Which Phone System is Better for Your Business?

A man in a business suit holding a smartphone and smilingAs a small business owner, you know how essential it is to have a reliable and efficient phone system. But with so many options available, it can be challenging to decide which one is right for your business. From premise-based to hosted VoIP and hybrid, the choices can be overwhelming.

RanderCom is your one-stop shop for managed IT, building security, voice & data, and business phone systems in Appleton, Green Bay, and beyond. In this blog post, we will discuss the three most common types of business phone systems and the pros and cons of each. By the end of this post, you should have a better understanding of which phone system is better for your business.

Premise-Based Phone Systems

A premise-based phone system, also known as a PBX system, is an on-premise phone system that uses physical hardware to manage and route calls. This system is physically located on your business’s premises and is typically managed and maintained by an internal IT team or outsourced IT provider.

Pros of Premise-Based Phone Systems:

There are a number of advantages to a premise-based phone system for small businesses. Here are just a few…

  • Greater control and customization: With a premise-based phone system, you have greater control and customization over your phone system’s features, integrations, and capabilities. This makes it easier to tailor your phone system to your business’s specific needs.
  • Higher call quality: Because premise-based phone systems use physical hardware, they typically provide higher call quality and reliability than cloud-based systems.

Cons of Premise-Based Phone Systems:

While premise-based phone systems are superior to other choices in some ways, there are a few additional considerations:

  • Higher upfront costs: Premise-based phone systems require a significant upfront investment in hardware, installation, and ongoing maintenance. This can be a barrier to entry for small businesses with limited budgets.
  • Limited scalability: Premise-based phone systems are limited by the physical hardware on-site, making it challenging to scale up or down quickly as business needs change.

Hosted VoIP Phone Systems

A hosted VoIP phone system is a cloud-based phone system that uses the internet to manage and route calls. With a hosted VoIP system, you don’t need any physical hardware on-site. All you need is an internet connection and a VoIP phone.

Pros of Hosted VoIP Phone Systems:

  • Lower upfront costs: Hosted VoIP phone systems are typically less expensive than premise-based systems as they do not require any physical hardware on-site. Furthermore, the monthly subscription fees are often more affordable than the maintenance and repair costs of a premise-based system.
  • Greater flexibility and scalability: Hosted VoIP phone systems are more flexible and scalable than premise-based systems. You can easily add or remove phone lines and features as your business needs change.

Cons of Hosted VoIP Phone Systems:

  • Reliant on the Internet: Hosted VoIP systems rely on the Internet, which can sometimes be unreliable. This can lead to dropped calls or poor call quality.
  • Limited control: While hosted VoIP systems offer some customization and control, they are not as customizable as premise-based systems, which can be a drawback for businesses with specific needs.

Hybrid Phone Systems

A hybrid phone system is a combination of premise-based and hosted VoIP systems. It allows businesses to capitalize on the strengths of both systems while minimizing their weaknesses.

Pros of Hybrid Phone Systems:

  • Greater flexibility and control: Hybrid phone systems offer high flexibility and control. You have the ability to customize your system to meet your unique business needs.
  • Scalability: Hybrid phone systems allow businesses to scale up or down quickly as business needs change.

Cons of Hybrid Phone Systems:

  • Higher upfront costs: Hybrid phone systems require an upfront investment in both hardware and hosted software. This can be a barrier to entry for small businesses with limited budgets.
  • Complex to manage: Because hybrid phone systems use different technologies, they can be more challenging to set up and manage than a single system.

Which Phone System is Right for Your Business?

The best phone system for your business depends on your unique needs and preferences. With that, we recommend seeking expert guidance to determine the best phone system for your business needs.

Contact us at RanderCom; we understand the nuances of each phone system and can help you find the best solution for your business. We offer businesses in Appleton and Green Bay, WI, managed IT services, building security and access control, business phone systems, and many more services to make your job easier. Get in touch with us today to learn more!

By Dylan Esterling, Owner of RenderCom

Dylan Esterling is the proud owner of RanderCom, serving Appleton, Green Bay, and communities across Wisconsin. At RanderCom, Dylan and his team offer comprehensive small-business technology solutions. Services include the sales and installation of phone systems, surveillance systems, access control systems, paging & intercom systems, voice & data services, data cabling & wiring, and IT network equipment. With years of experience in installing business phone systems and other systems, you can trust RanderCom to meet your small business tech needs. Contact us today!