Hosted v OnPrem VoIP (here we go again…)

One of our clients has been quoted for a cloud based, (Hosted VoIP), telephony solution.

There are a few technical omissions that I’d take issue with but fundamentally there is nothing wrong with it except for the cost and contract period.

Cost – the quote is for 20 handsets with a contract length of 5 years with a total spend of £377.76pm x 60 = £22665.60.

Typically, an OnPrem PBX solution would be 50%-60% of this sum.

Contract – this contract is between the client and a reseller of VoIP services (iTelCo).  The questions I would ask are –

What happens if the reseller ceases trading?
What happens at the end of the 5yr contract?
Who owns the equipment at the end of the contract? 
What happens if the solution doesn’t work?
Can new handsets be added in line with the contract end date?

and so on and so on.

Whereas – 

An OnPrem solution usually has a contract period of 1yr, renewable on an annual basis.
The equipment is owned by the client.
 If the solution doesn’t work then it’s simple to implement an alternative.
Adding new handsets is a non-issue.
The client pays the provider direct, no middleman.

There are pros and cons of each solution so take care before you commit to a 5yr contract that may be expensive to get out of, and make sure you’ve read the T&Cs of both solutions.

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