Hidden Costs of On Premise Phone Systems

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On premise phone systems are still extremely common, across a wide range of industries and business applications, but is it the right solution for your business?

Let’s review some areas where you may find hidden costs of hosting your phone system on premise.

Managing the System

Phone systems need regular maintenance. System management can be expensive and underestimated with an engineer making an average of $60,000 per year not including benefits. Costs related to maintaining can rise quickly, especially if your system is integrated with other applications or IT services. With TechmodeGO in the cloud, you can easily self-manage the system with a simple interface.

System Performance

The more features you implement on a premises-based system, the more likely it is that you will need to upgrade your processor. This is rarely factored in at the time of purchase and can end up costing thousands, because you are in effect replacing the entire core of the system. With a hosted system from Techmode, this issue is completely negated.

Integration Costs- Builds and Updates

Need to integrate with your CRM or ticketing system? It normally costs you extra to get a system integrator to perform what can be a complextask. In addition, custom integrations often lock you in to the current version of the software. Attempts to update the software will break your integrations and require additional payments to fix. With cloud-based systems, the integration is already done and can be switched on at a moment’s notice.

Data Storage

Traditional on-premises systems rely on server storage for features like call recording — and that means they can only store so much data. When you run out of storage, you cannot save any more data. This is an issue for compliance when the business nature requires you to save that data. With TechmodeGO, your recordings are stored in the cloud, so you don’t need to worry about running out of space.

Scalability

How will the on-premise system scale with peaks and lows in demand? It can’t. You need to buy capacity for peak utilization, even if it’s only used a few weeks out of the year. Any time you aren’t using it is wasted money. With TechmodeGO, you can quickly scale up as business needs require, no need to pay for what you don’t use.

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