Calculating the Cost of Communications-Related Cloud Migration

Over the last several years, there has been a shift to voice over internet protocol (VoIP) as part of a larger cloud migration trend allowing enterprises to gain new capabilities while reducing costs. As more teams permanently move to remote work settings, the need for cloud communications is becoming clearer.

A communications-related cloud migration offers important benefits including scalability and reduced costs, but whether it’s a natural disaster, a pandemic, or a cyber security threat, the business continuity benefits offer enterprises the ability to allow teams to continue to work no matter where or when they need to do so.

While many organizations first consider hosted VoIP because of the lower up-front investment and predictable monthly invoices, they often find that what makes the technology essential is the ability to continue business processes uninterrupted, no matter the circumstances.

For companies still using a private branch exchange (PBX), a natural disaster or pandemic can result in devastating interruptions. Phone calls can be forwarded, but may be limited to forwarding to a single cell phone number, where an individual employee may be forced to play gatekeeper for an overwhelming number of calls.

As teams increasingly move to remote work settings, enterprises are pursuing cloud migration that supports flexibility, but also supports business continuity plans. Even as these goals are achieved, enterprises need to be sure that cloud communications is a good fit for the budget. Here are the considerations that should be included in a total cost of ownership analysis:

Installation: When it comes to IP PBX costs, you’ll need to add in the up-front as well as the monthly invoicing costs. This type of system can be installed on-site or as a software solution which can be downloaded to on-premises servers, in an external data center, or on a virtual server. Be sure to include the cost of duplicate instances of servers for failover as well as the costs related to backup storage for voicemail, call logs, and system data.

Upgrades: You’ll also need to include the costs of upgrades from the manufacturer, as well as your vendor’s upgrades in order to continue using the newest version of your communications software. It may be upgraded several times each year and be a requirement for a valid warranty.

Usage Patterns: Ask your current communications provider to supply you with information about your total domestic local and long-distance calls. This will help the providers you’re considering give you a more accurate estimated monthly cost of service.

You can also look into quotes that take into account the various locations that may require fewer features, such as break rooms or reception, that may allow a lower monthly cost. These seats may not require long distance or video conferencing, for instance.

Take time to ensure that the quotes include everything necessary to replicate your existing system, such as toll-free or fax numbers.

Early Termination Fees: While early termination fees may seem daunting when considering cloud migration, don’t allow them to automatically derail your consideration of hosted cloud communications solutions. You may find through cost savings related to maintenance and a reduced monthly invoice, that it more than makes up for the early termination fees. For assistance in calculating your total cost of ownership with a communications cloud migration, contact us at AMD Technology.