuart Miles @

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