UCaaS versus On-Prem PBX cost

UCaaS Cost

UCaaS versus pbx cost

TCO Analysis: UCaaS vs. On-Prem PBX

What is UCaaS? Unified Communications as a Service (UCaaS) is a Market Insights delivery model in which PBX (Private Branch Exchange) telephony networks and collaboration services are outsourced to a 3rd party and delivered over an IP network, typically the public internet. Key Business Drivers: • Desire to eliminate onsite hardware and associated maintenance and management costs • Need for redundancy to mitigate costly outages • Enablement of a uniform telephony experience for all users, regardless of location • Cost savings through affordable IP delivery

Industry Trends Consensus among the IT analyst community Market Insights clearly points toward rapid and accelerating growth for the UCaaS market. Global UCaaS revenue is expected to grow to $24.8 billion by 2024 from $15.8 billion in 2019, at a compound annual growth rate (CAGR) of 9.5% during the forecast period. A Fortune Business Insights report predicted the global market would reach $36.4 billion by 2026. While the cited research was conducted prior to the widespread outbreak of Coronavirus, industry UCaaS Industry Growth analysts generally agree that the pandemic will accelerate adoption of cloud communication technologies like UCaaS. $15.8B $24.8B $36.4B 2019 2024 2026

UCaaS TCO: Executive Summary Save $893.5K by switching to UCaaS Based on your input parameters, Cloud Phone Nation estimates that migrating to a UCaaS solution will result in saving $893.5K (49%) in the total cost of ownership over the 6 yearlifecycle of an alternative on-prem PBX solution. Key Drivers of Cost Reduction 1. Voice, Usage, and Maintenance: with UCaaS, unlimited usage and support is typically included in the PBX seat cost 2. Conferencing and Features: cloud-based solutions like UCaaS typically have a lower cost for features due to a lower cost of delivery via IP networks 3. Installation and Support: client setup and IT support costs are generally lower without the onsite hardware considerations of an on-prem PBX

UCaaS: Business Drivers • Collaborate more effectively: when voice and telephony are integrated with conferencing, email, and instant messaging, little efficiencies emerge in every interaction. Those efficiencies may seem of small import individually butultimately translate to untold billions of dollars in value when multiplied across organizations over time. • Maximize IT’sImpact: with maintenance-free communications and rapid deployment, your IT staff can focus efforts on unlocking incremental value as opposed to upholding table stakes functions. • Simplify Vendor Management: eliminate the stress of managing separate service providers for each IT function (PBX, Connectivity, Voice, etc.) • Improved User Support: your UCaaS supplier will take care of new user onboarding and manage help desk tickets – streamlining these processes for all users while simultaneously reducing the burden on your IT staff. Users at disparate branches receive the same high-level support as users at your HQ.

UCaaS: Tech Benefits • Upgrade Seamlessly: UCaaS frees organizations from expenses required to support, maintain, and upgrade traditional on-premises phone systems. In this model, businesses are always on the latest version, with access to a full suite of next-gen features. Moreover, these upgrades typically take place seamlessly in the background. • Eliminate Downtime: For companies that rely on phones to transact business, the cost of downtime can reach tens or hundreds of thousands of dollars per hour. UCaaS platforms are generally redundant across multiple data centers, meaning failover is inherently built in. In the on-prem world, many businesses don’t build a DR site at all; when they do, it can be very costly (upwards of 40% of the cost of the primary site). UCaaS delivers that for free, with a guaranteed SLA for uptime. • Rapid Scalability: add seats and even link new branches with ease; in the event of a business downturn, decrease commitment with minimal sunk costs. • Additional Features: Desktop Client, Mobile Client, SMS, IM/Chat, Application Integration, Voicemail Transcription, AI • Call Center Efficiencies: if your organization operates a contact center, unlock benefits such as analytics and CRM integration to better support call agents, who will better support your customers in turn

Appendix

TCO Assessment: Inputs Note: Zeros indicate that no override value was provided, so model defaults are used instead

TCO Assessment: Category Detail

UCaaS cost

UCaaS versus On Premise PBX cost

References This UCaaS TCO was created using Pathfinder, the technology platform for IT decision-making. Adjust your assessment or create another at http://gopathfinder.net. Additional resources cited below. • AVANT UCaaS 6-12 Report • MarketsAndMarketsUCaaS Market Report • Fortune Business Insights UCaaS Market Report