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Voice over Internet Protocol (VoIP) systems are a more cost-effective alternative to traditional phone systems. For a fixed monthly bill, you get enterprise-grade business communication tools but without the expensive call rates of old landline telephones. But despite its affordability, there are still several costs associated with implementing a VoIP phone system.

1. Initial costs

Initial costs are the expenses related to acquiring the VoIP system. Most businesses usually pay a monthly subscription fee to access VoIP software and services, but the costs will vary depending on the VoIP provider. Some large corporations may even choose to set up their own VoIP infrastructure to establish private and more secure communication channels, but this comes at a more expensive price tag. Beyond the price of the VoIP system, initial costs also include hardware like headsets, webcams, IP phones, and voice-optimized network connections.

2. Setup costs

Implementation costs refer to the money spent on setting up the new VoIP system. If you hired a consultant or managed IT services provider (MSP) to customize and deploy your VoIP system, you should account for their service rates when calculating implementation costs. You should also consider the costs of hiring network engineers who are responsible for installing new network routers, cables, and security software to accommodate your VoIP systems. What’s more, if your employees are not familiar with VoIP, you’ll need to invest additional cash in training and instructional materials for future reference.

3. Operational expenses

Operational costs are the monthly recurring expenses that are required to keep your VoIP system running. These include the costs of monthly data plans as well as any VoIP-specific local and long-distance call fees.

There’s also the cost of managing the VoIP hardware, software, and network, which is usually included in the monthly subscription fee. But if you own the VoIP infrastructure, you’ll have to shoulder all of these costs yourself.

4. System upgrade budget

VoIP technology is adaptable and constantly evolving, which is why you need to budget for potential upgrades down the line. For instance, you could integrate VoIP with business intelligence and customer relationship management (CRM) software to distill valuable insights from client interactions. Alternatively, there may be plans to increase internet bandwidth and purchase additional hardware if you anticipate steady growth in your company’s future.

Finally, you should also set aside some of your budget for consultations from your MSP. These experts will evaluate the effectiveness of your current communications technology and find ways to streamline it even further while taking into account your company’s needs and budget.

If you need help setting up and managing VoIP, call our experts today. We’ll help you find the best VoIP solution and make sure you get nothing but crystal-clear calls.

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