How Do Business Phone Systems Work?

No matter what industry you’re in, effective communication is crucial for the success of your business. If you miss a call, you might just miss an opportunity or a new client. Maintaining smooth communication within and outside of your business is essential, and having a reliable business phone system is the key. 

But how do these systems work, and what makes them different from the regular phone system you might be using now? In this blog, we’ll discuss business phone systems and how they can benefit your business or organization.

Understanding Business Phone Systems

Unlike traditional residential phone systems, which typically only make and receive calls, these phone systems offer the range of features and functionalities required to run a business. Every business needs a system that can handle multiple calls at once, through different lines. 

There are two main categories of business phone systems: 

• Cloud-Based Phone Systems: Flexible and portable systems that leverage the internet to make, receive, and manage calls. These systems can also handle other communication functions like voicemail, video conferencing, and messaging.

• Premise-Based Phone Systems: On-site systems that utilize traditional phone lines or internet connections to make, receive, and manage calls. These also often include features like voicemail, call routing, and internal communications.

They each offer their own advantages and disadvantages, so it’s important to understand each type to choose the best option for your business.

What’s the Difference Between Cloud-Based and Premise-Based Phone Systems?

To put it simply, cloud-based phone systems use the internet to make, receive, and handle calls. Some premise-based phone systems can also use the internet (such as IP-based systems). However, they are typically known for using traditional phone lines, similar to the landlines you might have grown up using.

Cloud-based phone systems are hosted and managed by a third-party service provider, making them ideal for businesses that prioritize scalability and minimal in-house management. Because cloud-based systems use the internet, don’t require extensive hardware on-site, and are typically paid for by monthly subscription, they are generally more flexible, scalable, and easier to manage. Many small to medium-sized businesses or those with remote workforces choose cloud-based systems for their cost-effectiveness and ease of use.

On the other hand, premise-based systems (also known as PBX Systems) are hosted and managed on-site by the organization itself—making them a good option for larger organizations that can manage the infrastructure required while benefiting from having more control. A PBX system is a private telephone network used within an organization, allowing users to communicate both internally and externally. 

PBX systems have been around for decades and are a popular choice for many businesses. However, they do typically come with higher upfront costs, more maintenance, and can be more challenging for remote work.

To put it simply: The key difference between the two is where the system is hosted and managed.

Benefits of a Cloud-Based Phone System 

Cloud-Based Phone Systems are flexible and easy to use, making them ideal if your business is looking for a scalable and low-maintenance solution. The biggest advantages of cloud-based phone systems include:

• Lower Upfront Costs: There’s no need for extensive on-site hardware.
• Easy Scalability: You can quickly add or remove users as your business grows.
• Automatic Updates: The service provider handles maintenance and upgrades so you don’t have to.
• Remote Access: A huge bonus for businesses with remote or hybrid workforces.
• Reliability: They are supported by multiple data centers for better reliability and lower downtime.

Downfalls of Cloud-Based:

Despite their advantages, cloud-based phone systems have some drawbacks that may impact certain businesses:

• Dependence on the Internet: Service disruptions can occur if the Internet connection is lost.
• Recurring Costs: Although they are typically lower than fees associated with phone lines, subscription fees can add up over time, especially as the business grows.
• Limited Customization: Restricted to the features and configurations provided by the service provider.

Benefits of a Premise-Based System

Premise-based phone systems are a strong choice if your organization has advanced customization needs and in-house IT capabilities. These systems offer:

• Greater Control: Full control over system settings, features, and integrations.
• Customization: Highly customizable to meet your specific business requirements.
• Independence from the Internet: Internal calls remain functional even if the Internet is down.

Downfalls of Premise-Based:

While offering control and customization, premise-based systems come with challenges that may deter some businesses from choosing them:

• High Upfront Costs: There is a significant initial investment in hardware and installation.
• Maintenance Responsibility: Requires in-house IT expertise or outsourcing for upkeep and upgrades.
• Limited Scalability: Expanding the system may require additional hardware and installations.
• Less Mobility: More challenging to support remote work without additional solutions.

5 Reasons Why You Need a Business Phone System

As a business owner, you’re no stranger to making important decisions! If you’ve been meaning to look into if—or why—you need a business phone system, we’ve got you covered! We could go on about the benefits of implementing a business phone system into your organization, but we’ll keep it simple with these  top five reasons that our customers love:

1. Save Money: Cloud-based VoIP systems reduce the need for (and eliminate the cost of) traditional phone lines and on-site hardware, so you can keep more money for your bottom line.
2. Grow Easily: You can easily add or remove extensions and features as your business evolves, without significant infrastructure changes or additional contract charges.
3. Work Better: Utilize advanced features like call forwarding, auto attendant, and voicemail to email to help streamline communication processes which boosts overall productivity.
4. Work Together: Conference calling and other collaborative features make communication among team members seamless, regardless of their location.
5. Better Image: A dedicated and reliable business phone system projects a professional image to clients and partners, enhancing your brand reputation.

Unlock the Power of Better Business Communication

At Anavon Technology Group, we offer a large range of business phone solutions tailored to meet the needs of your business or organization, no matter how big or small it may be. When you partner with us, you get:

1. White Glove Installation: Nobody has time to “self-install” their phone systems like big companies expect you to do. Our phone system solutions are professionally installed by our in-house trained and certified technicians. Plus, installations are backed by our experienced IT team to ensure a smooth, successful deployment.
2. Try Before You Buy: It’s important to understand how your business flow might change when implementing a new phone system. Our sales team can perform an onsite demo of the system, allowing you to try out the phone system solution before purchase and installation.
3. Get to Know Your Phone System: Our customers receive personalized, onsite phone system training on the day of installation. Whether we’re training an in-house expert or each employee on how to navigate their new phone, we make sure that all questions are answered and everyone is ready to enjoy the new technology on day one!
4. Programming for Your Unique Needs: Throughout the process, we are listening to how your business operates and learning how you would like your phone system to support your operations. in order to. Every business is unique, so we custom-program each phone system to meet and exceed those needs.
5. 100% Free Lifetime Support: We understand that your business is always changing, so we offer 100% free support on your new phone system. Need a name changed? Added a new auto-attendant or changed your call routing? Simply email or give us a call and we’ll take care of it for you—all at no charge!

If you’re tired of unreliable phone services, it’s time to switch to the most reliable telecommunication solutions in Northern Michigan with Anavon Technology. We have several phone services designed to help your company run smoother than ever, whether a cloud-based VoIP solution or a premise-based solution is right for you. 

Reach out to our team today to get a free quote for your telecom solutions.