Beware of geeks bearing gifts

This week one of our clients was approached by a Telecoms company selling hosted telephony solutions.
Technically the solution was the same as most other hosted offerings.  The difference was in the way they wrapped the quotation up to make it appear to be cheaper than their existing system.
How did they do this?  Simply by giving a 40% discount for the first 2yrs, a saving of £65pm according to their figures, which would have been a significant saving on the normal contract period of 3yrs.
But, hidden at the bottom of the page in the small print was the actual contract period of 2+83 monthly, e.g. 7yrs, and would have cost my client over £2000 per year more than they are currently paying, and from a company with less than 2yrs of trading history,
Like most subscription based services hosted telephony will cost you more than an OnPrem PBX; from a purely cost consideration it’s a matter of scale.  As a rule of thumb for up to 5 handsets hosted generally works out cheaper over 3yrs, above this OnPrem is the better option.
Cost is not the only factor to consider when deciding between Hosted and OnPrem.  We’ve supported OnPrem PBXs with only 2 handsets, and another hosted with 10 handsets.
So, beware of geeks bearing gifts, seek advice and make an informed decision and always obtain alternative quotations.

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