How Much Money Can a SIP Trunk Service Save You?Posted on: 2019-03-25 | Categories: SIP
Businesses are upgrading their communication systems to hosted VoIP or SIP trunking at a rapid pace. In fact, many experts confidently predict the end of the PSTN network over the next decade. Which brings us to the question, why this mad dash to switch? It is especially startling because businesses are notoriously slow to switch technologies.
SIP Trunking Will Save You Money
The reason for the rapid switch away from analog systems is obvious – cost savings. If VoIP systems were more expensive than analog tools, businesses would have to be convinced to switch. But in the vast majority of cases, enterprises benefit immensely by upgrading.
But before you commit your organization to new technology, you want to know how much you can save exactly. Unfortunately, every report you read will have a different number for you. Some will say you can save 90% of the cost. Others will tell you that savings will be minimal or close to it. What’s the real story and do the numbers add up?
The reality is that the experts are not wrong. How much you save will depend on the size of your company, your requirements, the state of your current infrastructure, and even your internet speeds. Some businesses might see a significant reduction in their monthly bills. Others might have fewer savings but they will still benefit from the modern system.
Before we look at savings, let’s consider the costs of a SIP trunk.
SIP Trunk Costs
There are different types of costs associated with SIP trunking. On the one hand, you have the direct and indirect costs of buying the trunks, DID numbers, porting your old numbers, actual calling charges, long distance rates etc.
The other type of cost is what you might need to do for upgrading or replacing the legacy systems. Some companies are able to continue using their old hardware. Others will want to upgrade them as part of the current project. Obviously, your total savings will depend on some of your decisions.
The cost of a SIP trunk can vary between $10 and $60, depending on the vendor. Some providers charge extra as setup fees while others don’t. You have to consider all the costs – even the hidden ones – to compare rates accurately.
All these numbers can be intimidating and you may be tempted to forget about it. But consider the fact that investing in a traditional analog system is only going to get more expensive. Carriers aren’t upgrading their aging network anymore. They’re all investing in next-generation VoIP technologies. So that’s a huge incentive to upgrade right there, even if your projected savings aren’t exactly sky high. You can rest assured that you won’t lose money by switching to SIP trunking.
Ways to Save with SIP Trunks
There are different ways you can save by using SIP trunks instead of the standard PRI/T1 lines.
Price Tag – SIP vs Analog Trunks
Right out of the gate, SIP trunks have a smaller price tag. That means dollar for dollar, you get more capacity with SIP. Or conversely, you spend a lot less on the same capacity as you had before.
No Capital Costs
This is another huge saving. When you provision a SIP trunk. You don’t have to buy any physical hardware. None. That’s because a SIP trunk is a virtual line connecting your business to the vendor. A SIP trunk not only carries voice but also other types of multimedia. All of which means you can probably eliminate duplicate services/equipment for video conferencing, virtual meetings software etc.
If you haven’t heard of this one, you’ve been missing out. With SIP trunks, internal calls are free. That’s right, calls between your offices in whatever location, are absolutely free! Long distance rates are also a fraction of the rates charged by traditional carriers. So get ready to see a huge drop in the monthly bills from this single factor alone.
Get Ready for Next-Gen UC Tools
This benefit can’t really be quantified until you experience it. Many businesses are looking to the future with their communication systems. That means a completely unified system that brings together different channels with an intuitive interface. It will be flexible, responsive, and reliable. It’s all about integrating different systems into a cohesive whole. Using SIP trunks is one of the first steps you should take on the road to UC.
Now you see why it’s so hard to get accurate numbers. How much your business can save will depend on your unique circumstances. Some vendors and even websites have ROI calculators you can use. Get a rough estimate and you can finetune the numbers as you go along. If you need more convincing, just remember that the PSTN-based tools aren’t going to be here much longer. The sooner you switch, the more you’ll benefit!