The type of phone system and the features you choose can affect the price of installing or upgrading your system dramatically.
Cloud and VoIP phone systems connect through your business’s existing internet connection. That connection is to a remote third-party phone company that houses your necessary phone hardware. These phone systems can provide lower initial equipment cost up-front, but there is no ownership of the system. However, these phone systems offer modern, collaborative features, including mobility.
With on-premise phone systems, you purchase IP phones that run through a router and network switch. On-premise phone systems reside at your physical location, often integrated into a computer equipment room or phone closet, and frequently lessening quality issues that can occur when connecting through the internet. Your up-front costs will be higher with a premise-based system, however purchasing an on-premise VoIP phone system provides lower total cost of ownership beginning around the second year for most companies.