Business telephone systems have gone through major changes in the past couple of decades. Whether you’re looking for a landline or VoIP-based system, you have tons of options to fit your organization’s unique needs. But not every phone system is made the same. Choosing the right system and the right provider can help you better connect with coworkers and customers alike.
In this guide, we’ll explore the different types of business phone systems, their features, and which might be best for you. If you’re located in the US and you need help making international business calls, we sell VoIP services that make it even easier! We’re located in Atlanta but we serve the entire US with VoIP and business internet services, including Los Angeles, Auburn, Memphis, and Orlando.
Different Types of Business Phone Systems
While options used to be limited when it came to choosing a business phone system, today, rapid advances in technology mean there are several options available, each with unique features and benefits. There are three main types of business phone systems, including:
- KSU phone systems
- PBX phone systems
- VoIP phone systems
KSU (Key Service Utility) Phone Systems
KSU systems are traditional, landline-based systems that offer basic calling features like call transferring, call holding, and intercom. They work best for organizations with 50 to 100 employees, but lack the scalability to accommodate much more.
KSUs often require a large capital expenditure up front. In order to set one up, you’ll need to hire someone to install the system and connect each line to the KSU. Plus, you’ll need to factor in the cost to maintain the hardware. While KSU systems used to be widely used, today, businesses are abandoning them in favor of phone systems that offer more features, like PBX and VoIP.
PBX (Private Branch Exchange) Phone Systems
PBX systems are more advanced than KSU and are designed to handle larger call volumes and more complex routing. They allow businesses to manage internal and external calls on a single system. A PBX system works by routing incoming and outgoing calls through a centralized system in a business, similar to a switchboard. In addition to routing calls, PBX systems come with features like call transfers, voicemail, auto-attendants, and call queues. This setup gives businesses more control over their communications while handling multiple calls efficiently.
There are two main types of PBX systems:
- On-Premises PBX: This traditional setup involves physical hardware installed at your business location. Your business is responsible for maintenance, upgrades, and system management. While the initial setup costs can be high, the goal is to save money with lower ongoing costs. You have more control over your system, including the ability to customize and keep your system secure from cyberattacks.
- Hosted PBX: Also called cloud PBX, a hosted PBX is hosted off-site by your provider. They maintain the equipment off-site, giving you access via the internet. Hosted PBX phone systems come with lower upfront costs since you don’t have to purchase hardware or pay for installation. They’re easy to scale and require minimal maintenance on your part. All you have to do to set up your system is sign up for service, pay your monthly subscription (usually based on number or users), and set up your phones.
VoIP (Voice over Internet Protocol) Phone SystemsSimilar to hosted PBX, VoIP systems transmit phone calls over the internet rather than on a traditional phone line. They offer the most advanced features, like mobile integration, video conferencing, voicemail transcription, call recording, team chat, and more.
VoIP systems can be extremely cost-effective, costing less to set up and maintain than both KSU and on-premise PBX systems. They also come with tons of flexibility, allowing you to communicate wherever you have internet access. All you need is a high-speed internet connection and an internet-capable device and you can start making phone calls.
Best for Small Businesses
Choosing the right business phone system for your organization starts with choosing the right type for your business. For small businesses, we recommend either a KSU or VoIP system. KSU systems work well for organizations with simple routing and communication needs with up to 100 employees. Basically, if you’re looking for a landline-based system without any bells and whistles, KSU systems are a reliable way to handle business communication. However, note that they are becoming more outdated as VoIP technology evolves.
VoIP systems can be as simple or complex as you need, making them an ideal option for just about everyone. They’re easy to set up, easy to scale, and extremely flexible. If you have a legacy system that you’d like to upgrade, you can even purchase adapters that allow you to use analog equipment with a VoIP-based system.
Best for Enterprise Businesses
Between multiple locations and the number of employees, enterprise businesses often have much more complex communication needs than small businesses. The right type of business phone system depends on the specific features you’re looking for, but we recommend either a PBX or VoIP system.
PBX systems connect you with coworkers and customers alike, allowing for advanced routing and features. The initial setup can be costly (especially for an on-premises system), but it can handle your more complicated communication needs.
VoIP-based systems offer even more flexibility than on-premise PBX. Whether you choose a simpler cloud-based PBX or opt for an all-in-one UCaaS (Unified Communications as a Service) system, you’ll be able to find a plan that has all the features you need.
IP Phone Systems for Small Businesses
If your small business is looking into an IP phone system, it’s important to look at how it compares to a traditional PBX system. An IP phone system is the hardware/software setup that uses VoIP technology to manage business communications. It may include IP phones, a VoIP server or PBX, and internet-connected devices. Some of the benefits of IP phone systems for small businesses include:
- Lower costs: IP phone systems are significantly less expensive than traditional landlines. With little to no maintenance and no need for expensive hardware, you can save tons of money.
- Professional features: While features vary depending on the provider, IP phone systems offer advanced features like auto-attendants, voicemail transcription, call forwarding, call recording, analytics, call routing, video conferencing, and more. They can help even a small team look polished and established.
- Flexibility: Unlike traditional PBX or KSU systems, IP phone systems provide you with tons of flexibility. You can make and recipe calls from any device, including your mobile phone, laptop, tablet, or deskphone. This makes them perfect for remote or hybrid teams, allowing employees to work from anywhere without missing a beat.
- Easy to scale: With an IP phone system, you can add or remove users easily as your business grows or changes. There’s no need for complicated installations or rewiring, and you don’t need to predict future growth to have enough lines.
- Simple setup and management: Cloud-based systems require little to no on-site equipment, leaving you without the hassle of maintenance.
- Better collaboration: Because IP systems rely on the internet, they’re able to offer many more features than simple voice calling. Depending on your provider, you might be able to chat with your team throughout the work day, make video calls, and share files, all on one platform.
An IP phone system is one of the smartest investments a small business can make to improve communication, lower costs, and support a modern, flexible workforce. Whether you’re a startup or an established company looking to upgrade, IP systems offer the tools and connectivity you need to grow.
How to Set Up a Business Phone System
Setting up a business phone system can take some time, but it doesn’t have to be complicated. With the right plan and tools, you can have a professional, feature-rich system up and running quickly, no IT team required.
First, you’ll want to identify your business needs and select the type of system you need. If you choose a landline-based system, you’ll need to hire someone to install the hardware and set up the system in your office. That’s why we recommended an IP phone system.
Once you choose your provider and make sure you have a strong internet connection, you can start communicating in no time. Most hosted systems provide an online dashboard where you can add users, assign extensions, set up call flows, record greetings, and configure auto-attendants and business hours.
Best Providers for Small Businesses
Some of the top VoIP providers for small businesses include:
- Nextiva: If you’re looking for an all-in-one communication solution that’s easy to use, consider Nextiva. It has excellent customer service and onboarding, built-in CRM, team chat, video, and analytics, and high call quality and reliability. Plus, Nextiva is easy to scale as your business grows.
- Vonage: With customizable features and integrations, Vonage is another great option. It has a strong set of features for growing teams and integrates with over 20 platforms, like Salesforce, Microsoft Teams, and Slack. Plus, flexible add-ons allow you to tailor your system to meet your needs.
- Ooma Office: For budget-conscious small businesses, Ooma Office is a great choice. With a simple setup (plug-and-play hardware or apps), Ooma Office is great for teams with minimal IT needs.
- Grasshopper: For solopreneurs and microbusinesses, Grasshopper provides you with the features you need to create a professional image. It uses your existing phone to create a professional system, keeping personal and business calls separate.
Is VoIP Worth It for Small Businesses?
Yes, for most small businesses, VoIP is absolutely worth it. It’s more cost-effective, flexible, and feature-rich than traditional phone systems, especially in today’s digital and hybrid work environments. You’ll save money with lower monthly bills and no expensive hardware or maintenance. Setup is easy, and you can scale as your business grows.
Plus, even basic VoIP plans usually include auto-attendants, voicemail-to-email, call forwarding, call queues, and recording, and mobile and desktop apps. If your business needs flexibility and modern features with a plan you can afford, VoIP is 100% worth it.
Business Telephone Systems Conclusion
While today’s market offers tons of business telephone systems to choose from, IP phone systems are the way of the future. These internet-based solutions provide so much more than voice calling. You’ll get access to advanced features that allow you to communicate and collaborate with ease.
With so many providers, it can be tough to choose the right one. If you need help choosing a business telephone system, OneStop Communication can help. We’ll provide quotes from top providers so you can find the plan that meets your needs and fits your budget. Contact us today to see how we can help you with all your business telecom needs!