Techonomics of Skype for Business Cloud PBX – The PSTN Story

We’ve got a plethora of Reviews for Skype For Business Cloud PBX and E5 but couldn’t find anything that helps IT to choose if Cloud PBX is the right solution for them from a Commercial Perspective. The way Microsoft has packaged PSTN inside their various O365 Packages suggests that Microsoft is thinking in a completely different model and not copy the existing models in use in typical PBX environments. This unfortunately makes it difficult to do a apples-to-apples comparison / ROI analysis…

To Illustrate :

Customers in US Typically has a combination of Local, Long distance, International Packages from service providers. These Packages in turn would be different between different technologies used to connect to PSTN. Typically certain portion of the call package would include pooled free minutes for local and international included in line rental. Further Incoming calls don’t get charged. There could be further discounts for CUG calls or otherwise calls On-Net Calls. All these get even more complicated when they get mixed with mobile contracts.

Cloud PBX Calling Packages in contrast are simple calling minutes packages that allow you to get minutes pooled with each user license purchased contributing to 3000 minutes to the pool. Now the 3000 600 minutes @$24 indirectly means the charge of $0.008 $0.04which is significantly lower than the typical average $0.1 charged for international calls. However Microsoft charges for Incoming as well and the same charges apply for PSTN numbers between same organization.

Now that I’ve succeeded in complicating the situation, I would like you to check out this cost estimator:

You can plug in the information you have and take safe estimates for what you don’t know and it gets back with an estimated current Legacy PSTN and future Cloud PBX based Spend and recommends if you should proceed or not…

Playing around I see that if Call Volumes are Low or Local Calls are High then Cloud PBX Packages are a Bad Idea…


Cloud PBX rocks when you have lots of International Volumes..

for cloud pbx

Also do keep in mind that this version only compares the ‘Calling Packages’ to Direct PSTN Costs and does not look at the PBX Costs (Both Legacy and Cloud)…Its not as easy as Cloud PBX is not a separate line Item but Instead clubbed into the E1/E3/E5 Packages and its individual economic contribution cannot be separated out….That would be a topic for an overall UCC ROI Analysis…

That will come….

Later 😉


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