Best Business Phone Systems Of 2024

By Ashita Ahuja, Technical Content Writer at SelectHub

No company wants to miss out on business opportunities or valuable clients due to poor communication. Regardless of what industry you’re in, communication is the backbone of any successful business. The right business phone system can streamline and support these essential connections, helping you succeed.

By tracking and handling all inbound and outbound contact, business phone systems ensure you never miss an important call or message from a partner or customer. In addition to the functionality of traditional telephony, these systems have other advanced features to support your operations, like automated transcription, extensive call records and unbeatable call quality.

If you’re looking for a better way to communicate, you’ve come to the right place. In this buyer’s guide, we’ll go over the benefits and features of business phone systems, industry trends to look out for and tips for how to pick the best system for your business.

Executive Summary

• Business phone systems help companies to streamline the overall communication workflow.
• Some key features include call recording, ring groups, voicemail and instant messaging.
• Key trends in the business phone systems industry include UCaaS, 5G adoption and AI.
• Make sure you ask the vendor any questions you might have about the system before committing to a purchase.

What Are Business Phone Systems?

A business phone system is a communication solution designed for business environments. In contrast to residential telephony, business phone systems include multiple interconnected telephones, often with multiple lines themselves, that can manage high call volumes.

Building on the capabilities of traditional telephony, modern-day business phone systems allow you to communicate using video, text and other mediums in addition to calls. Cloud technology makes these systems even more accessible to businesses, requiring little more than a stable internet connection to set up and use. This has become especially popular in the age of remote and global workplaces.

Types of Business Phone Systems

There are three basic types of business phone systems: KSU, PBX and VoIP. These systems differ from one another in terms of features, and each of them has a hosted and non-hosted version.

Key System Units

KSU systems can only accommodate a limited number of phone lines; hence, it’s used by companies with a maximum of 40 employees. Similar in many ways to a home telephone system, KSU has all the basic features and is easy to use. However, it lacks portability and flexibility.

If you plan to scale your business, it’s better to opt for PBX or VoIP phone systems. There’s also another variation to this system called KSU-less. While KSU-less is more portable and flexible, it isn’t sold commercially and only allows up to 10 phone operators.

Private Branch Exchange

PBX systems operate with programmable switching devices that allow automatic call routing. It’s more advanced than KSU, handling a higher volume of calls and operators, and can even run without electricity in the event of an outage.

Though it’s usually an in-house phone system, companies can also opt for mobile PBX systems that allow employees to use mobile phones as additional extensions.

Voice over Internet Protocol (VoIP)

VoIP systems are the most advanced modern telephony technology, the fastest-growing type of phone system in the U.S. They make and receive calls using the internet, enabling employees to communicate with clients or colleagues all over the world. This is especially advantageous for companies that operate in multiple locations and cater to a global customer base.

Cloud-based technologies

In addition to the three main types outlined above, some modern business phone systems fall into an emerging software category. Though VoIP is the gold-standard for digital telecommunications, cloud-based technologies, like virtual phone systems, make far-reaching, affordable contact solutions accessible to almost any organization.

While they aren’t always as advanced as full-fledged VoIP systems, cloud-based and virtual phone systems use the same basic mechanism to make and receive calls — they work over the internet, with some even using VoIP. What they lack in sophistication, they make up for in accessibility, as many virtual phone systems are extremely low-cost, even free to use.

Deployment Methods

There are two typical deployment methods for business phone systems — on-premise and cloud-based.

On-premise systems are systems you have in-house, in your building or office. Companies purchase their own equipment and usually need to employ a dedicated IT staff to oversee system maintenance and updates.

Cloud-based systems, on the other hand, don’t need in-house infrastructure to work. Calls are handled over the internet, so the only equipment you need are the endpoint devices, like desk phones or computers, to make and receive calls. The vendor is usually responsible for maintenance and updates.

The setup you choose depends on what suits your needs best. If you’re looking for a dependable, flexible, user-friendly system to help a mostly remote staff communicate, you should probably opt for a cloud-based system. If your team works in a dedicated office space and you want more control over your system, you might prefer an on-premise option.

Primary Benefits

The right business phone system can benefit your business in many ways. Let’s go over some of the main benefits.

Lower Costs

Eliminate the costs involved with expensive hardware, complex instruments, wires and long-distance carriers. You can access and enjoy advanced features that are far more affordable and capable than traditional phone systems.

Better Security

Using a private phone may put your private data at risk. Employees using their own devices could compromise the security of your clients’ information and your own proprietary data.

A cloud business phone system ensures that your personal contact information is secure and confidential, with built-in security features to prevent data leakage and exposure.

Scalability

Add extra phone lines, extensions and more advanced features as and when you need them. Quickly install new phones to keep up with growing staff and minimize workflow disruption. A cloud phone system has the added benefit of reduced communication downtime due to timely updates and maintenance.

Better Communication

Manage your calls from pin to plane, including where and when you receive them. Interact with clients flexibly using multiple channels and networks and easily share documents and information even while you’re on the go.

Implementation Goals

Basic Features & Functionality

Advanced Features & Functionality

Current & Upcoming Trends

The business phone systems industry is constantly evolving. Here’s an overview of the latest trends and changes to watch.

Hosted VoIP

An increasing number of companies are moving towards hosted VoIP services as they’re more affordable and require less maintenance. SMBs and large companies alike are looking at adopting VoIP services to scale their infrastructure and meet increasing demands.

Unified Communications as a Service (UCaaS)

UCaaS adoption is on the rise, allowing businesses to set up large, multi-channel communication infrastructure at a more affordable price point than traditional models. Hybrid and remote workplaces have only increased its popularity because of how well it supports distributed workforces.

5G Adoption

The 5G adoption increases communication speeds and improves response rates. Its superior bandwidth and reliable connectivity make it an essential upgrade for any business that wants to stay competitive.

AI

An increasing number of businesses are leveraging AI for personalization and customer service purposes, with 52% of companies accelerating adoption due to the COVID-19 pandemic. AI not only helps intelligently route and organize calls for optimal service, but also gives companies unprecedented insight into their customers’ preferences and needs with data analytics.

Software Comparison Strategy

With so many business phone systems on the market, it can be difficult to decide which solution is actually best for your organization.

Start by considering what your business needs. Ask yourself some basic questions. Where does your current communication fall short? What do you hope the software will address?

Once you’ve compiled a few potential options, don’t forget to research your vendors. You can check online reviews, read industry guides and ask colleagues for their recommendations. Some vendors may even offer a free trial of their product, so you can see how the system functions in your business before you commit.

Cost & Pricing Considerations

Investing in a new communication system is a significant step for any company. Many factors can affect the total cost. A standard analog phone system is a cheaper option than a hosted PBX or VoIP service, but the difference in functionality is massive.

Make sure to consider all potential costs, including hardware, installation, platform charges, SIP Trunking/ISDN charges, probable subscription charges and other expenses.

You can always start with a more affordable package or basic version before updating to a more advanced system. Sometimes, a basic program is all you need to meet your communication needs. Just because something is more expensive doesn’t mean it’s more suitable for your business. You don’t want to pay for advanced features you won’t use.

Other factors that might affect cost include:

• Number of phones
• Business size
• Features
• Customer service and support
• Upgrades

Questions To Ask Yourself

Use these questions as a starting point for internal conversations:

• What challenges is my business currently facing, and how can business phone systems help solve them?
• What type of package or subscription will be best for my organization?
• What is my budget?
• What features of this software will be most helpful to me?
• How will this software enhance my business operations and increase efficiency, productivity and sales?

Questions To Ask Vendors

Use these questions as a starting point for conversations with vendors about the vendor and the software:

About the Software

• Which platforms does the software support?
• Will the software be beneficial for all the teams in my organization?
• Does it run smoothly, and is the interface easy to understand?
• What are the different subscription plans or packages to subscribe to?
• Do less expensive programs offered have certain limitations? If yes, what are they?

About the Vendor

• How many years of experience do you have in this industry?
• How many companies have successfully employed this software?
• What support and training do you provide?
• What company sizes do you typically work with?
• How long does onboarding take?

Next Steps

The right business phone system can improve communication, team collaboration, build a professional image for your company and enhance your mobility. While selecting the right product isn’t always an easy task, we hope this guide has given you a solid starting point for your search.

If you need more help, check out our comparison report to see how top industry leaders stack up. Good luck!

Product Comparisons

• RingCentral vs 8x8
• 8x8 vs Nextiva
• Vonage vs Nextiva
• Vonage vs 8x8
• RingCentral vs Vonage

Additional Resources

• Business Phone System Features Checklist