Evolution or Transforming? Cloud Economics Applied

The economic realities of cloud are real. Today, how cloud is changing voice communications?


Businesses are seeing the value of what cellular technology and mobile phones have brought to consumers and are now wanting that same technology applied to business. From an economic perspective, the following advantages of cloud-hosted PBX solutions.


Operating Expense vs Capital Expense. Most businesses today want to defer spending as much as possible. Outlaying monies for equipment ties up much needed operating capital today with the hope that equipment provides some sort of long-term return. With cloud-hosted voice solutions, the outlay for capital is minimal (or zero), and the on-going costs are expensed monthly. Direct costs, direct value.


Predictable. How much does an on-premise system cost a business? Most of the time it is unknown. Why? Because so many cost items factor into the equation – line costs, hardware maintenance, software maintenance, equipment replacement, personnel cost to administer, etc. – that many businesses don’t really know. With cloud-hosted PBX, the cost is per-user-per-month. No guessing.


Scale up, scale down. The beauty of cloud. 30 employees today, 35 next week? No problem. 30 employees today, 28 next week, also not a problem. Need to spin-up a seasonal or temporary project number, no problem. Flexible. Powerful.


So, next time more on application of cloud economics, stay tuned …


[This series will be focusing on the question of, “Is cloud technology revolutionizing or transforming?”]