Despite the rise of texting and messaging, phone communication remains essential. However, as telecom companies shift to digital and cloud technologies like Voice over Internet Protocol (VoIP), there is less support and higher costs for plain old telephone services (POTS). A cloud-based phone system is an affordable small business solution.
But with terms like VoIP, virtual phones, and cloud phones, how do you know which is right for you? Here’s what you need to know—plus a list of top providers to kickstart your research.
What is a cloud phone?
A cloud phone, or cloud-based phone system, is a VoIP service that uses the internet for calls instead of traditional phone lines. The cloud provider hosts and maintains the necessary hardware and software remotely, eliminating the need for on-site equipment. Your small business doesn’t need to keep a public branch exchange (PBX) system or invest in physical servers to manage business calls.
A cloud phone system differs from a traditional landline in two key ways. First, it runs on an internet connection (broadband or fiber) rather than copper telephone lines (POTS). Second, cloud phone features—like call routing and voicemail—are managed through the vendor’s software and servers, so your company only needs a softphone app on a mobile or desktop device.
Cloud phone systems also differ from on-site VoIP solutions like 3CX. While both use the internet for calling, a business using non-cloud VoIP must install and maintain VoIP servers and equipment on-site.
Cloud-based phone systems benefits
Small businesses often choose phone systems for their user-friendly mobile and desktop apps, artificial intelligence (AI) features, and auto attendant tools. These capabilities allow on-site and remote teams to manage communications effectively and efficiently.
Consider these benefits of a cloud-based phone system for small businesses:
- Provides cost savings: Using a cloud-based phone system can reduce costs while improving efficiency. AI-powered phone tools like meeting recaps and call summaries save time, and small businesses don’t need to buy or maintain expensive equipment.
- Improves customer communication: VoIP and business tool integrations help employees personalize conversations without switching apps. Many cloud phone services connect to customer relationship management (CRM) systems, like HubSpot or Insightly.
- Enhances team collaboration: With a cloud-based phone system, your team can stay connected from almost anywhere, as long as they can access the internet. Unified collaboration platforms have video, messaging, and voice features in one application.
Although internet-based phones benefit small businesses, power and internet outages or slow speeds can impact service. VoIP providers may offer failover settings to address this issue, allowing companies to automatically forward calls to another phone number or switch to an alternate power or internet supply.
Your small business doesn’t need to keep a public branch exchange (PBX) system or invest in physical servers to manage business calls.
Top cloud phone system providers
Cloud-based phone system services offer subscriptions for nearly all budgets, from pay-as-you-go services through Zoom Phone to unlimited calling with Dialpad. Check out cloud-based phone system reviews and comparisons to explore different VoIP solutions and set up demos or free trials.
Ooma: cloud telephone system with analog device support
Ooma business cloud phones support overhead pagers and analog fax machines, while providing mobile apps and call management features. Business plans include one toll-free number and one company number plus one direct dial number per user.
Zoom Phone: a cloud phone system with mix-and-match plans
With Zoom Phone’s unlimited calling and pay-as-you-go plans, small businesses can control their budget. All subscriptions include central administration tools, advanced call handling features, and integrations with popular CRMs. You can also use AI to prioritize voicemails, extract tasks, or summarize calls.
Dialpad Connect: sales cloud-based business phone system
Companies and small sales teams can turn conversations into actionable insights through Dialpad Connect. With DialpadGPT, you can summarize calls, generate highlights, and view action items. It also helps business owners delegate tasks to a virtual assistant without higher fees.
Google Voice: popular add-on to Google Workspace
A Google number could work for your small business if you use paid or free Google tools. Add Google Voice plans to Google Workspace for unlimited text messaging in the United States, AI-powered voicemail transcription, and call forwarding. Alternatively, you can get a business phone number for free through your Gmail account.
RingCentral: AI-powered cloud service for collaboration
Wherever your team works, RingCentral RingEX can bring them together and save everyone time through AI-enabled tools. It features collaborative note-taking, whiteboard tools, and AI assistant features to transcribe audio and video conversations and generate meeting highlights.
CO— aims to bring you inspiration from leading respected experts. However, before making any business decision, you should consult a professional who can advise you based on your individual situation.
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