{"id":44553,"date":"2020-10-19T22:52:14","date_gmt":"2020-10-19T22:52:14","guid":{"rendered":"\/us\/en\/blog\/?p=44553"},"modified":"2023-02-15T13:48:16","modified_gmt":"2023-02-15T21:48:16","slug":"evaluating-the-cost-savings-of-switching-from-on-premises-to-cloud-pbx","status":"publish","type":"post","link":"\/us\/en\/blog\/evaluating-the-cost-savings-of-switching-from-on-premises-to-cloud-pbx\/","title":{"rendered":"Evaluating the cost savings of switching from on-premises to cloud PBX"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">The pandemic has pressed businesses from all sides, unleashing a host of new immediate and long-term challenges\u2014some existential. From maintaining business operations remotely to developing long-term continuity strategies, enterprises are laser-focused on recovering as quickly as possible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For CFOs, however, the rapid and unprecedented changes of 2020 have created what may seem like an impossible challenge: meeting the needs of a workforce that looks nothing like it before the pandemic. It\u2019s kind of like building an airplane\u2014while flying it at the same time.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With 80% of CFOs reporting a <\/span><a href=\"https:\/\/www.irmagazine.com\/covid-19\/cfos-focus-costs-mitigate-financial-hit-covid-19-says-survey\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">decrease in revenues<\/span><\/a><span style=\"font-weight: 400;\"> and\/or profits amid the pandemic, it should come as no surprise that cost savings are a major priority for most finance executives.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And with savings averaging $197,914 across businesses of all sizes, and revenue gains as high as $838,000, <a href=\"https:\/\/www.ringcentral.com\/office\/how-it-works.html\" target=\"_blank\" rel=\"noopener noreferrer\">unified communications<\/a> can play a major part in an organization\u2019s post-COVID-19 future.<\/span><\/p>\n<section class=\"show-demo\">\n<div class=\"title\">\n\t\t\tCloud PBX Cost Savings\t\t<\/div>\n<div class=\"flex-container button-container {{ $description ?: 'spacing' }}\">\n<div class=\"flex-container description\">\n<div>\n\t\t\t\t\tAdopting a single-vendor approach results in a 56% lower TCO versus multi-vendor strategy. \t\t\t\t<\/div>\n<\/p><\/div>\n<div class=\"button-wrapper\">\n                                            <button onclick=\"window.open('https:\/\/netstorage.ringcentral.com\/research\/nemertes_the_cfo_imperative.pdf', '_blank'); return false;\" class=\"show-demo-button\" data-dl-name=\"show-demo\" data-dl-element=\"button\" data-dl-additional-info=\"show demo button\" data-no-auto-dl=\"true\">Learn More<\/button>\n                                    <\/div>\n<\/p><\/div>\n<\/section>\n<h3 class=\"heading h3\"><b>Supporting the new normal<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">One of the biggest changes we\u2019ve seen this year was the rapid adoption of work from home policies\u2014and the figures are nothing short of staggering. According to data from <\/span><a href=\"https:\/\/netstorage.ringcentral.com\/research\/nemertes_the_cfo_imperative.pdf\"><span style=\"font-weight: 400;\">Nemertes Research<\/span><\/a><span style=\"font-weight: 400;\">, the percentage of employees working from home more than doubled during the pandemic.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Today, 91% of companies allow at least part of their employees to work from home, up from 63% before the lockdowns. That trend is here to stay.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While nearly a quarter of organizations are already ditching their now-empty office space, only 8.2% of businesses say they will fully discontinue remote work when the pandemic ends.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For CFOs, this shift brings a new imperative: optimizing the work-from-home experience to maximize cost efficiencies while also equipping workers with the best collaboration and communications tools out there.\u00a0<\/span><\/p>\n<h3 class=\"heading h3\"><b>Work from home and the cloud<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">On top of remote work, there\u2019s another trend that\u2019s accelerated as the result of the pandemic: the rise of the cloud.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Cloud communications\u2014consisting of team messaging, video conferencing, and phone\u2014combined with robust usage analytics, have become particularly widespread. More than 35% of organizations have embraced Unified Communications as a Service (UCaaS), up from just 19.1% in 2019.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Usage will likely accelerate further, given that nearly two-thirds of organizations say they are more likely to use cloud services to support the needs of remote workers. Overall, 70% of companies plan to increase IT budget in the coming year to support WFH, with video conferencing and other communications solutions among the top areas of investment.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">And while cloud collaboration can help streamline collaboration across the entire organization, the potential for cost savings is the top driver of cloud adoption.<\/span><\/p>\n<h3 class=\"heading h3\"><b>Calculating the ROI of cloud communications<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Focusing on cost savings alone doesn\u2019t truly capture the full ROI of UCaaS. While there are significant immediate and long-term savings to be had from reducing IT infrastructure, reducing staffing costs, and improving provisioning, there are other bottom-line benefits to switching to the cloud:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><b>Revenue gains<\/b><span style=\"font-weight: 400;\"> leveraging better communication tools to improve business responsiveness and customer service, and helping to close more new business..<\/span><\/li>\n<li style=\"font-weight: 400;\"><b>Productivity improvements<\/b><span style=\"font-weight: 400;\">: resolving pain points common among distributed teams and optimizing workflows.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Companies of all sizes have seen success across all three of these categories:<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-44554 size-large\" src=\"\/us\/en\/blog\/wp-content\/uploads\/2020\/10\/cost-savings-2-1024x344.png\" alt=\"\" width=\"1024\" height=\"344\" \/><\/p>\n<p><span style=\"font-weight: 400;\">Additionally, working with a single vendor can double down on these benefits by eliminating cost redundancies that can occur when multiple platforms and solutions are in use.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example, between reduced licensing and operational costs and a simplified end-user experience, using a single platform for integrated team messaging, video conferencing, and phone can yield 56% TCO vs. a multi-vendor approach.<\/span><\/p>\n<h3 class=\"heading h3\"><b>Paving the way to better WFH<\/b><\/h3>\n<p><span style=\"font-weight: 400;\">Organizations are looking at enhancing remote work for the long-term. For finance executives, tasked with not only budgeting for the immediate needs of remote organizations but, more importantly, the critical strategic work of charting a recovery and ensuring resiliency to thrive amid future challenges, understanding the cost benefits of the cloud is paramount.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">A remote workforce has unique needs, requiring accessible-anywhere communications channels as well as tools that can bridge the gaps between distant employees and customers. To make WFH successful from a cost point of view, CFOs must focus investment on solutions that both drive savings and provide secondary returns such as increased customer satisfaction to drive greater revenues, and fueled productivity. With lower operational costs and a seamless end-user experience, an integrated platform combining calling, video-enabled meetings, and team messaging checks all the boxes.<\/span><\/p>\n<section class=\"show-demo\">\n<div class=\"title\">\n\t\t\tCloud PBX Cost Savings\t\t<\/div>\n<div class=\"flex-container button-container {{ $description ?: 'spacing' }}\">\n<div class=\"flex-container description\">\n<div>\n\t\t\t\t\tAdopting a single-vendor approach results in a 56% lower TCO versus multi-vendor strategy. \t\t\t\t<\/div>\n<\/p><\/div>\n<div class=\"button-wrapper\">\n                                            <button onclick=\"window.open('https:\/\/netstorage.ringcentral.com\/research\/nemertes_the_cfo_imperative.pdf', '_blank'); return false;\" class=\"show-demo-button\" data-dl-name=\"show-demo\" data-dl-element=\"button\" data-dl-additional-info=\"show demo button\" data-no-auto-dl=\"true\">Learn More<\/button>\n                                    <\/div>\n<\/p><\/div>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>The pandemic has pressed businesses from all sides, unleashing a host of new immediate and long-term challenges\u2014some existential. From maintaining business operations remotely to developing long-term continuity strategies, enterprises are laser-focused on recovering as quickly as possible. For CFOs, however, the rapid and unprecedented changes of 2020 have created what may seem like an impossible &#8230;<\/p>\n","protected":false},"author":29,"featured_media":44555,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[18390],"tags":[23945,3847,23944,23943],"class_list":["post-44553","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-communication-and-collaboration","tag-cloud-communications-cost-savings","tag-ringcentral-cost-savings","tag-ucaas-cost-savings","tag-unified-communications-cost-savings"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v19.3 (Yoast SEO v27.2) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Evaluating the cost savings of switching from on-premises to cloud PBX | RingCentral Blog<\/title>\n<meta name=\"description\" content=\"The pandemic has pressed businesses from all sides, unleashing a host of new immediate and long-term challenges\u2014some existential. 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