Doing More with Less: Managing Costs in Unified Communications

Public agencies today face intense pressure to do more with less. Tight budgets, aging phone systems, and hybrid work demands all collide with the need to deliver reliable communications.

Legacy systems can quietly eat up a large portion of your budget, not just through hardware costs, but through maintenance, IT labor, energy, and support headaches. When you build the true picture of your total cost of ownership (TCO), the financial case for migrating to a unified communications as a service (UCaaS) model often becomes clear.

This article will help you:

1. Understand the hidden and long-term costs of traditional communications systems
2. Calculate and compare TCO and ROI
3. Prepare data-driven talking points for boards or councils
4. Explore procurement strategies that ease budget hurdles
5. Position UCaaS as a strategic cost-saving decision

Hidden Costs of Legacy Systems

Legacy on-premises phone systems and multiple siloed tools may seem "paid for," but they bring ongoing costs that often go unnoticed:

• Hardware maintenance and replacements every few years
• Support contracts and software upgrades
• IT labor to manage, patch, and troubleshoot systems
• Energy costs for power, cooling, and space
• Inefficiencies and downtime that reduce staff productivity

A five-year total cost of ownership for a traditional PBX system can be around $240,400, or roughly $40 per user per month, after factoring in maintenance, IT labor, trunking, and facilities costs 

Meanwhile, cloud-based UCaaS platforms are subscription-based and eliminate many of these costs, offering predictable monthly pricing instead of periodic large capital outlays.

Real Savings with UCaaS

When evaluating UCaaS from a TCO perspective, cloud solutions typically deliver 30 to 40 percent lower total ownership costs over five years than traditional systems once you include hardware, maintenance, and support 

Other analyses find:

• Up to 50 to 65 percent potential savings when replacing legacy systems with cloud communication tools, thanks to reduced staffing, maintenance, and hidden fees.
• A single-vendor, unified cloud platform can result in roughly 56 percent lower TCO compared to a multi-vendor setup.
• UCaaS also consolidates tools like voice, messaging, and conferencing, dramatically reducing redundant software and services.

These savings are real line-item reductions, not just soft benefits.

How to Build a Board-Ready TCO Comparison

When preparing a proposal for a leadership team or council, the key is to move beyond feature comparisons and focus on cost clarity. You are not just buying a tool, you are building a financial case for modernization. Here's how:

1. Identify All Existing Costs

Start by cataloging every cost associated with your current communications environment. This includes:

• Hardware purchases and refresh cycles
• Support contracts for PBX or voice platforms
• Licensing fees for contact center and collaboration tools
• Monthly or annual trunking and circuit fees
• Staff time spent on maintenance and troubleshooting
• Downtime or productivity losses related to outages
• Energy and facilities costs to host systems onsite

2. Build a Side-by-Side TCO Comparison

Use a 3- to 5-year lens to show the difference between staying on-prem versus switching to UCaaS. Lay it out in a table format:

A complete TCO comparison must go beyond upfront pricing to include all ongoing costs. 

Use actual numbers from past invoices and vendor quotes where possible. This helps you present a realistic model and avoid sticker shock.

3. Present ROI Clearly

Return on investment should be calculated using this simple formula:

ROI (%) = ((Savings - Cost) / Cost) x 100

Example: If your UCaaS migration saves $100,000 over 3 years and costs $70,000 total, the ROI is about 43 percent. You can also express this in dollar terms: "For every dollar we spend, we save $1.43."

Also, highlight potential soft ROI:

• Reduced support tickets and faster issue resolution
• Higher employee satisfaction and reduced turnover
• Faster onboarding and remote setup flexibility

Back it up with industry data:

• UCaaS typically lowers total IT support costs by 40 percent
• Organizations with strong internal comms tools are 3.5x more likely yield better results 

Talking Points for Leadership

When you’re in front of the board or council, your audience isn’t thinking about platforms or integrations. They care about:

• Budget predictability
• Risk reduction
• Long-term sustainability
• ROI and value to staff or constituents

Use clear, direct messaging that focuses on outcomes:

"We can reduce total communications costs by 30 to 40 percent over five years by moving to a cloud UCaaS platform compared to maintaining our existing systems." 

"A single, integrated communications platform avoids multiple vendor fees and reduces our support burden, with predictable operating expenses instead of sporadic capital expenses." 

"By eliminating hardware maintenance and consolidating tools, we reduce both IT labor and facility costs, allowing the team to focus on strategic projects."

Additional talking points:

• We are not locked into a single vendor. UCaaS allows future flexibility.
• Cloud systems are easier to scale as staff counts or locations change.
• Subscription pricing aligns with modern procurement and budgeting models.
• The move supports hybrid work, mobile users, and cross-department collaboration.
• Delaying upgrades increases technical debt and long-term cost.

Keep your tone confident, data-backed, and focused on outcomes that matter to leadership.

Procurement & Budget Strategies That Make Sense

Public agencies often face procurement hurdles, limited capital budgets, and strict purchasing guidelines. The good news is, there are strategies that can help you move forward without getting stuck in red tape.

Consider these options:

1. Contract Vehicles and Cooperative Purchasing Agreements
   Skip the full RFP process by purchasing through pre-negotiated contract vehicles. These include options like NASPO ValuePoint, OMNIA, CMAS (California Multiple Award Schedules), Sourcewell, or other state-approved cooperative contracts. These programs allow public entities to purchase from vetted vendors at competitive rates while staying in full compliance with procurement rules.
2. Use Available Grants and Funding Program
   Look for state and federal grants supporting digital transformation, cybersecurity, or broadband expansion. Some cloud migration projects may qualify under these initiatives, especially if they support remote work or public access.
3. Plan a Phased Rollout
   Spread the project across fiscal years or departments to better align with budget cycles. This can also help your team adjust gradually and ensure smoother adoption.
4. Reframe as Operational Expense (OpEx)
   UCaaS is typically a monthly subscription, which means it can be paid out of OpEx rather than CapEx. This aligns better with many agency budgeting models and gives you more flexibility year to year

Save Money, Improve Services, Reduce Risk

Modern UCaaS is not just about new features , it’s about financial responsibility, user satisfaction, and future readiness. When you show real TCO savings, ROI, and long-term benefits, leadership sees this as a strategic investment, not a technology upgrade.

If you need help calculating your numbers, building the pitch, or finding the right provider, Maverick Networks is here to support you.

Let’s make your case compelling and actionable.