A key benefit of a cloud-based UC solution versus an on-premises implementation option is lower up-front costs, as well as lower cost of ownership and operation. The cost elements of any premises-based solution involve not only up-front capital expenditure on hardware and software but also the cost of IT staff for deployment, operation, and maintenance. In addition, there are post deployment costs related to change management, driven by factors such as evolving business objectives, geographic expansion, and technology evolution. With hosted UC, the service provider bears these costs and organizations gain access to the functionality on a monthly recurring fee basis.

Another benefit is scalability. Cloud-based or as-a-service UC solutions running on a service provider’s multitenant infrastructure make it easier for organizations to scale their UC usage both horizontally (adding more users) and vertically (adding more applications and feature functionality). With cloud-based UC, organizations can roll out capabilities in gradual fashion without massive up-front commitments or the risk of stranded sunk costs.