Cloud Communications Services are Catalysts for Efficiency and Savings

We have recently been focusing on maximizing savings for our customers. By reducing costs without sacrificing service, we can help them achieve even greater ROI from the NetFortris solutions they already employ. I want to share our findings and open a dialogue about your own observations in the marketplace.

Before we begin, it’s important to note that cloud voice services have evolved into a $6b industry (IBIS World) and continue to grow at a rate of about 17% a year. More and more businesses are outsourcing their communications requirements. They are looking for hosted and “cloud” provider partners to manage the expense, administration, and maintenance of their voice and UC systems.

Where can enterprises find savings?

  1. Hardware Costs — By choosing hosted and cloud solutions, enterprises can avoid buying and maintain a costly on-premise PBX or UC system. Our research shows that even the most simple on-premise PBX systems can cost as much as $5000 for just 25 phones. Server-based VoIP phone systems can cost upwards of $6000 for just 20 phones, and the phone itself can range from $100 to $1000 each based on features and functionality. In addition to the hardware itself, installation can cost an additional $3000-$5000. When enterprises choose hosted communication services, the provider carries this cost, and leases the hardware to the enterprise for a monthly fee. This saves thousands in up-front costs.
  1. Network Costs— There is a broad range of network options, but at minimum, businesses require both telephone and internet service. On their own, enterprises must negotiate for services directly, often paying a premium for not buying in bulk. Enterprises who choose cloud-based services can take advantage of their provider’s aggregate rates and save as much as 50% per line. Because NetFortris owns our own MPLS network, we carry the bulk of traffic ourselves. For last mile, we negotiate with carriers and local loop providers to deliver cost effective solutions and utilize the right system design to dramatically reduce line costs. Our ability to be carrier neutral allows us to seamlessly integrate last mile circuits from any underlying facility provider, providing a “best of breed” solution that gives our customers the best prices.
  1. Maintenance Costs — With cloud-based communication services, the cost of maintaining phones, routers, switches, servers, and software licenses is included. Service providers like NetFortris take the burden of maintenance and licensing off their customers’ shoulders.
  1. Upgrade Costs — Cloud communication services, such as our cloud voice solutions, share a multi-tenant computing environment. These products are constantly improved with new features and functionality at no additional cost to the customer. Custom and highly specialized services can be added inexpensively and brought online without disrupting workflow or productivity.
  1. Expert Service and Five-Nines Reliability — When communication systems fail, businesses lose money, customers lose connectivity, and work comes to a halt. Cloud-based services are protected from the negative ramifications of network failure, security threats, and performance degradation. Expert system design ensures that they were built correctly from the beginning, and experienced technical support provides enterprises with optimal service and value from their communications solutions.

Finally—it’s not just about saving money on a monthly basis.  For many companies, it is also about the kind of expense that remains on the books.  Cloud-based services eliminate the need for upfront capital expenses. The service provider, not the customer, owns all of the equipment and software. Businesses can save working capital and benefit from predictable monthly services fees with all-inclusive charges.

What advantages do you see with cloud communications services? How has your business benefitted personally? Please let us know at blog@netfortris.com.

Dan Miller
About the author: Daniel Miller is the Senior Vice President of Operations at NetFortris. Daniel brings over 11 years of experience in project management, technical customer service, and operations management. Prior to NetFortris, he served as VP of Operations at Telekenex, where he was successful in leading the company’s vision of delivering superior client support.