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Traditional PBX stands out the most from the other two, since it’s based on hardware rather than cloud-based technology. A traditional PBX (private branch exchange) system is built around the idea of using copper wires and physically connecting them to the system as a whole.

While traditional PBX used to be popular, it’s not used often anymore (and the technology itself has evolved a bit). That’s because the hardware is clunky, expensive to install and maintain, and not very scalable.

All three of these issues are addressed by both IP-PBX and cloud-based phone systems.

Let’s start by looking at IP-PBX. This is basically a more modern version of traditional PBX, except that instead of relying on physical hardware, it links devices to a public switched telephone network (PSTN) using the internet.

With IP-PBX, it’s easy to dial-in remotely. It’s also much easier to scale up, since users no longer have to wait for all that hardware to be installed just so they can use the phone system.

Lastly, we’ll consider cloud-based phone systems. These are generally considered the best business phone systems, since they do everything IP-PBX can do, and then some.

Cloud-based phone systems are the most flexible option. They’re fully internet-based, meaning you can even use them with software pieces like softphones. They often include video calling functionalities that also work via the internet, as well as a whole host of other functionalities.

There are a great number of advantages to using cloud-based phone systems when you’re running a small business.

For example, VoIP business phone solutions are highly scalable. Whenever you want to introduce new employees into the company, you can get them set up with your VoIP phone system in minutes—without having to pay to install new hardware. That’s a huge benefit to small businesses that are looking to expand in the future.

Cloud-based phone systems also benefit from the fact that they let users connect with anyone in the world. Dialing someone down the street costs the same as dialing an international number, meaning physical distance won’t be an issue for customers or distributed teams.

Small businesses will also be delighted to find that cloud-based phone systems are more cost-effective than their traditional counterparts. That’s because there’s no hardware maintenance or upkeep to handle on the business’ end—all of that is handled by the VoIP provider.

!!! By choosing a cloud VoIP business phone system provider, a small business is making a sustainable, cost-effective investment in its future.

As we mentioned earlier, this is partly because of how scalable these kinds of solutions are. The more employees a small business plans to take on in its future, the more helpful a cloud VoIP system will be to that business.

They also help make small businesses easier to reach. Unlike traditional telephony, cloud VoIP telephony is always accessible as long as you can use the Internet. That means the business never misses important calls from customers or partners.

(If you’re concerned about your cloud phone system’s ability to always remain reachable, you can always ask the company about its uptime. Some providers will have an uptime guarantees, so you can rest easy knowing your phone system will always work smoothly.)

As an added bonus, the best cloud VoIP phone providers will make it easy to host video conferences and speak face-to-face, virtually, with anyone in the world. That’s another great help to small businesses that can’t afford to send their employees to conferences in person.

They should! Business phone system providers can give brand new phone numbers for small businesses, if they’d like them. You can always choose to set up a new account and ask for new phone numbers in the process, if they’re not already automatically included with your chosen package deal.

However, you can also usually use your old phone number.

That’s especially useful if you’ve got a familiar phone number, or if you’re using a vanity number that’s particularly easy for your clients to remember. You might want to keep an iconic number, too, or just the one you’ve finally managed to memorize after years of always forgetting the last two digits.

Whatever the reason, keeping your existing number is pretty much always a possibility with the right VoIP provider. So, in short, providers can give you a new number, but they can also help you keep your existing number as you make the switch to them.

Good question! As a small business, you might be used to the idea of working mainly with local suppliers or partners. So, if you're wondering, “Do I need to only work with business phone system providers in my area”?

The short answer is no. You don’t need to choose a business phone system from a provider based near your business. Thanks to the benefits of cloud telephony and hosted systems we mentioned earlier, you can find the perfect small business phone solution from a provider that's based—well, just about anywhere.

Dialpad, for example, is used by small businesses literally all over the world. And in many countries around the world, you can get local numbers that will still show your customers that you have a location or office that's in their region!