The Real Costs of a PBX Phone System

As the technological paradigm noticeably shifts from hardware to software, there seems to be little to no debate as to whether or not companies should opt for a Cloud (or Hosted) PBX.

To settle the case once and for all, we’re going to break down the costs (monetary and otherwise) of a Cloud PBX and an On-Premise PBX. You can be the judge.

Cloud PBX vs. On-Premise PBX: Setup Fees

On-Premise PBX Setup Fees

Since On-Premise PBXs require hardware setup, it generally costs tens of thousands of dollars for initial setup. This hefty fee includes the hardware itself, the effort it takes to physically set up, PBX licenses, and extra features.

It’s most convenient for the company to decide pre-setup which features they want so that everything could be done at once. Each time the company desires a new feature after the initial setup, they must pay more for a technician to come and install the feature.

The IP-PBX system is also housed in its own location, such as in a phone closet or a computer room because there is quite a substantial amount of equipment to hide away. In essence, you pay a lot to hide a lot.

Cloud PBX Setup Fees

On the other hand, the Cloud PBX does not charge for hardware fees because all of our features are up in the Cloud. This also means that you won’t have to find a space in your office to store all the hardware junk because there won’t be any!

The only setup fees you’ll have is for the actual phones that will be used, and even these fees are nothing compared to the traditional On-Premise phone costs.

When it comes to setup fees, the Cloud PBX wins. Hands down.

Cloud PBX vs. On-Premise PBX: Maintenance Costs

On-Premise PBX Maintenance Costs

If you’re a growing company that constantly needs to hire new employees, every time there is a change to the phone system, a technician will need to come and make the appropriate changes for you. And, yes, this will most likely come out of your own pocket.

If you want to add or edit features from your IP-PBX, once again, you’ll have to deal with the additional costs of physical labor. Traditional On-Premise PBXs claim that their system allows the user to be in control, but that only means that you’ll be held responsible for all of the maintenance costs. Why would anyone want to be responsible for that?

Cloud PBX Maintenance Costs

Meanwhile, the Cloud PBX lives up to its promise to let you be the boss of your phone system without having to deal with the IT personnel.

For Phonexa, our highly experienced customer service team is always just one call away. If you want to add or edit users, we’ll be able to update your system in real-time at no extra costs to you.

The same goes for extra features and upgrades. Besides paying for the actual products you want, the maintenance costs and delivery time are nonexistent. That’s what it truly means to be in charge of your own phone system. We’re at your service!

Cloud PBX vs. On-Premise PBX: Monthly Costs

On-Premise PBX Monthly Costs

Since traditional On-Premise PBXs require hardware setup for each additional standard and additional features, such as audio conferencing, long distance calling, and other functionality updates, each one of these features must be covered on a monthly basis (in addition to their possible maintenance costs). The result could be a few thousand dollars.

Cloud PBX Monthly Costs

For Phonexa’s Cloud platform, all state-of-the-art features are included in one unbelievable pricing package of $500 per month. Our entire software is designed for easy self-management, so you’ll have full control over customizations and configurations without having to pay monthly for outsourced support.

Related article: Should You Switch? Benefits of a Cloud PBX

With Phonexa’s Cloud Call Solutions platform, you’ll get all the features offered by traditional phone systems without the extra costs and baggage.

Curious to see how well a Cloud PBX performs? Schedule a consultation!


Phonexa is the leading all-in-one platform for call tracking, lead distribution, email, marketing, and digital marketing. The Phonexa staff is responsible for authorship of Phonexa blog posts.

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