--- title: "Cost Analysis: Business VoIP vs. a Traditional Phone System – UniVoIP" description: Compare business VoIP vs traditional phone systems with a clear cost analysis, including hardware, maintenance, upgrades, and monthly spend. Read more today! image: https://www.univoip.com/hubfs/Imported_Blog_Media/cost-1174923_1920.jpg --- [![logo-univoip-white](https://www.univoip.com/hubfs/site-files/logo-univoip-white.svg "logo-univoip-white")](https://univoip.com/?hsLang=en-us) - Products - [Cloud Voice for Microsoft Teams](https://www.univoip.com/products/cloud-voice-for-microsoft-teams/?hsLang=en-us) Streamline your communications with our cloud-native Teams voice solution. - [UCaaS - OfficeConnect™](https://www.univoip.com/products/ucaas-office-connect?hsLang=en-us) Get the tools you need to enable your team to collaborate anywhere – on any device. - [Contact Center](https://www.univoip.com/products/contact-center/?hsLang=en-us) Enhance the customer experience with our omnichannel cloud contact center solution. - Partners - [Why Partner With UniVoIP?](https://www.univoip.com/why-partner?hsLang=en-us) Give your clients better communications solutions and support when you partner with UniVoIP. - [Why Choose UniVoIP?](https://www.univoip.com/why-univoip?hsLang=en-us) Collaborate better, innovate faster, and enhance CX across all channels with UniVoIP. - About - [Our Company](https://www.univoip.com/meet-univoip?hsLang=en-us) We power growth for our partners and customers with the most innovative technology in the industry. - [Resources](https://www.univoip.com/resources?hsLang=en-us) Stay up-to-date with the latest case studies, podcasts, and more from UniVoIP. - [Blog](https://www.univoip.com/blog) Get the latest news and blog posts curated by cloud communications experts from UniVoIP. - Get in Touch - [Request a Quote](https://www.univoip.com/request-a-quote?hsLang=en-us) Ready for seamless unified communications with high-touch aftercare? Request a customized quote today. - [Customer Support](https://www.univoip.com/customer-support?hsLang=en-us) Need help? Access Service Control, view the Help Center, or contact our customer support team here. - [Contact Us](https://www.univoip.com/contact?hsLang=en-us) Access our general contact form, phone numbers, and address here. EN ES [Login](https://univoip.cloud/) [Help Center](https://help.univoip.com/) Published: 01 Nov 2017 # Cost Analysis: Business VoIP vs. a Traditional Phone System [Business Phone Systems](https://www.univoip.com/blog/tag/business-phone-systems) ![](https://www.univoip.com/hubfs/Imported_Blog_Media/cost-1174923_1920.jpg) ### The Choice is Clear. There is Significant Cost Benefits to Selecting Business VoIP   When VoIP was first introduced into the business world, many were skeptical and feared the functionality was far greater than what their office needed. Inevitably, many believed that this meant higher costs associated with more features that they weren’t going to use nor need any time soon. This lead small to medium businesses into a denial that VoIP wasn’t the right fit for them and would cost an arm and a leg for even the simplest of an upgrade. The truth of the matter is, even if a business doesn’t need advanced functionality, it still stands to benefit from switching over strictly from a cost advantage perspective. So to make matters even better, not only does a company save money, the advanced functionality will always be there depending on unique needs and growth. The solution scales with company growth, but the cost does not. So when a business is growing exponentially, VoIP makes it easy and cost-less to scale, where as an on premise infrastructure may stunt growth or require a fortune to expand. #### Upfront, Implementation and Ongoing Fees When we look at it from an upfront expenditure perspective, the installation or upgrade for a traditional phone system can cost anywhere from $500 – $2,000 per user, making on premise PBX inherently more expensive during implementation. Not only that, with traditional phone systems, there are ongoing usage, maintenance and new feature fees that quickly add up to fluctuating monthly expenses. However, with VoIP, maintenance, customer service, feature enhancements and upgrade fees are all rolled into one monthly subscription plan – leaving businesses with controlled and predictable monthly expenses. So other than VoIP removing the headache of dealing with continuous fluctuating costs, any changes done to the system can be done on the fly and without unexpected fees. #### Mobility and Operating Expenses From a mobile perspective, we live in a world where businesses are adopting more technology that allows for complete employee mobility – ultimately shrinking office spaces and leveraging telecommuting opportunities to reduce operational expenses. This significant reduction in operational expenses is unparalleled as a traditional phone system just does not have the functionality to promote a productive mobile workforce. #### Upgrading Outdated Equipment Costs In reality, a traditional phone system consists of antiquated technology that is expensive to maintain, lacks modern features and typically becomes obsolete quickly. The traditional systems just do not experience the same kind of technological advancement nor nurturing of innovation that VoIP systems do. So what does this mean for businesses running on legacy phone systems? A lot of money being spent on continuous upgrades, changes, fixes and replacements (sometimes there are no replacements). With VoIP, technology is new, self-evolving and durable so that equipment is the last thing a business has to worry about when putting together their annual budget. [![New Call-to-action](https://www.univoip.com/hs-fs/hubfs/Imported_Blog_Media/c13fa3ca-f203-4af2-81e7-270ddeb377f6-4.png?width=1920&height=1080&name=c13fa3ca-f203-4af2-81e7-270ddeb377f6-4.png)](https://cta-redirect.hubspot.com/cta/redirect/4136637/c13fa3ca-f203-4af2-81e7-270ddeb377f6) OUR BLOG ## Lastest blog posts Tool and strategies modern teams need to help their companies grow. [![How Nonprofits Upgrade Communication With UniVoIP's Cloud Voice](https://www.univoip.com/hubfs/Untitled%20design%20(3).svg)](https://www.univoip.com/blog/adopting-cloud-voice-non-profits-journey-to-microsoft-teams?hsLang=en-us) [Technology](https://www.univoip.com/blog/tag/technology) [Cloud Voice for Microsoft Teams](https://www.univoip.com/blog/tag/cloud-voice-for-microsoft-teams) ### [How Nonprofits Upgrade Communication With UniVoIP's Cloud Voice](https://www.univoip.com/blog/adopting-cloud-voice-non-profits-journey-to-microsoft-teams?hsLang=en-us) The Challenges of Outdated Telephony Systems For many non-profit organizations, communication is a ... [![UniVoIP's Cloud Voice For Teams Powers Global Enterprise Success](https://www.univoip.com/hubfs/enterprise_blog_banner.svg)](https://www.univoip.com/blog/empowering-global-enterprises-with-univoips-cloud-voice-for-microsoft-teams?hsLang=en-us) [Enterprise Solutions](https://www.univoip.com/blog/tag/enterprise-solutions) [Cloud Voice for Microsoft Teams](https://www.univoip.com/blog/tag/cloud-voice-for-microsoft-teams) ### [UniVoIP's Cloud Voice For Teams Powers Global Enterprise Success](https://www.univoip.com/blog/empowering-global-enterprises-with-univoips-cloud-voice-for-microsoft-teams?hsLang=en-us) Microsoft Teams: Enterprise-Class Voice Organizations across various industries worldwide have ... [![UniVoIP Expands Cloud Voice For Teams With Operator Connect](https://www.univoip.com/hubfs/univoip-feat-operatorconnect.jpg)](https://www.univoip.com/blog/univoip-expands-cloud-voice-for-microsoft-teams-operator-connect?hsLang=en-us) [News](https://www.univoip.com/blog/tag/news) [Cloud Voice for Microsoft Teams](https://www.univoip.com/blog/tag/cloud-voice-for-microsoft-teams) [Operator Connect](https://www.univoip.com/blog/tag/operator-connect) ### [UniVoIP Expands Cloud Voice For Teams With Operator Connect](https://www.univoip.com/blog/univoip-expands-cloud-voice-for-microsoft-teams-operator-connect?hsLang=en-us) UniVoIP, a leading provider of cloud communication solutions, announced today the expansion of its ... 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