Evaluating Voice TCO
Total cost of ownership provides businesses with a financial framework to encourage better purchasing decisions while saving time and minimizing cost-related headaches.
Buyers of voice solutions...
lean on a Lifecycle Costs Analysis to determine the true worth of the asset over time.
Understanding the costs associated with new technologies can seem straightforward. Shockingly, though, 85% of total costs are hidden. We’re taking a deep dive below the surface and uncovering these costs and what they mean to your business.
Going Below the Surface Costs
Like with any investment, knowing what pricing factors to look out for can help you determine and lower your TCO – and positively influence your ROI. On the surface, asset ownership looks just like the purchase cost. But, there’s more to it than that.
Visible Costs
These are the acquisition costs incurred at the time of purchase. You can think of them as surface-level costs– ones detailed on your invoice statements.
Your itemized voice infrastructure billing may include:
Hardware or software list price
User licenses and subscriptions
Integration, setup and configuration fees
Hidden Costs
These are the operating, personnel and disruption costs associated with the remaining factors of TCO. The term "hidden" isn't to imply that the costs are intentionally invisible. Rather, they're often overlooked by buyers.
Consider the following direct and indirect costs associated with on-prem voice infrastructure, such as:
- Repairs: Deploying security and patches to solve phone environment issues.
- Maintenance: Specialized personnel for equipment maintenance and troubleshooting.
- Upgrades: Adding new user licenses and calling features as business needs grow and develop.
- Service: Loss of productivity and performance due to connection downtime.
- Support: Ongoing support needs from internal departments or third-party providers.
- Security: 24/7/365 network management for on-premise and off-site server facilities.
- Training: Adequate training in new technologies and system upgrades.