With great advancements in cloud technology, cloud-based business solutions are becoming even more agile and cost-effective. This has pushed business communications to adopt innovative cloud technology as well with cloud phone systems.
Nowadays, numerous companies are offering affordable cloud phone system solutions for small teams. Therefore, for small business owners, choosing the best cloud phone system for their business needs can be a challenge. Here, you will learn what a cloud-based phone system is, how it works, the top features you need to look for, and more.
What is a cloud-based business phone system?
How do cloud-based phone systems operate?
Devices that can be used for cloud-based phone solutions
What are the top features of the best cloud phone systems?
What makes cloud-based PBX a good business communications solution for small businesses?
What are the pros and cons of cloud-based phone systems?
The best phone system providers for small businesses
8x8 Cloud Phone System solutions, perfect for small businesses
What is a cloud-based business phone system?
A cloud-based business phone system is a phone service that lets you manage calls through an internet connection. They come with private branch exchange functionalities. So, “hosted PBX systems” are also interchangeably used to call cloud-based phone systems.
Unlike on-premise traditional phone systems, cloud-based or hosted PBX systems are secured and hosted in the cloud at one or more off-site data center locations which help businesses save costs and space. Since all data is stored and accessible via the cloud, you can also efficiently protect and securely update your data.
Cloud-based phone systems are often offered to businesses on a subscription basis, depending on their needs. They can be implemented with various devices, such as smartphone apps (Facetime, Skype, Google Voice), computer calling software, desk phones with adapters, or VoIP-enabled phones.
How do cloud-based phone systems operate?
Cloud phone systems work by sending audio data packets and other types of data between callers over the internet. Unlike an on-premises conventional PBX system that calls for businesses to buy and maintain servers and equipment, cloud phone communications systems can work with a simple mobile device or computer with a microphone and speaker.
Devices that can be used for cloud-based phone solutions
You can use a variety of devices for cloud calling:
Traditional desk phone with a VoIP adapter
If you prefer the functionality and feel of a traditional desk phone, you can opt for a desk phone with a VoIP adapter to make calls on the internet. The adapter can be plugged into a phone socket in the wall or directly into a router.
A computer or softphone
Many cloud phone system providers also offer softphones instead of traditional desk phones. A softphone is a software (mobile app or desktop app) installed on internet-connected devices such as Android or IOS mobile phones, tablets, or even computers that enables you to make voice calls over the internet.
A smartphone
You can also use your mobile device to make internet calls. You can download mobile apps like Skype or Google Voice, enabling you to stay connected no matter where you are.
A dedicated VoIP phone
People who prefer analog phones can choose VoIP phones that connect directly to a computer network instead of a phone line. These phones have features and functionalities that typical telephones do not have.
What are the top features of the best cloud phone systems?
The main reason why many small businesses or companies with fewer resources are attracted to cloud phone systems is the multitude of features offered by the technology. Traditional phone systems can only provide a limited number of features, while cloud phone systems can update and add functionalities easily as per the business's needs. Some advanced features of cloud-based phone solutions are free to use, while a few may incur additional charges to your monthly bill. Below are some of the most popular functionalities offered by top providers:
- Voicemail transcription
Voicemail-to-email is a feature that allows you to transcribe an email and send it as an audio file to an email address. The voicemail transcription feature allows the receiver to access their voicemail without a voice mailbox.
- Auto attendant
An auto attendant or virtual receptionist is an automated voice menu with automated directories that are often used in business calls. It can reduce the workload on live agents and direct calls appropriately on its own.
- IVR
Interactive Voice Response (IVR) is an automated system that allows inbound calls to interact with a pre-recorded message. Either by voice commands or touch-tone keys, users can be routed to the relevant departments or recipients with ease.
- International calls
Since cloud phones are internet-based, you can save on long-distance call charges while making or receiving calls internationally. You can typically make international calls for free with most subscription packages for cloud calling.
- Video conferencing
With remote work becoming more popular, businesses need reliable and easy-to-access video conferencing options. Video calling and screen sharing are common features that most providers include in their packages already.
- Instant messaging
Text messaging is a real-time text-based communication that allows you to send and receive messages from various devices such as smartphones and computers. This responsive layer of communication provides information to be preserved in writing that can be referenced later in case of discrepancies or complaints. It can also be a great team messaging feature that ensures all team members stay in the loop and work collaboratively.
- Powerful integrations
Cloud phone integrations allow for a large number of resources to be combined in a suite or single cloud package. Most providers offer CRM integrations with Salesforce, Zendesk, HubSpot, Microsoft applications, and more which can make operations more streamlined.
- Additional unified communications functionalities
A unified communications solution allows companies to consolidate their video conferencing, voicemail, instant messaging, SMS, chat, and faxing features with cloud telephony. They can also integrate web applications, social media apps, and email. You can also avail call forwarding across different devices and easily continue a conversation from your phone to your computer.
What makes cloud-based PBX a good business communications solution for small businesses?
A cloud-based phone system is a fantastic communications solution for small businesses since it allows for greater flexibility, cost-effectiveness, and streamlined operations. Here are some benefits of a cloud-based phone system that make it an excellent solution for small-scale businesses:
- Great pricing
Cloud phone systems provide businesses with discounted pricing for annual commitments and even more reduction on prices for purchasing a large number of user accounts. Moreover, small businesses can call a sales agent to inquire about any offers available before making the final decision. Aside from that, since cloud phone solutions do not call for expensive equipment, the price of setting up these systems is much more affordable than other alternatives.
- Scalability for more team members
Small teams can grow quickly as the business expands. Cloud phone systems allow easy scalability to match the growth of the company without much additional hardware. New users can be added within a few clicks, no matter if they work remotely or on-premises.
- Unlimited calls and call recording
Unlimited calling and call recording are essential for small businesses that want to expand and improve their customer support services and call quality. Unlimited calling allows you to make calls without worrying about additional charges, while call recording allows you great training opportunities and the ability to archive important conversations.
- Toll-free phone numbers for call center needs
Many cloud phone service providers offer a toll-free number or numbers allowing customers to reach them anytime without extra charge. This allows small businesses to develop a professional image and enables clients to reach out whenever needed.
- Advanced call routing
Advanced call routing is another innovative feature of cloud phone systems that is perfect for small teams. This feature is powered by artificial intelligence and routes calls to multiple channels for self-service or live agent support. Advanced call routing can help keep existing customers satisfied and provide new customers with a better call queue experience.
- Easy-to-use softphone apps (like Google Voice, Skype)
With softphone programs, you can make voice calls over the internet without any worries. A softphone app provides a user-friendly interface that you can use to call a video conference, access recent calls list, browse through your address book, and more.
What are the pros and cons of cloud-based phone systems?
With various features and ease of use provided by cloud-based phone systems, there are a lot more potential advantages than disadvantages for businesses. Here are some of the main pros and cons of cloud-based phone solutions:
Pros
- Users can receive and make calls from anywhere in the world with an internet connection.
- The system can easily integrate with other business applications, streamlining work processes.
- These systems work reliably even in case of an emergency or a disaster.
- You can connect with others using a PC, laptop, tablet, phone, or any other mobile device with the internet.
- Business owners don’t need to purchase and maintain expensive hardware to support the cloud-based phone system.
- Some companies can provide speeds, data plans, customer support, and system implementation tailored to your organization's needs.
Cons
- The system depends on the presence of a stable and reliable internet connection.
- Some cloud-based systems fail to integrate with older analog equipment for facility control and paging.
- Location data is limited for emergency calls.
- There may be a possibility of choppy audio and latency in Wi-Fi dead spots.
The best phone system providers for small businesses
As a variety of businesses already make the shift to cloud-based communications, it makes sense for growth-oriented companies to leverage cloud PBX systems to stay ahead. The benefits of cloud-based phone systems easily outweigh the disadvantages, especially for small businesses that are working with a few team members and have a limited budget. With the right provider, you can get excellent customer service, a user-friendly interface, affordable monthly and annual plans, fantastic calling features, and so much more.
- 8x8 8x8 offers various features with even the most basic plan, which means small businesses can benefit from a range of functionalities as usually expected with a complete business PBX system. The basic plan usually includes all features related to call handling, audio and video conferencing, auto-attendant, SMS, and team messaging. The voicemail services are the best features added in the plan for small businesses, which include voicemail transcriptions. For more sizable companies, 8x8 offers a plan with SSO, Okta integrations, unlimited faxes, and call recording capabilities. Companies that want to enhance customer service and improve user experience can choose a higher tier of 8x8's cloud phone system plan with an operator switchboard, call quality reporting, analytics, and extended unlimited calling.
- Nextiva Nextiva is a platform that provides customers with tools and features to make phone calls, conduct video conferences, and stay connected with business messaging. The company allows small businesses to mix and match plans to build a custom phone solution that offers the right set of features and pricing for each team in the organization. Although Nextiva's ease of use and integrations make it attractive to organizations, some of its features, like voicemail transcription, are only available with higher-tier plans.
- Vonage Vonage is a great platform that offers comprehensive phone services along with team messaging, video conferencing, and optional phone hardware. It provides businesses of all sizes with dynamic features and makes it easier for users to set up call flows, add new members, and integrate key business tools like Google Workplace, HubSpot, Salesforce, Zoho, etc. However, Vonage requires companies to agree to a one-year contract, which can deter companies from choosing it. This is because early termination can cause organizations to incur high fees up to the total cost of the service contract.
- RingCentral RingCentral is a cloud phone, video, and messaging service suitable for all industries. The system can empower hybrid and remote workforces with easy-to-use interfaces and mobile applications to ensure they can collaborate from anywhere in the world. It also boasts multiple data centers globally that guarantee better call quality and uptime, as well as a great number of integrations available for streamlined operations. Nevertheless, RingCentral may not be ideal for companies who are looking for a budget-friendly, tailored cloud-based phone system since companies cannot mix and match service plans for a custom solution.
- Dialpad Dialpad is a business messaging and phone service that focuses on AI-powered tools and features. Its voice intelligence tools are quite popular among users and can be used to transcribe calls, track action items, send post-meeting summaries, and take notes. All of Dialpad's plans include most of its advanced communication features, which can help companies communicate more effectively even with a limited budget. However, Dialpad only offers a video meeting tool limited to 10 individuals and is not available worldwide.
8x8 Cloud Phone System solutions, perfect for small businesses
8x8 provides small businesses the chance to achieve their goals with a top-notch cloud phone system that can be customized for any organization. With key features like unlimited calls, toll-free business phone numbers, call recording, and more, you can always stay one step ahead of the competition. More functionalities like cloud PBX voicemail and video conferencing make the cloud phone system the perfect solution for budding companies.
To learn about our cloud-based phone solutions, feel free to contact us for more information or share details about your business needs.