Understanding the Different Types of Business Phone Systems

When it comes to choosing a business phone system for your small business, there are a lot of options on the table. You can go with a traditional “private branch exchange” (PBX) system, or you can switch to “voice over internet protocol” (VoIP). Each system has its own set of benefits and downsides that you need to understand before making a decision. In this blog post, we will discuss the different types of business phone systems and help you decide which is the best fit for your small business.

At RanderCom, we help small businesses in Appleton, Green Bay, and surrounding communities choose, install, maintain, and upgrade their business phone systems. We are experts in all types of business phone systems and are more than happy to help you navigate your options. Learn more about our business phone system offerings and contact us today with questions.

What is a Business Phone System?

A business phone system is a multi-line telephone system typically used in business environments, that connects to the “public switched telephone network” (PSTN). What makes a business phone system different from a phone in your home or in your pocket is the broader functionality.

Businesses require their phone systems to do more than just make and receive calls. A business phone system needs to have features like voicemail, call forwarding, caller ID, conference calling, and more. Many business phone systems are now also equipped with features like auto-attendants, which can help route calls to the right person or department. Business phone systems can either be installed on-premises or hosted in the cloud.

On-premises business phone systems are the traditional option and have been around for decades. More recently, hosted VoIP business phone systems have become a popular option for small businesses. We will discuss both options in more detail below.

PBX vs VoIP: Which Business Phone System is Right for Your Small Business?

As we mentioned, there are two main types of business phone systems: on-premises PBX systems and cloud-based VoIP business phone systems. Below, we will compare the two options to help you decide which is right for your small business.

On-Premises PBX Systems

On-premises PBX systems are the more traditional business phone system option. With an on-premises PBX system, the equipment is installed and housed in your office.

One of the benefits of an on-premises PBX system is that you have more control over the features and functions of your business phone system. On-premises PBX systems are also generally more reliable than VoIP business phone systems.

That being said, on-premises PBX systems can be expensive to install and maintain. They also require more IT resources to manage. If you are interested in exploring a PBX system for your business, RanderCom can support you. Contact us today.

Cloud-based VoIP Business Phone Systems

Cloud-based business phone systems, also known as VoIP business phone systems, are a more modern option. With a VoIP business phone system, your calls are routed over the internet instead of the PSTN.

One of the benefits of a VoIP business phone system is that it is much less expensive to install and maintain than an on-premises PBX system. VoIP business phone systems are also more flexible and can be easily scaled as your business grows.

That being said, VoIP business phone systems can be less reliable than on-premises PBX systems. They also generally have fewer features than on-premises PBX systems.

So, which business phone system is right for your small business? The answer depends on your specific needs and budget. If you need a more reliable system with more features, an on-premises PBX system may be the right choice. If you’re looking for a more affordable option that is easier to scale, a VoIP business phone system may be the right choice.

RanderCom: The Best Business Phone System Provider in Appleton & Green Bay

No matter which business phone system you choose, RanderCom can help you get it up and running quickly and easily. We are a leading business phone system provider in Appleton & Green Bay, and we have a team of experts who can help you choose the right business phone system for your small business.

In addition to business phone systems, we also offer a wide range of other business communication, technology, and security solutions. Give us a call today to learn more.