Business Phone Systems play a significant role in customer interaction. If you are a small or medium-sized business looking to engage your customers around the clock, these phone systems are an excellent option to make it happen. There are three different types of phone systems. Businesses can choose the one that suits their business needs.

In this blog, let us learn more about Business Phone Systems, their types, and which is the best one for the business.

Traditional Business Phone Systems: An Overview

A Traditional Business Phone System is a basic landline phone system that most businesses and enterprises used before cloud solutions. It is based on the Public Switched Telephone Network (PSTN) and is connected through wires and cables. 

These systems require a physical infrastructure, hardware, and software to be installed to get started. Hence, they are super expensive and require a separate IT team to manage the installation, maintenance, and upgrade activities. When it comes to security, these systems have the data stored on-site and are susceptible to power/internet outages, which can lead to data loss. 

Traditional Phone Systems are a good option for businesses that have limited customers and agents, as they have minimal lines. Also, they lack portability, so agents/employees should report to the physical premises to interact with customers. 

Cloud Business Phone Systems: An Overview

On the other hand, Cloud based Phone Systems allow businesses to make and receive customer calls over the Internet, which is called Voice over Internet Protocol (VoIP). Since these phone systems are handled over the cloud, they do not require expensive hardware or other installation equipment. 

A stable internet-connected device with headphones is more than enough. It also enables businesses to promote a remote-friendly environment as the cloud data is accessible from anywhere on multiple devices such as desktops, laptops, tablets, and smartphones. This enhances flexibility.

Moreover, there is no need to hire a separate team to manage the maintenance and upgrade processes, as VoIP solution providers will be responsible for handling them. This can help businesses save a hefty amount indeed. When speaking about the security factor, these cloud phone systems come with in-built security protocols such as data encryption, multi-factor authentication, password authentication, etc. Hence, the sensitive data is fully protected. 

Feature Comparison: Tradition Phone Systems Vs. Cloud Phone Systems

Let us compare the features of Traditional Phone Systems and Cloud Phone Systems. 

• Call Management

Traditional Phone Systems: These phone systems are connected to copper wires, which are further connected to other landline phones on the other end. They come with features such as caller ID, call forwarding, voicemail, redial, on-hold music, etc.

Cloud Phone Systems: Cloud Phone Systems comes with advanced end-to-end call management features such as Call Barging, Call Whispering, Call Forwarding, Call Analytics, Call Transfer, auto attendant, voicemail to email, Call Conferencing, Call Masking, Call Recording, setting up business hours, etc. 

• Voicemail & Call Routing

Traditional Phone Systems: These phones offer a voicemail feature when the agents/businesses are unavailable to pick up customer calls. 

Cloud Phone Systems: These VoIP systems have intelligent voicemail and routing features, such as Interactive Voice Response (IVR), Skill-based routing, Sticky Agent, Time-based routing, and Multiple call flow setup. 

• Integration facilities

Traditional Phone Systems: Traditional phone systems do not offer integration features. This means that different applications must be installed for every feature. 

Cloud Phone Systems: They specialize in offering powerful CRM integration processes. With a unified dashboard, businesses can find seamless real-time information in a single place instead of switching between applications. 

• Mobility

Traditional Phone Systems: Landlines and basic phone systems lack mobility. Because they have infrastructure and equipment set up at a physical location, it is not easy for them to migrate from one place to another. 

Cloud Phone Systems: Mobility is one of the advantages of Cloud-based telephones. Since they are accessible over the cloud with the internet, they are portable. If a business is planning to open a new branch or shift to another place, cloud phone systems are beneficial.

• Security

Traditional Phone Systems: As we have discussed previously, security is a concern for traditional phone systems. Data loss can also happen in the case of disasters and weather changes. Since there is no procedure for data backup, businesses utilizing these phone systems have to lose their data.

Cloud Phone Systems: Security is the crucial factor here, and these phone systems come with many encryption protocols. Their data is backed up frequently, and they can still store sensitive data, even during unexpected events. 

• Scalability

Traditional Phone Systems: When a business wants to add or remove new business lines, users, or phone numbers, traditional phone systems require multiple step-by-step processes. 

Cloud Phone Systems: On the other hand, adding or removing extensions, users, and numbers is hassle-free and can be done with a single click. Additionally, these systems are easy to adapt to business market trends or demands.

• Costs

Traditional Phone Systems: They are expensive since they require installation and setup. The setup costs $100, which is the monthly fee (maintenance & upgrades). If you have 100 lines every month, you will be spending $1000, which is super expensive. The pricing will skyrocket if you add more functionalities like call transfer, call queueing, etc. 

Cloud Phone Systems: Cloud-based Phone Systems are cheap and effective when it comes to pricing. A report from Telzio states businesses can reduce phone costs by up to 50% with VoIP communication. You will just be charged for your monthly or annual subscription and no hidden charges. The cost relatively varies from $10 to $30 per user per month.

• Reliability

Traditional Phone Systems: Landline phones have excellent uptime, up to 99%. However, they lack feasibility in the case of disasters and unexplained weather activities. Also, these phones do not meet the growing needs of the customers.

Cloud Phone Systems: On the contrary, these VoIP phone systems have a good uptime of up to 99.9% and are available even in unfortunate situations. Additionally, they meet the business and customer demands of today and the future. 

Conclusion:

Regardless of the business size, a business phone system is a must need that should not be ignored. They come with plenty of advantages and offer a quick opportunity to engage with customers. Hence, before making an investment, jot down your business needs, budget, required features, etc, and decide on a phone system that matches your demands and requirements.