Hosted telephony applications can pass on cost savings by achieving economies of scale through the use of shared resources. Typically the more users an organisation has for an application and the greater the volume of calls generated, the further costs can reduce per user.
It also shifts the organisation's focus away from traditional capital expenditure (CapEx) to operational expenditure (OpEx). The fact that you only pay for what you use ensures there is no unnecessary wastage and it ensures the costs going in and out of the business are more manageable.
There are also a number of hidden costs when you consider investing in traditional customer owned premise equipment; including installation and deployment of technology and maintenance to keep the equipment running, housed and powered up. In comparison a hosted solution is deployed at no extra cost and maintained offsite by your hosted telephony supplier.
Perhaps one of the most significant cost benefits which can be achieved with a hosted solution is the redeployment of your IT team. Rather than focusing on the maintenance and uptime of your telephony applications which will now be the responsibility of your hosted supplier, they can focus on core IT projects.