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How Much Does a Cloud PBX Cost?

We’ve all heard of business taking place in the cloud; software accessible online and CRM tools hosted completely over the Internet.

But what about your phone system? A popular trend for modern businesses is switching to a Cloud-based phone system or a Cloud PBX. Keeping up with the latest trends in technology is often thought to be an expensive habit but we’re here to dismiss that rumor. In this article, we’ll dive into the specifics behind a Cloud PBX, explain the costs associated with a Cloud-based phone system and tell you how you’ll get more bang-for-your-buck with this hosted solution.

Cloud PBX

A Cloud PBX, or Hosted PBX, is a facet of VoIP technology that allows a company to run a business phone system over the Internet. Since the entire telephone system is maintained and hosted by your VoIP provider, your phone system becomes completely flexible and scalable. A Cloud PBX phone service even allows you to work remotely from anywhere with reliable Internet service.

Most Cloud PBX phone systems come with all the calling features you know and love. This includes features such as Call Recording, IVR/Auto Attendant and Time of Day Routing

Below, you’ll see the general flowchart for incoming and outgoing calls using a Cloud PBX.

How Much Does a Cloud PBX Cost?

How Much Does a Cloud PBX Cost?

How Much Does a Cloud PBX Cost?

Cost is one of the major advantages to choosing a Cloud-based phone system. It tends to be significantly cheaper than a phone system running over the traditional Public Switched Telephone Network (PSTN).

For starters, your Cloud PBX is hosted by your VoIP provider. That means you won’t be responsible for the expensive startup fees, equipment or the maintenance of equipment that comes along with an on-site phone system.

The costs you’ll be responsible for include your Internet service, the subscription fees to your VoIP provider for access to their Cloud PBX and any VoIP phones that you choose to use, whether that be a softphone with a headset or an actual deskphone.

Internet Service

With a Cloud PBX Phone system, it’s essential to have reliable Internet service with the right amount of bandwidth. If you don’t already have adequate Internet, be sure to factor in this cost. The price varies depending on your Internet provider.

Cloud PBX Subscription

Most Cloud PBX providers offer their service for a monthly fee per user. For example, say you have 20 employees in your office. That means you’ll pay a fee for each of your employees to have access to the Cloud phone system. The cost depends on not only your VoIP provider but the calling features you want. You can find plans starting as low as $15 a month per user but you’ll see the cost rise as their capability increases.


Not all phones are created equal. If your phones aren’t equipped for VoIP use, you’ll need to factor in that cost. A VoIP deskphone starts around $60 while a softphone, which is a phone application used directly on your computer, starts around $15. With a softphone, however, you’ll also need to purchase a headset to use with it.

Compared to the $5,000 it may cost to have your own on-site phone system, a Cloud PBX is an extremely cost-effective alternative. Talk to your VoIP provider about making the switch today.

David Wise

David Wise

Chief Executive Officer, Founder at AVOXI
David has more than 18 years of management experience in the telecommunications industry. A graduate of the Citadel, David worked as a Senior Account Executive with Intermedia Communications and later co-founded Rapid Link, a leading provider of International callback and VoIP. David then founded AVOXI in 2001with a focus on providing niche international call center markets with customized voice and data services. read more
David Wise
David Wise

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