Modern business owners are continuing to use cloud based technologies in growing numbers in order to support their operations. The solutions often remove the requirement to purchase and install costly hardware as well as  the need to meet the ongoing maintenance and upgrade costs associated with traditional phone systems.

A cloud-based phone system can not only save you money, but also brings with it many other benefits, such as automated call handling and virtual receptionists. It can also give your business a greater sense of professionalism that will impress your customers.

Want to see out what service would suit your company best? Use our free comparison tool to find your perfect cloud phone provider.

In this guide:

• Cloud Based Phone System Reviews
• What is a Cloud Phone System?
• How do Cloud Based Phone Systems Work?
• Virtual PBX Features
• Benefits of Cloud Hosted Phone Systems
• Premise Based VoIP vs. Cloud Phone System
• Cloud Based Phone System – Case Studies
• Next Steps to Getting a Cloud Phone System

Best Cloud Based Phone System Comparison

We've given you the full lowdown on the most popular cloud based phone systems below, but this table provides a quick comparison of them:

	Nextiva	RingCentral	Jive	8x8	Mitel	Vonage
Price	From $19.85	From $15.99	From $19.95	From $19.99	From $20.99	From $19.99
Pros	Lots of excellent features, especially in the advanced plans which offer call recording and voicemail to text.	Stands out by offering call management, mobile apps and HD video conferencing with every package.	Excellent 24 hour support and an uncomplicated product range.	Highly scalable with excellent integration and features, such as instant messaging, as standard.	A fully featured product range and well revered customer service explain why Mitel is so highly regarded.	Excellent voice clarity and good pricing for international call rates – handy if you conduct a lot of business overseas.
Cons	Some users state that the initial set up can be pretty time consuming.	Reviewers of RingCentral can sometimes be critical of the level of customer service.	Like Nextiva, some users complain that the set up is confusing and takes time.	In online reviews, users have complained that the customer service is not wholly effective when things go wrong.	Mitel is slightly pricier than competitors. Although it’s not much in isolation, it could add up for those with large companies.	Vonage charges you extra for some features that other providers include in their packages.

Cloud Based Phone System Reviews

If you're looking for a cloud phone system, than we've got some good news – we've done all the leg work for you. Below we've collected some of the best providers in the market today, all offering great features that can complement your business, and competitively priced too.

Best Cloud Phone providers:

• Nextiva
• Ring Central
• Jive
• 8×8
• Mitel
• Vonage

What is a Cloud Phone System?

Cloud phone systems refer to the off-site hosting of a company’s telephone service.

Rather than housing your business’s phone system infrastructure in your office, your provider keeps the equipment at a remote cloud data center. This means your data is securely stored in a server that can be reached over the internet, which for most modern businesses can be additional extensions to their existing data storage.

Also known as virtual or hosted PBX, cloud based phone systems take advantage of secure data technology to offer businesses the opportunity to completely  remove  the need for expensive office based hardware and unnecessary  wiring.

Day-to-day phone use is no different than an on-premise service. However, the provider oversees all maintenance and upgrades at the off-site location. This means hosted PBX VoIP providers take care of any technical issues that may arise and deal with any maintenance or upgrades that need to take place. This leaves you with a modern phone system without the inconvenience of the management and tech support that goes with it.

How do Cloud Based Phone Systems Work?

When it comes to a cloud phone system, all of the software required by a business to deliver their customer service function is located on a secure server and accessed through a web browser. Without the need to locate hardware on your premise as well as maintain it your business can concentrate on what it is good at.

Cloud phone systems are handed completely by the Hosted PBX provider, all you need is a reliable internet connection that can keep your work force connected whether at their desks or remotely.

Cloud based solutions provide businesses with a range of features which allow them to offer a number of customer service based functions.

A virtual PBX means no messy wires in your office

Virtual PBX Features

Upgrading to a cloud-based phone provider means you'll gain additional benefits that a physical PBX just won't be able to offer. And yes, it goes beyond just getting rid of those tangled phone wires. Here are the biggest benefits to a virtual PBX.

Messaging – Cloud systems enable businesses to easily manage messages and record voicemail which can improve customer service standards

Call Forwarding – Calls can be easily diverted to any phone in the network, making it ideal for use where businesses have different departments or teams

Voicemail – Easily record company voicemail messages and offer the ability for your customers to also leave messages when you are unavailable. Multiple voicemail messages can be created and voicemails can be delivered as text to mobiles or laptops

Business Text Messages – Marketing or customer messages can be distributed to your customers through a text message using a local telephone number

Versatility – The systems are extremely versatile, either using traditional office phones or using a mobile device

Benefits of Cloud Hosted Phone Systems

Many businesses prefer cloud based systems over the traditional phone network because it brings a number of benefits including;

Resource Savings – Cloud phone systems are much more affordable than a traditional landline network, not only in terms of initial installation and ongoing costs

Setup – As there are no telephone lines to install, a cloud based system can be installed and set up quickly and easily

Remote connectivity – Cloud systems can facilitate operations when teams are geographically dispersed with remote staff being able to connect and take calls regardless of their location

Advanced Functionality – Cloud systems have a range of advanced features that can be added such as extensions, management of messages, call forwarding and business messaging.

Flexibility – Cloud VoIP systems allow companies to add an unlimited number of new users, no matter where they’re located.

This way, you never have to stress about exceeding your phone system’s capacity, and with many providers, you only pay for what you need. By contrast, expanding legacy and other on-site systems is complicated and costly.

Frees up resources – By hosting your phone system in the cloud, you can eliminate common IT headaches that arise from on-premises system glitches.

Instead of spending time and money fixing phone problems, your team is free to focus on more important tasks.

New features are easily added – If you host your phone system on site, you’re limited to the features that the system comes with out of the box. Upgrading is a painful and expensive experience.

Cloud systems use a single, centralized software platform. New features can be seamlessly added to all users at the same time without disrupting service, or requiring the use of additional hardware.

Disaster recovery – Some on-premises phone systems do offer redundancy and back-up features, but they require additional installation.

Many cloud system providers, however, offer disaster recovery services as part of their initial implementation.

In the event of a power outage, natural disaster, or in the unlikely event that the cloud center’s wires are cut, calls are saved and re-routed to alternate lines.

Premise Based VoIP vs. Cloud Phone System

It’s important to understand the differences between a cloud phone system and VoIP.

The two terms are often used interchangeably, and while using the internet to make calls is the foundation for both systems, they don’t necessarily mean the same thing.

When comparing on-site VoIP solutions with cloud based systems the easiest way to find the right fit for your businesses is to highlight the differences. This should allow you to identify which system is the most ideal solution for your needs.

Cost

Cloud-based phone systems are typically cheaper upfront, but businesses pay providers a monthly fee per user.

On the other hand, premise-based VoIP systems are more expensive to set up, but don’t include a monthly fee.

After a certain point, it becomes more affordable for a company to own its equipment rather than pay ongoing fees. However, cloud systems have advantages for small and large businesses alike.

Infrastructure

A major distinction between premises-based and cloud systems is infrastructure.

With on-site VoIP, a company’s hardware and equipment is kept in a dedicated IT space, much like traditional phone systems. With the cloud, the gear is stored at a separate location.

If you prefer to keep your legacy phone system and its existing equipment, some providers can connect your analog phone lines with digital voice services through additional hardware.

Scalability

If you want an on-premises solution and anticipate growth in your business in the near future, you’ll need to buy a larger appliance.

But with cloud services, you can easily add or subtract extra lines and features, often at no additional cost. For more information on the choices available to your business visit our best VoIP providers page.

Cloud Based Phone System – Case Studies

To help you decide whether cloud-based phone systems are the right choice for your organization we have put together two case studies below of businesses that have made the switched the cloud and thrived. As already outlined in this guide there are a number of benefits associated with hosted phone system solutions and why they’re the right choice for any modern business.

Pacific BMW

As one of the largest BMW dealerships on the west coast, Pacific BMW needed an advanced phone system to support its team of 150 employees. Previously, the Glendale, CA-based dealership had used an expensive, on-premises PBX system to handle its calls.

It answered basic communications needs, but failed to deliver the kind of efficient performance required by its diverse staff of sales associates and technicians. Given BMW’s reputation for technological sophistication, Pacific BMW switched over to RingCentral’s cloud-based phone service.

Previously, its system provider had to send out a technician to perform maintenance and upgrades, which was costly and cumbersome. However, since the switch, the company leaves oversight to RingCentral.

Plus, rather than giving out separate office and mobile numbers, the sales team now offers one phone number that rings on different devices.

Natural Running Store

Natural Running Store is an online outlet catering to runners who want shoes and products that support their body’s natural running technique. Patton Gleason, the store’s president, wanted to stand out from the competition, but was frequently on the go, attending meetings with vendors and customers, as well as giving presentations.

By implementing Grasshopper’s cloud-based phone system, Gleason established one central phone number. Customers and vendors can now reach him, regardless of location or time.

As a result, he’s improved existing business relationships, and created new ones.

Next Steps for Getting a Cloud Phone System

As we've shown you, there are many upsides to using a cloud business system, no matter what they size of your business. With extensive features such as automated call handling, call routing, recording and the ability to scale your system as your business grows, the question isn't should you get a cloud phone system, but rather, how have you managed without one up until now. By modernizing your phone system, you'll be able to concentrate on the more important aspects of your business.

Now you know what a cloud phone system is, it's time to get one that's right for your business. Use our free tool for a bespoke, no obiligation quote, today.