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Business Phone TCO: The More You Know

A while back we did a blog post on the total cost of ownership of an on-premise system versus a hosted phone solution, and it’s still one of our most popular blog posts to date. Let’s do a deep dive into the total cost of ownership of a business phone system.


The biggest difference between the cost of an on-premise system and a hosted phone solution is how expenditure is calculated. With an on-premise system, the capex is very high but one-time versus a hosted solution which is monthly recurring.

On-premise solutions have maintenance fees which are sometimes mandatory, but do not always provide full coverage. Once you’ve finally finished paying for your new system, your provider might not even support it anymore and you will not be able to upgrade to new features and services without purchasing a brand new system. Sometimes vendors don’t even notify their customers when a system has reached it’s end of supported life.

At Versature, we replace any out-of-date phones at no extra cost*, and have a fixed monthly cost so it’s much easier to budget.

MAC Fees

MAC (Moves, Adds, and Changes) fees can also be quite expensive if your business is expanding rapidly, as each additional phone, information change, or move to a different building has a charge associated with it. Most providers will require that a technician come on-site to install the new hardware, which has an additional cost as well.

Versature includes all MAC fees in our monthly cost, so you can add, move, and change to your heart’s content. No more costly service calls.


Upgrading your system can be quite costly, especially if you think that your system will last upwards of 10 years only to find out that you will not be able to get service or support after 3 because the newest generation of phones has come out and your model is no longer supported.

At Versature, we are able to roll out new features with our cloud-based phone system quickly and easily, and make changes based on quick phone call. No waiting, no service calls, just service.


Another costly investment with premise-based systems is the need for training. Administrators, call centers, and even general users might require training, even more so if the phone system is unique or complicated. This usually requires a representative of your provider coming on-site to teach your employees how to use the phone system.

With Versature, any user can dial 6-1-1 from their Versature phone to get 1 on 1 support from a member of our award-winning technical support team on anything from how to use their phone to complex support queries.


When phone systems were on-premise, it was not unusual to have one or more staff members dedicated to managing the phone system and all that it required. Now, this burden is usually placed on the development team. Your dev team would much rather work on their own projects than a phone system, and their time is better spent there too.

At Versature, we have an IT administrator contact from your company, but they don’t need to dedicate hours of their day to ensure the phone works, only a few minutes of their time when there’s service to be done. Our dedicated onboarding team assists your IT contact in creating and configuring call flows, features and ensuring that your new system is optimized for your business.


You should be able to rely on your phone system; it shouldn’t cut out at important moments, your customers should always be able to reach you, and your bill shouldn’t skyrocket inexplicably. One thing that many people forget when they look at ROI is the monetary loss if the system goes down. How much potential revenue would be lost if your employees couldn’t call for an hour… a day… a few days?

At Versature, we ensure that there is not one single point of failure for your phone system, and are carrier neutral to make sure that downtimes are rare and quick. If your building’s power shuts down, you can easily move to another building and bring your phones with you, or work from home with Versature softphones.


When you buy an on-premise system, you need to forecast your phone demand for the next three to five years. How many employees will you have? How many callers could you have at one time? As you can imagine, it’s practically impossible to accurately estimate thing, and the costs of upgrading your system should you expand are very high. On-premise systems are very fixed, and there is not a lot of room for scalability.

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There’s more to a business phone solution than just the cost, but looking at the savings involved with being flexible are important in the decision. See an example of the savings of a cloud-based solution, or get your own personalized quote!



*free phones available with a 3 or 5 year contract

About Keni Gibson

Keni Gibson serves as Versature's Sales Team Leader, providing strategic direction and leadership to his fellow Sales Account Managers. He has 12 years of successful sales experience in the Canadian telecommunications market with an extensive background in business continuity planning and IT infrastructure. Considered a thought leader in the IT sales community, Keni is also an avid outdoorsman with strong community ties in the Ottawa Valley.