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TCO: Understanding the Real Cost of your Business Communications System

When assessing the future of your business communications, making the decision to stick with an on-premises phone system versus moving your communications to the cloud can be a complex process.

For an on-premises phone system, the most obvious outlays are the ones you can see and touch—the hardware and the phones that connect to it. At an average cost of $1,000 per employee, the phone system easily stands out as the big ticket item.

However, once you begin to probe beneath the surface, you may be surprised to find that the hidden costs of an on-premises phone system are nontrivial, making your total cost of ownership (TCO) greater than you originally expected. In fact, the costs may total more than the large initial capital expense of the basic hardware.
 

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