What cloud phones, PBX, and VoIP mean for your business

Phones have come a long way from the shared lines of generations past. Today, callers expect clear communications on a simple calling platform. And for customers, the ease of reaching the right person can be a deciding factor when they buy. A business’ phone service needs to keep up with customer expectations.

So what should you expect from your phone company? High quality calls, superior support, and better features. Your customer calls should be simple and efficient. It’s time for you to cut the landline and switch to a cloud-based phone services, also known as Business VoIP.

In this post, we’ll break down the benefits of VoIP calling. Then, learn the differences between VoIP, cloud phone systems, and PBX. You’ll know exactly what to look for when you’re shopping for a new phone provider. You’ll learn:

What is VoIP? VoIP Phones Explained

VoIP stands for Voice Over IP. Your IP address is how your devices connect to the Internet. With VoIP, your traditional landline is replaced with communication over an internet connection.

Just like the switch from television antennas to streaming television resulted in better quality picture and features, switching to VoIP gives businesses access to several perks.

Here are 5 benefits of a VoIP phone system:

1. Lower Costs

The cost for VoIP business phones can be much cheaper than traditional phone lines. You often can use one physical phone to accept calls from an unlimited number of phone lines for one low cost. Plus, since you’ll no longer be charged by minutes of use, you’ll have access to unlimited calls. Whether you’re calling your neighbor or a client on the other side of the country, your cost remains the same.

VoIP phones are internet-connected, resulting in fewer hardware costs, too. Your hardware is always updated to the newest software versions without having to trade in your phones as often. Some phone providers also provide complete system maintenance. That means that you won’t have to call an IT person when you want to make a change to your phone system. With more reliable hardware and maintenance and changes included, you’ll have fewer costs over time.

2. More Features with Less Hardware

Cloud phone systems provide access to more features, yet it’s simpler to use. There isn’t onsite hardware to manage or disparate business tools to switch between. Your single phone system can record calls, create transcripts, and conference call. One piece of hardware can use multiple phone lines, syncing different call needs to one phone. Your phone will even let you know which line is being called so you’re always prepared to answer professionally.

3. Better Support

Internet-connected cloud phones include 24/7 system monitoring. And, issues can often be fixed with faster remote support. With connected systems, it’s easier than ever to diagnose and solve any issues that arise. Best of all, the reliability of up to 99.9% uptime means you’ll spend less time dealing with support at all.

4. More Mobility

VoIP cloud phones let you access the same features from any location. Plug your phone in anywhere in the world and still receive calls to your number with all your features. Enable call forwarding to your mobile phone or set your office line to ring to your cell if it’s unanswered so you never miss a call. Plus, if you ever need to move offices or work remotely, moving the number is quick and easy.

5. Low Cost or Free Installation

Installation for your cloud system should be free from your provider. Depending on the provider you choose, you may need to plug in and set up your phones yourself. Or, if you choose a local company, they will come onsite to install the phones for you. Local installation and support can make a big difference in overall call quality. Onsite technicians can find and fix network problems that affect your call quality.

VoIP vs. Cloud Phones vs. PBX: What’s the Difference?

man on phone in office

People researching phone systems might see a lot of terms to refer to online phone systems. VoIP, PBX, and cloud phone systems – what does it mean? Generally, these terms all refer to phones that make calls through the internet. There can be nuances between each one, but they can be used interchangeably.

Overall, the term “cloud” refers to data that is accessible from any internet access point. For instance, cloud phones allow you to access voicemail from any internet-connected device, not just the one phone with the number assigned to it through a landline.

Meanwhile, VoIP phone services usually include hardware – a physical phone – to access the full feature set. Cloud systems may be able to make calls over cell phones, tablets, computers, or any other device without needing a desk phone at all. Most VoIP providers today offer calling through internet connected devices.

Finally, businesses usually use PBX phone systems – but these, too, are now integrated into VoIP and cloud systems. PBX stands for Private Branch Exchange which means that it is a private phone network. If you’re in an office and can pick up a phone and just dial a 3-digit extension without having to dial a full number, that’s because you’re on a PBX. PBX systems enable internal calling and are combined with VoIP for external calling.

Increasingly, companies are relying on cloud features to be integrated into their PBX phone systems. If you want to monitor how phone calls are being handled or record calls for training purposes, then you’re using cloud features along with your PBX.

These features are likely all bundled into one system from your telecom provider. This provides access to all the features you need while still getting to use simple hardware.

How to Choose the Right Business Phone Solutions

Your phones are one of the most important building blocks of your business. From prospective buyers to loyal customers, the experience that people get when calling your company can affect their overall satisfaction. Plus, with more efficient phone systems, your employees can work smarter and give you access to data you need. Here’s what you need to do to choose the best provider for your business.

businessperson in office on phone

1. Identify Your Options

Choose 3-5 companies to research. Don’t go with the first one you talk to or the one who just happened to mail you a postcard without more digging. Your phone system is an investment, and you should take the time to let each company explain to you why they’re a better fit.

2. Do Your Research

There is a wealth of information on the internet from other consumers. Check out review websites like Capterra or simply Google search for each company’s name to see their Google reviews. If you see recurring issues, take note and address these concerns with their respective company. Ask other business owners you know about which providers they use and what issues they’ve run into.

3. Interview the Companies

While this can seem tedious, hop on a sales call with each company. Tell them which other services you’re researching so that they can identify the differences between the competition for you. Ask about their service, support, and installation. Push to find out the closest estimate they can to what you’ll actually be paying. Do features that you need cost more? Will they charge you for installation or service calls? Take notes so you can refer to them later.

4. Compare Providers

Once you’ve compiled all your research, review what you’ve found. Are you concerned after seeing a number of 1- and 2-star reviews online? Did you find people complaining that it’s hard to get support? Are there any standouts that don’t have any red flags? If you uncovered any features that one provider offered that you are interested in, check back with earlier ones to see if they can compete.

5. Make Your Choice

Remember that phones are the lifeblood of your business. Your employees will use them every day to help customers, take payments, and acquire new customers. Choose the system that you think will best serve your business with the ability to grow alongside you. If you’re still feeling unsure, choose a provider that offers month-to-month payments without contracts. Hopefully, you won’t need to switch again.

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