Private PBX or Hosted?

The answer may surprise you. Let’s have a look.

Company profile:

Medical Device Startup

  1. (29) User Profiles Total
  2. (20) Cisco 7960G Rental Sets
  3. (07) Softphone Users
  4. (01) Analog Fax
  5. (02) Polycom Courtesy Profiles – Conference Rooms
  6. (04) Departmental Mailboxes

Hosted PBX solutions were designed to allow smaller companies to enjoy the features and benefits of a sophisticated PBX platform – without the initial capital outlay. It is best suited to the <25 user office demographic for this reason. It allows direct dial numbers for employees and departments, auto attendant/IVR, voicemail to email, user web portal for checking messages and forwarding calls, and many other high end features.

Nationally branded Cloud PBX companies will tell you that their monthly cost per seat is appropriate for up to hundreds of users! But a quick look at the math tells a different tale.

Depending on the feature set desired for each user, subscribers are charged between $25-40 per seat before taxes and surcharges. Some providers charge al la carte for premium features while others provide an all-inclusive feature set. Both will charge you to rent the desktop sets from them – or you can buy them to own. But if you’re trying to avoid any capital outlay, let’s assume you’ll rent the sets. That’s another $5/month each. Now we’re at $30-45 per seat.

Now comes the dirty little secret. Hosted PBX services are aggressively taxed and surcharged at the local, state and federal level. These charges will vary widely by your own company’s service address – but beware, their sales staff will rarely mention this pre-sale. The sticker shock won’t hit you until your first invoice – and at that point you’re under contract.

Here is an actual invoice from a San Francisco ShoreTel Sky customer that came to us for relief (their ShoreTel account is now closed);

partner-image ShoreTel 3935_2014_11_219786 p2.pdf partner-image ShoreTel 3935_2014_11_219786 p3.pdf

Invoice $2,577. Includes a staggering $417 in taxes and surcharges! Round it down to $2500/month. That’s $30,000 per year. $30K!

Our premium Digium Switchvox premise PBX solution for this client? $19K including sales tax. Installed. Professionally programmed to the last detail. They own all of their equipment and all of the desktop sets. Seats licensed for 3 years in advance. Three year warranty and 3 years of software upgrades included. Professional voice talent for all system greetings and mailboxes.

24/36/48 month leasing available, super easy to qualify. Surprised?

Don’t be. Contact us today