Have you ever felt overwhelmed by too many choices? Like when you’re at the cereal aisle and can’t decide between 18 different kinds, even though you just need one? It’s a common experience, and choosing a business phone system can feel just as confusing. With so many options and confusing jargon, it’s easy to get stuck and wonder, “Which business phone service is best for me?”
Below, we’ll break down the six major types of business phone services so you can understand your choices and decide with complete peace of mind.
And don’t worry. We’ve got a helpful table of contents to help you jump between sections and a TL/DR (too long/didn’t read) to sum up sections if you need to skim.
The Six Major Business Phone Systems You Need to Know About
We shall begin with the business phone system most of us are familiar with if we’ve been in business for a while – the traditional landline system.
1. Traditional Phone Systems
Landline phone systems have been the backbone of business communication for decades. They use physical phone lines to make and receive calls. These systems are quite reliable but are becoming less common as technology advances. Many businesses are moving away from landlines because they offer limited features and flexibility compared to newer options.
If your business still uses a landline, you might miss out on modern conveniences like easy integration with other digital tools and the ability to scale your system effortlessly. While landlines are dependable, they don’t offer the same range of features that newer business phone services can provide.
TL/DR: Landline systems are reliable but outdated, offering basic communication with limited flexibility. These systems are also being phased out in the U.S.
2. Virtual Phone Services
Virtual phone services provide a business phone number without requiring physical hardware. These services allow businesses to manage multiple business phone numbers easily through an online dashboard. With this very basic VoIP phone system, you can have a professional phone line without shelling out for an expensive traditional phone system. Think Google Voice, where you have a number and a voicemail but not much else.
Companies often choose these business phone services for their affordability and ease of setup. They’re an excellent option for startups or small businesses that need a simple, cost-effective way to manage calls. However, many of these virtual phone services lack advanced features and integration options you might need that other more sophisticated systems have.
If your business needs more than basic call handling—like automated call forwarding or call routing, IVR, and call analytics—we recommend choosing another type of VoIP phone system.
TL/DR: Virtual phone services are cost-effective and convenient but may lack advanced features and integration.
3. Hybrid Phone Systems
Hybrid phone systems combine elements of traditional and modern technologies. They offer the reliability of landlines and some advanced features of newer systems. While hybrids provide a good balance, they can be complex to manage due to their combination of technologies. Businesses often use hybrid systems as a transitional step when moving from traditional to modern communication solutions.
If you’re currently using a hybrid system, consider whether the benefits outweigh the complexity and cost. Transitioning to a fully modern VoIP phone system could simplify your operations and improve your ability to communicate well with teammates and customers.
TL/DR: Hybrid systems blend traditional and modern technologies, offering a mix of old and new features but requiring careful management.
4. Self-Hosted Cloud Phone System (Powered by VoIP)
Self-hosted cloud VoIP services use internet protocol to manage calls and offer various features that can benefit your business. Except these VoIP phone systems are managed on your own servers. Hosting your own VoIP service lets you stay in control and customize the system whenever you like, which is ideal for tech-savvy businesses with specialized needs.
Self-hosted business phone services can include the advanced features we mentioned previously, but managing one yourself requires significant IT resources and expertise.
If your business has the IT support to handle a self-hosted system, this option can provide a tailored communication solution. For many businesses, though, the need for ongoing IT management can be a drawback. As technology evolves, cloud-hosted systems offer an attractive alternative without the heavy maintenance demands.
TL/DR: Self-hosted VoIP systems are incredibly customizable but require extensive IT resources to set up and manage them.
5. Cloud-Hosted Phone Service (Powered by VoIP)
Cloud-hosted phone services (sometimes called cloud PBX solutions) offer all the benefits of self-hosted phone service, except a third party manages the technology. This means you can enjoy all the flexibility and features you need without monitoring the system’s infrastructure yourself.
Cloud-hosted solutions are extremely popular due to their ease of use, lower upfront costs, and simple scalability. Not to mention their built-in mobile and desktop apps, which can transform any device with an internet connection into a secure business line, offering more flexibility and mobility to employees.
TL/DR: Cloud-hosted VoIP services are easy to scale and maintain, offering modern features with minimal effort from your side.
6. Unified Communications (UC) Platform
Unified Communications (UC) platforms are pieces of software that bring together various communication tools into a single system. This includes voice calls, video conferencing, messaging, collaboration tools, and mobile apps for managing communications. Because it brings all these capabilities “under one roof,” a UC platform is a great way to streamline communication and improve productivity.
If your business uses different communication tools, such as separate systems for chat, voice, and video, a UC platform can simplify your operations a ton. By consolidating these tools, UC platforms make it easier for you to keep your team connected and collaborating well, even on mobile devices.
TL/DR: UC platforms combine multiple tools into one platform, giving you a cohesive communication solution that’s powerful yet easy to manage.
Why Cloud-Hosted and UC Solutions Are Worth Considering
The last two solutions are incredibly popular with modern businesses – and for good reason! They don’t just have all the benefits we’ve listed but also:
Let You Make Adjustments Easily
Imagine having a phone system that grows with your business. That’s precisely what cloud-hosted solutions offer. Whether adding new team members or adjusting features to better suit your changing needs, a cloud-hosted system makes it easy to adapt. And with UC platforms, you get the added bonus of integrating all your communication tools—like voice, video, and messaging—into one seamless experience. You can shift gears without missing a beat, keeping your communication effective and hassle-free.
Help Your Communication Keep Up With Your Business
As your business evolves, so should your phone system. Cloud-hosted solutions let you scale up or down effortlessly so your system can keep up without any headaches, whether you’re expanding or downsizing. UC platforms provide the same flexibility, allowing you to adjust features as needed without disrupting your daily operations. This means you’re always ready to meet new challenges or seize new opportunities without being held back by your technology.
Keep Costs Low
Cost is always a consideration, and cloud-hosted, and UC solutions can help you save money. Cloud-hosted business phone services often come with lower upfront costs and less ongoing maintenance since the service provider handles the technical details. UC platforms also help you save by combining multiple communication tools into a single system. This means you won’t need to invest in separate software and hardware, streamlining your expenses and simplifying your budget.
CloudWorx: The Cloud-Based Phone Service Most Businesses Prefer
If you’re considering upgrading your business phone systems, Rhode Island Telephone’s CloudWorx solution is worth a closer look. CloudWorx offers a robust cloud-hosted VoIP phone service that leverages the latest VoIP technology. Here’s why it stands out:
- All-in-One Solution: CloudWorx combines all the features you need into a single, integrated system. This makes it easier to handle your communications and ensures you have everything you need in one place. All you have to do is log in and enjoy!
- Exceptional Support: With CloudWorx, you’re not just getting a phone system—you’re getting the backing of Rhode Island Telephone’s expert support team. As your VoIP service provider, they’re there to help you with any issues or questions you might have.
- Quick and Easy Switch: The transition from your current phones to CloudWorx is far easier than the competitors. We’ve got a wide variety of resources to help you ace your upgrade, from initial consultation to full implementation.
And our customers love it. Check out our dozens of positive customer reviews to see for yourself!
Let’s Sum It Up
Choosing the right phone system can make a huge difference for your business communications. Whether you’re considering traditional options or exploring modern solutions like cloud-hosted and UC platforms, we hope this blog has helped you make the best decision for your business.
If you’re curious about upgrading to CloudWorx, our team is here to help – both literally and figuratively! Reach out, and we can start putting together a business phone system that fits your needs like a glove.
Or give us a call at 888-856-5970.
