Hosted VoIP Price Comparison

“We have 300 employees but we’re hardly ever on the phone, so hosted VoIP is too expensive for our company. We can’t justify paying $25 per month, per person.” Sincerely, Many Network Administrators.

This Network Admin is correct… about a couple things. Yes, most hosted VoIP providers charge $20 – $30/month/person for hosted VoIP… and yes, I agree that price does not make sense for a company with 300 employees who hardly ever use an outside line.

But this Network Admin is missing one piece of information. Like so many customers I see, she/he quoted providers who have the incorrect pricing structure for their company’s needs.

This is very common. It’s actually one of my secrets to earning the business of many companies… well, not anymore, I guess. [sigh]

When it comes to hosted VoIP pricing, there are vast differences in how providers structure their pricing, which will often result in over a 50% reduction in the cost your company will pay. That’s a huge number and as an IT buyer, you need to be armed with this information.

As the owner of an enterprise VoIP brokerage for more than 15 years (who sells over 100 hosted VoIP solutions, including all the big names), I’ve found there are 3 main differences in hosted VoIP pricing structures, which cause the largest differences in cost:

1. Mix ‘n Match;
2. Call Paths
3. Features.

Let’s look at each of these, individually:

Mix-n-Match vs. All-or-Nothing

Hosted VoIP providers often have multiple tiers of user-types, such as “Basic, Pro, Premium, Call Center,” etc. Each tier comes with a different bundle of features, from bare bones (for a conference room phone), to the whole enchilada, with Salesforce integration, call recording, barge, etc.

Many companies, however, have some employees that need the “Premium” tier, while others only need “Pro.” So, the natural question becomes: “Can we put some of our employees on the ‘Premium’ tier and others on the ‘Pro’ tier?”

Sounds common-sense, right? Wrong. [Harsh Buzzer Sound]

Some hosted VoIP providers are stubborn buggers and only offer “all-or-nothing” when it comes to their feature tiers. Meaning, if your company has 5 employees who need Salesforce integration and call recording, every employee in your company will be charged for the tier that includes Salesforce integration and call recording. Even those who don’t need it!

So, if your company has a lot of users, who also vary in their feature needs; A hosted VoIP provider who allows you to mix-n-match feature tiers will likely be more cost effective.

Call Paths

How a provider charges for call paths is probably the biggest difference maker in hosted VoIP pricing for large companies.

Approximately 80% of the hosted VoIP providers in our portfolio include a simultaneous call path with every user… and they charge approx. $20 – $30/month/user. This means that if your company has 300 employees, 300 people can be on the phone simultaneously.
Yet, the typical large-ish company (over 50 employees), only needs approximately 1 call path for every 4 users (because large companies often have many administrative employees who rarely use an outside line).

So, this means 80% of Hosted VoIP providers are going to be providing way too many call paths for large companies… and charging them for it. [scowl]

About 20% of hosted VoIP providers, however, cater to larger companies and therefore, can adjust their pricing to accommodate for large numbers of users and small numbers of call paths. These providers will only charge your company $5-$10/month/user (not including call paths), and then charge $20 – $30/month for each simultaneous call path your company requires.

If you think that’s cool, wait ‘till you hear this! There are a small handful of companies who will take it a step further… they only charge for call paths and allow you to have unlimited users! [gasp]

My advice: If your company has over 30 users, make sure you are at least browsing a couple hosted VoIP providers who can separate call paths from user licenses.

Features

When it comes to features, some hosted VoIP service providers are all-inclusive, while others will charge you for every feature.

For instance, some hosted VoIP service providers include a ton of features in their base price, including a slew of basic call center features, Outlook integration, mobile app, desktop soft phone app, and more.

As a result, (especially if your company has some minor call center needs), I’d highly recommend finding a hosted VoIP provider who includes a ton of features in their base package. It will probably save your company hundreds (if not thousands), of dollars in monthly cost.

I know what you’re thinking… “That sounds dandy but how do I find all these unique providers?” Not to worry. If you need help searching providers by pricing structure (or any other feature/functionality), feel free to use my company’s free, Hosted VoIP Provider-Finder.

If you found this blog helpful, you can let me know by clicking the button below and requesting a quote for hosted VoIP, from our company. We will give you some recommendations and send you pricing on the 3 top providers.

MY TOP 3

About the Author
Mike Smith is the Founder and President of AeroCom and has been helping companies with telecom and cloud services since 1999. He has been the recipient of numerous business telecommunications industry awards and in 2011, he was honored as one of the top 40 business people in Orange County, CA., under 40 years old. Follow Mike on LinkedIn, Twitter or SpiceWorks.