VoIP has simplified communication for businesses across the world. Today, the question isn’t whether you should adopt VoIP solutions but which VoIP option best matches your needs. Understanding the cost of a VoIP phone system and whether it’s better to lease or buy a business phone system is vital to your company’s success, possibly saving you thousands of dollars in the long run.
What are the pros and cons of a VoIP phone rental and a straightforward purchase? Keep reading to learn which option is more cost-effective and how you can provide your employees with high-quality VoIP equipment.
What’s the Difference Between a VoIP Phone Rental and a Purchase?
VoIP is a flexible and software-based alternative to a traditional public branch exchange (PBX) phone system. In a PBX system, physical phones are installed at your property and connected through the public phone network. VoIP solutions make calls through the internet and allow your teams to use collaborative tools like video conferencing and text messaging from the cloud, which means you don’t need any new phone lines.
VoIP is a flexible and remote-friendly technology. Owning a VoIP phone system and leasing one from a unified communications provider are different experiences. With your own phone system, you’re responsible for installation and upkeep, which may not be ideal for a small business owner when you have many other responsibilities. Leasing a phone system allows you to take a hands-off approach while your service provider monitors your equipment and stays up to date with developments.
If you want the best deal on VoIP phones, you need to fully explore your options and understand the advantages and disadvantages of a rental vs. a full-blown purchase.
Ask questions like these:
- Do you want customer support options like auto attendants or other answering services?
- Do you want a scalable solution?
- Is your current phone system reliable?
- Can you afford the system costs involved with owning a VoIP solution?
The Advantages of Renting VoIP Phones
Your service provider supports you with up-to-date equipment. With the latest tech, your organization’s communication remains fluid and effective. Small businesses can enjoy technology that would be unaffordable under other circumstances. Keeping up with competitors becomes simple.
Reduced Upfront Costs
You don’t need to put money up for installation. With a leased VoIP phone system, you only need to worry about service fees, which usually don’t occur until after your building is up and running with the new solution.
Predictable Monthly Expenses
Leases have a predetermined monthly cost. Creating a budget and sticking with it is easier. Knowing how much you can expect to pay makes long-term financial planning a breeze when you need to scale your solution to match your growth.
The Disadvantages of Renting a VoIP Phone System
More Expensive Over Time
Regular payments for leased equipment can outpace the cost of buying the assets outright. If you ever stop using your VoIP phone system or move away from the technology, you may have to pay for the entire lease period.
Use terms and schedules can limit your ability to upgrade your equipment or scale your coverage. When you want to modify or adjust your phone system, you’ll need to meet with your provider first. If they’re unresponsive or inflexible, your short- and long-term business goals could be at risk.
The Advantages of Buying a Phone System
While leasing plans don’t require upfront payment, you may pay more in the long term. Buying a phone system at a set cost allows you to control how much you spend on the initial installation and increase cost savings over time.
A provider may only have access to a limited variety of VoIP solutions. When you strike out on your own, you can choose any system you want. You decide your setup and set parameters for expansion when you upgrade your equipment.
With an internal IT team and full ownership of your equipment, your operations remain internal. You have the freedom to arrange repairs and upgrades when you need them, and your in-house tech experts are close at hand. Relying on a third party for customer support can splinter your organization and make you feel like you aren’t in complete control.
The Disadvantages of Buying a VoIP Phone System
Expensive Upfront Costs
While you may expect to pay less in the long term, the initial cost for VoIP phones is high. You may need to use credit or spend a lot out of pocket to set up your new equipment, which can negatively impact your budget and set back plans you had for growth.
Upgrades and Maintenance Costs
The technology world is constantly evolving. Your VoIP phone system will become outdated, and if you want to maintain your competitive edge, you’ll need to pay for upgrades. You’ll need an experienced internal IT team who can keep up with advancements and guide your investments.
Maintain Your Cloud-Based Phone System With a Responsive Telecommunications Outfit
Maintaining a VoIP phone system doesn’t have to be a hassle. First Class Connection supports businesses with cutting-edge communications technology designed to suit your specific needs. We improve productivity in your organization by providing you with VoIP solutions that make collaboration across departments simple and effective. We manage your phone system from implementation to maintenance and upgrades.
When you partner with our team, you receive our full attention. We’re responsive to your needs and offer our services at a fraction of the cost of maintaining a traditional PBX system on your own. If you want extensive mobility, cost savings, and scalability, FCCC is ready to help.