Types of Business Phone Systems & Their Pros and Cons – What to Know

If you own and run a business, investing in a business phone system is a necessity, whether it’s for internal or external communication. As far as a solid business phone system is concerned, there are a few factors to consider. These systems include the full phone system (physical desk phones or virtual phone service), the kind of service required (VoIP system or landline phone service), and the location of the phone system (on-premise or cloud-based). All these factors are crucial to a successful installation and use of a business phone system. 

Before you decide on what phone system to invest in, here are four types of phone systems you may want to consider for your business.

1. Virtual phone system

A virtual phone system is best for small businesses with workers that are off-site. This system allows those to connect with remote workers via their mobile or home phones. With an extensive call-forwarding solution, an incoming call is transferred to the employee’s cell or home phone. This system has several features that are worthy of mention, such as automated receptionists, voicemail, call forwarding, call screening, toll-free numbers, and online faxing.

  • Pros: This system allows remote workers to have access to various phone system features that mobile and home phones don’t offer.
  • Cons: This system isn’t a full-fledged phone where calls are processed on your mobile or home phone network. Because of this, your calls will be charged.

2. Traditional landline system

The landline system is ideal for big corporations with a significant budget and IT staff to maintain them. The traditional phone system is typically supported by a local or regional phone company. Known as public switched telephone networks (PSTNs), it has an analog system that runs via the telephone company’s traditional copper wiring. A private branch exchange PBX hardware is used to create multiple extensions and provide system features, such as call transferring and call directories.

  • Pros: This system is a highly reliable, time-tested solution that many companies have been using.
  • Cons: This system will soon be obsolete, as many providers are now moving away from landlines.

3. VoIP phone system

The VoIP phone system is practical for small companies needing a sophisticated phone system at a reasonable price. It’s also best for businesses with remote employees needing access to the phone system. This system utilizes an Internet connection, instead of copper wires that landlines typically run on. The VoIP system has the following features: automated attendants, call queues, and computer integration. 

  • Pros: This system is easy to set up and configure and is significantly cheaper when compared to landlines.
  • Cons: This system heavily relies on your Internet connection. Without a stable and running connection, it won’t function.

4. On-premise VoIP system

The on-premise VoIP system is better suited for businesses with regulatory requirements that may be difficult to meet in the cloud-based systems. It works well for companies that want full control over their systems and access to their equipment. With an on-premises system, all equipment is housed within your business, and your IT staff is responsible for its maintenance, repairs, and upgrades.

  • Pros: This system is a highly functional one that gives you full control over your system.
  • Cons: This system will be a costly investment and requires your IT staff to maintain the entire system at all times.

Final words

In any given business, communication is the key to efficient business processes. Setting a robust business phone system is paramount in helping employees communicate with each other within the organization and deal with customers and other external clients. Whether it’s a virtual phone system, landline system, VoIP, or on-premise VoIP, decide which one your business needs and which particular phone system works for you.

If you’re looking for more information about business phone systems, get in touch with us to see how we can help.