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Cost comparison: hosted vs on-site IP-PBX

As with any purchasing decision, costs are a vital consideration. The distinct differences
between hosted and an on-site IP-PBX mean there are significant cost differences too.
The table below compares these differences so you can make a fully informed decision.

Hosted IP-PBX On-site IP-PBX

Capital investment costs

IP-PBX system Low High

VoIP-PSTN gateway N/A From 20
Router From 40 From 40
Server N/A From 650
IP phones From 20 each From 20 each
Softphone headsets From 20 each From 20 each

Monthly costs

IP-PBX system 8 per user N/A

Technical support 15-20% of solution

& maintenance cost

Service charges Included Depends on system

Less than 200 (including More than 500

30 concurrent calls
DSL and SIP trunking) (including ISDN lines)

One-off costs

Installation and setup Less than 10 per user More than 75 per user
Software upgrades Free Dependant on system
Upscaling (adding more users) Free Depends on system

Lead time
A hosted IP-PBX typically takes 24 hours to set up. An on-site IP-PBX can take as long
as three months to implement.

Costs based on a 60 user system (Hosted IP-PBX costs based on Telappliant VoIPOffice plus)