Cloud Savings - Quantifiable

28 Quantifiable Savings



Replace dedicated site specific circuits with virtual SIP Trunks purchased one at a time as needed and aggregate resources across all sites. Utilization on existing PRIs is often 33% or less. Circuits can be 65% over-architected because landline calls continue to decrease as email, text, IM, web chat and mobile usage skyrockets. SIP Trunks are sized according to the maximum number of concurrent calls - typically one SIP trunk serves 3-5 users.
SIP Trunks Savings - on average 40%


Replace dedicated site specific analog lines with virtual SIP trunks purchased one at a time as needed and aggregate resources across all sites. Keep analog lines for security alarms, modems or other analog devices.
Analog Lines Savings – up to 100%


Replace local, intralata, intrastate, interstate and international legacy usage pricing with less expensive IP voice packets. IP calls anywhere in North America are priced the same whether the call is local, intralata, instate or interstate. The so called V&H rate tables no longer apply.
Usage Costs Per Minute Savings - expect 50%


Internal station to station and site to site traffic anywhere in the world is free. What percent of your traffic is site to site?
On-Net Traffic Savings = 100%


Migrate away from expensive third party conference bridges. Cloud conferencing with no upfront expense will cut costs in half.
Conference Savings - 50% when you pay 4 cents/minute instead of 8 cents


Port your existing 800 numbers from legacy TDM carriers to VoIP network providers that transport voice packets end to end across IP networks.
Toll Free 800 Savings – 50% when you pay 3 cents/minute instead of 6 cents


Switch to wholesale rates. Keep your existing phone numbers, your mobile devices and your underlying carrier’s infrastructure while paying up to 30% less. And the wholesaler will clean up the inventory, analyze existing plans and services, provide an intuitive web portal, consolidate billing and provide online reporting.
Wholesale Cellular Savings – Up to 30%


Migrate fax from analog machines and servers to cloud based IP networked fax. Eliminate fax machines, analog lines, legacy minutes, repairs, maintenance contracts, save time and go green by dramatically reducing paper.
IP Fax Savings – 50% to 90%


Cloud Contact Centers for a nominal fee regardless of the number of agents or queues is a game changer. Advanced features include unlimited agents, queues, realtime presence status, advanced routing anywhere anytime, listen, whisper, barge in, voice recording, comprehensive reporting, tally and reason codes and real time dashboards.
Cloud Contact Center Savings - Major


Bring Your Own (BYOB) - Replace dedicated 1.5 low bandwidth internet circuits with high capacity business grade broadband, symmetrical broadband or fiber end to end Fast Ethernet (where available). Prioritize real time VoIP calls over other data traffic such as email, internet, file transfers. T1s cannot keep up with the surging bandwidth demands of voice and video over IP.
Bandwidth Savings – 3 T1 at 4.5Mg=$1,350 vs Fast Ethernet at 10Mg=$1,100
Bandwidth Savings = 18% for 55% More Capacity


Many taxes and fees at the local, county, state and federal government currently do not apply to Voice over IP. Some of the fees charged on a single analog line: FCC Subscriber Line Charge of $6.16, Carrier Surcharge Recovery Fee of $4.60, Presubscribed Inter-exchange Carrier Charge of $3.75 and Non Listed Service of $1.58. Other fees you may pay whether they apply to you or not are the Right of Way (ROW) Surcharge, Access Recovery Charge and Triennial Review Remand Order (TRRO), Regulatory Assessment Surcharge (RAS), State Universal Service Fund (USF) Surcharge (not the same as Federal USF), Telecommunications Relay Service (TRS) Surcharge, Public utility fees, E911 surcharges, municipal and county taxes, other arbitary taxes and fees specifically targeting telecommunications services.
Taxes and Fees Savings – easily 20% of your total bill


Traditional equipment averages $800 per handset fully loaded (which includes centralized PBX/Voice Mail equipment, voice network charges, station equipment and all operating costs for first year).
Cloud PBX Savings – 70% first year depending upon readiness of network


Traditional proprietary phones cost $200-$400 per desk phone. Not every user needs a desk phone. Bring Your Own Device (BYOD) results in dramatic savings. Telecom Clouds support virtual extensions, soft phones, ATA adapters for analog phones, even the Bria software for iPhones and Blackberries.
Phone Savings – $275/desk phone vs $8/Bria and $50/USB headset = 80%


Disaster Recovery is inherent in the telecom cloud and includes carrier diversity and geographic redundancy. Once the cloud based auto attendants are set up with backup call routing and redirect in event of emergency or outage, the continuity plan is enforced automatically. The system administrator can log in and make adjustments anytime 24x7.
Disaster Recovery Savings – Varies greatly by organization


Consolidating voice and data over a single network is more efficient to manage than two separate networks. In a converged environment, VoIP packets are layered on the network just like any other application with one exception – because VoIP packets must arrive in real time they are prioritized above all other data packets.
Convergence Savings – 23%


Standardized applications, centralized administration, instant provisioning, rapid scale, common user experience, common administrative functions, common procurement process across all sites, reduction in number of suppliers to manage, common support procedures and common management tools.
Multi-site Savings – up to an additional 25%


A typical onsite MAC order averages $200 depending upon geographic area, dispatch fee and SLA response time. Estimated costs for cloud based MACs to login into your portal and make an instant change is $8.00.
MAC Order Savings = 97%


Maintenance Contracts on the PBX, Phones, Voice Mail, Conference Bridge, Fax Servers and Call Accounting system can all be cancelled. Master software upgrades occur automatically in the cloud. There is no onsite PBX or peripheral hardware to repair, replace or upgrade.
Maintenance Contracts Savings = 100%


Telecom clouds mean in house IT/telecom/network experts can be redeployed to other projects and to strategic planning.
Labor Savings = $77,000 per year per staff position.


Telecom clouds streamline operator functions across multiple sites. One receptionist can handle many sites regardless of location and transfer callers seamlessly over an all IP network.
Labor Savings = $45,000 per year per receptionist


One overlooked advantage of telecommunications cloud computing is a single integrated database for all PBX extensions, virtual call paths (SIP trunks), DIDs, 800 numbers, voice mail boxes, call accounting reports, voice recording files, conference bridges, fax and serial numbers for IP phones. A consolidated database (native to the cloud) automatically merges multiple databases into one and is easy to archive and retrieve for regulatory compliance.
Labor Savings = Estimate 10 hours per week @ $50 = $25,000 per year


Save money on automobile fuel, wear and tear.
Savings Example – By eliminating 60 commuting miles per day, you save $11,650 in annual automobile expenses, 13,050 pounds in pollutants not dispersed into the air and 260 extra personal hours.


Telecom Clouds reduce energy consumption because there is no centralized PBX or peripheral equipment to power or cool. Most IP Phones are rated Class 2 and use 4 watts/hour (color displays and Gigabit switches consume more). Assume 8,760 hours/year at 4 watts/hour/phone, 10 cents/watt/hour for energy costs and 9 cents/watt/hour for energy delivery. Look for IP phones that turn off the display when not used and power management software in LAN switches that turn off PoE ports during off hours.
Energy Savings – up to 60%


By eliminating the PBX room, real estate space is freed up for other purposes.
Real Estate Savings – 150 square feet x $35 = $5,250


In a greenfields environment the number of Ethernet connections per desktop is reduced from 3 or 4 to 1 or 2.
Cable Savings - $170 average/cable drop including installation and materials


Initial training for users and administrators and ongoing training for new hires is greatly simplified. There is less to learn because all call control, functionality and infrastructure lives in the cloud. Users learn to use their phone through a combination of webex training, online videos and podcasts, WIKIs, user manuals and quick reference sheets. Onsite training is available if needed.
Training Savings: $800 per day


Every number and service is evaluated prior to porting over to the cloud or cancelled if no longer needed. Once you are setup in the cloud the intuitive web portal, easy to read invoices, online reporting across all sites, lack of complex taxes and fees and simplified credit card payments means it’s no longer necessary to hire an outside firm to audit your monthly phone bills prior to payment.
Telecom Management Software – 4% of monthly telecom spend


Identify unused services that are no longer needed or cannot be found, services that are double billed by the carrier or the bill is higher than contracted rate, services that were discontinued but disconnects were not performed and billing continued, surcharges and other elements at the USOC level are incorrect, slamming fees for services that were changed without permission, cramming fees for charges that were added to the bill but were not ordered, cancellation of unneeded services that incur monthly fees (call waiting, call forwarding, non-published listings, optional interstate remote call forwarding, optional toll restriction listing, optional caller ID, optional inside wiring maintenance, optional key system extension channel, optional special assembly block and optional 411 direct dial through). An extensive audit is a completely free by product of migrating to the cloud. You get to start over with a clean slate.
Expense Audit Savings – 100%.