Capital Expenses of Cloud-Based UC: A Comparison

    Today, your mobile, hyper-connected customer base demands the ability to communicate, collaborate and get business done anytime, anywhere. To support this diversifying workforce, you can rely on unified communications (UC) technology, which has become as a strong contender in recent years. If you’re ready to make the UC move, you’re on the right track. But investment parameters—including capital expenses—will undoubtedly play a critical role in your decision.

    There are three types of capital expenses you’ll need to consider: hardware, software licensing and IT labor. Below, we’ll map out the CapEx requirements for each:

    Public Cloud

    Hardware investments are low under public cloud models, as most, if not all, of upfront hardware costs are offloaded to service providers. And, best of all, no software licensing investments need to be made, as upfront software costs are borne by the service provider and are included in monthly subscription costs.

    Private Cloud

    Hardware investments are moderate under a private cloud model, as virtualization and centralization help mitigate upfront infrastructure costs. Meanwhile, software licensing costs can be moderate to high, depending on which costs are offloaded. IT labor costs are also more manageable than most, as centralization helps mitigate labor costs. IT labor expenses are also low under the public model because UC applications are already running in the hosted environment.

    Hybrid Cloud

    While a hybrid model boasts low hardware investments (because select upfront hardware costs can be offloaded to service providers), it can have high software licensing costs because they, too, are selectively offloaded. The good news is that because of this, IT labor costs are low.