Virtual PBX
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Written by Micki Kaufman   
Tuesday, 08 May 2007
Article Index
Virtual PBX
Page 2
 

Standard PBX vs. Virtual PBX

 

Virtual PBX

Standard PBX

Up-Front Costs

Very Low

Very High

Support Costs

Low

Moderate

Costs Per Minute on Incoming Calls

Moderate

Low to Very Low

Share incoming phone lines

No

Yes

Route calls to any phone

Yes

No

Supports distributed employees

Yes

No

Scalability

Very High

Limited

Call capacity

Very High

Limited

Full feature set

Included

Expensive

Fault tolerant

Yes

No or Expensive

ACD queuing

Included

Expensive

Distributed administration

Yes

No

PBX cost comparison with toll-free service

 

5 User System

40 User System

Up-front Costs

 

 

Standard PBX

$ 6,250

$ 50,000

Hosted PBX

$ 150

$ 150

Difference

$ 6,100

$ 49,850

Monthly Costs

Per month

Per Year

Per month

Per Year

Hosted PBX

$ 241

$ 2,895

$ 1,830

$ 21,960

Standard PBX

$ 193

$ 2,310

$ 1,150

$ 13,800

Difference

$ 48

$ 585

$ 680

$ 8,160

Payback in Months

 

127

 

73

Payback in Years

 

10.59

 

6.11

In comparing the costs, features and benefits of the Virtual and Standard PBXs, it is important consider the number of employees, the future growth of the phone system, and needed features. This provides a general idea of the costs associated with each service.

How to Choose

Each PBX type has its own strengths and weaknesses, but there are some general guidelines that will prove valuable.

When to choose a Standard PBX:

  • All employees work in the main office
  • High initial cost is acceptable
  • Company wants the cheapest solution over long run
  • Company size will likely stay the same

When to choose a Virtual PBX:

  • Some employees telecommute or work outside the main office
  • There is no main office, company runs is “virtual”
  • High startup costs are not affordable
  • Small-to-medium size company
  • Company expects growth changes

There are many competitors offering many choices, creating a buyer’s market.  Many of the small-medium sized businesses are attracted to Virtual PBX because it simulates many features of a high-end hardware PBX, without significant capital cost. Many new businesses favor Virtual PBX service because it enables them to “look big” without being big.  Virtual PBX services generally are simple enough to manage without calling for a technical manager to effect changes and extensions.  Shop for deals and different packages offered by each provider. 

 



Last Updated ( Tuesday, 08 May 2007 )
 
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