Consumer Advocacy
What you need to know
Business Phone Systems

  • VoIP phone systems are the best choice for businesses
  • Internet-based systems are cheaper than traditional landline systems
  • We put an emphasis on functionality and flexibility
  • Remote workers depend on technology and communication
Our Approach

How we analyzed the best Business Phone System Providers

Technology
Business phone systems are becoming internet-based. However, innovation should not come at the expense of reliability and consistency.
Features
To keep competitive, many companies offer an array of cool-looking features. We favor companies that have useful features and give users the opportunity for customization.
Integrations
We value phone systems that can integrate with different business software, providing consistency and user-friendliness.
Support
Businesses never stop, and neither should your support. Phone system providers should provide reliable, round-the-clock support to fix any issues that might arise.
Pricing
Businesses phone plans depend on the needs of the business. We took a long, hard look at the different plans and features offered and checked which providers offered the most competitive prices.
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We receive compensation from these partners, which impacts the order they appear on the page. That said, the analyses and opinions on our site are our own and we believe in editorial integrity.

Our Top Picks: Business Phone Systems Reviews

The business phone systems we reviewed have been researched with small and midsize businesses, and emerging startups in mind. We also considered businesses that are in the process of scaling up.

Nextiva review

Best Overall

After much consideration, we judged Nextiva to be our top pick for business phone system provider. With a great combination of functionality, reliability, scalability, and price, Nextiva is the most versatile business phone system in the market, offering a robust telecom system.

Nextiva’s phone system is internet-based, offering a customer relationship management (CRM) approach to business communications. This means that users can call, message, save all the history, and see information and analytics of prior communications in real time. All of this is done through a single system for convenience, instead or a suite of applications or programs independent of each other.

This company’s system can offer all this functionality through a cloud-based voice over internet protocol system. Sounds complicated, right? We know. To explain it simply, voice over internet protocol, better known as VoIP, is technology that allows users to make calls through their internet broadband connection. As you will notice while reading our reviews, all our picks offer VoIP. In the Helpful Information section of this article, we will explain in depth what VoIP is and how it works. 

Reliable & Secure

Nextiva boasts round-the-clock monitoring, a disaster preparedness plan, and excellent security. This means that there is no need to worry about whether your phone system is up. The company guarantees 99.999% uptime, the industry’s gold standard. Nextiva also discloses its performance and network status, updating customers on a real-time basis if there’s an issue and when it’s resolved. 

Screenshot of nextiva.com: July 25, 2019

Since their telecom system also works as a CRM, it is important that all information is secure. Nextiva’s commitment to keeping all information secure and protected is apparent. They are compliant with the Health Insurance Portability and Accountability Act, Payment Card industry Data Security Standard, and Service and Organization Controls. Nextiva’s data centers are certified by the International Organization for Standardization/International Electrotechnical Commission.

We were also impressed with Nextiva’s adaptability. They recommend different suites geared towards different business needs, such as customer relationships or business communications. What we noticed is that each suite adds or improves over the other, covering all needs. This is particularly helpful and cost-effective when scaling up. Nextiva’s prices are not the cheapest, but they are definitely competitive within the industry. If the business is growing, Nextiva may be the most reliable and cost-effective option in the long run. 

Screenshot of nextiva.com: July 25, 2019

Features & Integrations

Nextiva offers different packages tailored to cover many business needs. However, even the most basic package includes the features that are to be expected from VoIP, like auto attendant and call forwarding, plus a few more such as music on hold and virtual fax. Other packages include even more features, such as instant messaging for coworkers and professionally recorded greetings. 

Something that sets Nextiva apart is the number of integrations they provide, including Zendesk, Salesforce and Mailchimp. The company’s customer service team helps customers set up any integrations. When looking at different customer review websites, we were surprised Nextiva tended to have high marks and congratulatory comments on their customer service and setup. The industry is usually riddled with dismal customer reviews, and although Nextiva does get some of the usual critical remarks, they managed to surpass the average ratings.

Intermedia review

Best for Customer Service

Intermedia impressed us with its uptime service level agreement and their J.D. Power-certified 24/7 support. For any business that relies heavily on its customer service team, it’s important that its business phone system is reliable and that support is always available. Intermedia’s customers can reach the company’s support team by phone or email.

Screenshot of intermedia.net: July 25, 2019

Intermedia’s phone solution has an enterprise feel, and since it’s cloud-based, it goes beyond calling and texting. The company offers other useful services such as cloud-based backup with folder and file sharing and encrypted email, which help keep communications outside an organization secure. This benefits companies that need to cut costs by having their communications needs taken care of by one system.

Ooma review

Best For New Businesses

Ooma offers an inexpensive business phone system perfect for new businesses. This system is also a cloud-based VoIP which offers popular functionalities like auto-attendant. Ooma also includes virtual fax, call forwarding and music on hold. 

Two things that set Ooma apart is their 30-day money back guarantee and their contract-free service. New businesses can decide if this is the business phone service for them. Setup is fairly easy, and customers choose if they want to buy hardware or they prefer using their business phone through a desktop or smartphone app.

8x8 Inc review

Best for Remote Workers

Remote work has been increasing steadily for the past couple of years. Employees enjoy the freedom of working from anywhere in the world and the benefit of not having to commute. Employers cut costs because they don’t need to pay for office space and utilities. Innovation in the telecommunications industry has been uniquely responsible for this change and has helped shaped the industry. That’s why business phone solutions keep evolving. Being able to make and receive calls is no longer enough. Now businesses need phone systems that have texting, teleconference and screen sharing capabilities to keep up with the continuous stream of communication necessary to do business effectively. 

We found 8x8 to be particularly well-suited for businesses with employees working remotely. 8x8 has a great package with important integrations for GSuite, Salesforce or Zendesk, Skype for Business, Google Calendar, Outlook, among others. This is very beneficial because it allows directories to be consolidated in one place and lets users schedule meetings. 8x8 also offers video and audio conferencing, important tools that help managers keep in contact with their remote employees. 

Screenshot of 8X8.com: July 25, 2019

One thing that makes 8x8 stand out us that the company offers unlimited calling to and from up to 47 countries, which is something important to consider if a business that runs remotely needs to communicate with employees, customers, or third parties internationally. 8x8’s business phone system has features you’d expect to find in a large company’s phone system. It has contact center capabilities and customer service is 24/7. Taking all of these things into account, it would be in the interest of an owner of a remote business, especially if he or she intends to scale internationally, to check out 8x8. 


360Connect Review

Widest Variety of Options

Founded in 2005, 360Connect is an online business-to-business company that connects buyers with suppliers of a variety of products and services. Headquartered in Austin, Texas, it offers services to all 50 states and Canada. Whether users are looking for food and beverage, outsourced services, or business phone systems for their building, 360Connect offers free quotes customized to a company’s specific needs through a brief survey. Although it does not provide business phone systems and services directly, it directs businesses to the appropriate providers in the buyer's geographical location. Some of the more notable phone system providers 360Connect partners with include Nextive, 8X8, and Jive.

Considered one of Austin’s top places to work, 360Connect provides educational information of various services for buyers, including blog posts and frequently asked questions, and is very transparent about its services and website.

Customization

After users submit a quote request, 360Connects contacts potential buyers to verify their needs. Generally, according to its website, up to five suppliers will contact users with their quotes. Buyers will be able to compare business phone systems and choose the best that works for them. 360Connect simplifies the voice over internet protocol, commonly known as VoIP, business phone purchasing process. This can enable buyers to save time and money by receiving free price quotes and advice from qualified suppliers who best meet the buyer's needs.

Screenshot of 360Connect.com September 19, 2019.

Features

360Connect operates as a connector between buyers to suppliers. Information about specific phone features are not posted on their website, however, after requesting price quotes, buyers will have an opportunity to review specifics details. Buyers will be able to compare different quotes to make an educated decision. 360Connect geographic service areas include suppliers at the national, regional, and local levels in all 50 states and Canada.

Contact Information

Homepage: https://www.360connect.com/
Headquarters Address: 12416 Hymeadow Drive, Suite 200, Austin, TX, 78750


Other Business Phone Systems to Consider

RingCentral

This company has long been a leader in the industry with its wide-range of features, integrations and competitive prices. Its systems make it very easy to add users and customize call routes. Their Online Terms Agreement is very simple to understand.

Jive

With lines starting at $19.95 without sacrificing important features, it is no wonder Jive is a popular business phone solution. They are able to integrate with Salesforce and Zoho, among others.

Vonage

They easily offer the most integrations for this category, including but not limited to GSuite, Office 365, Salesforce, Zendesk, and Slack. Its terms of service and policies are to the point and easy to understand. 

Grasshopper

This company offers a very inexpensive system, with their cheapest option including three extensions for one number. The Resources section in their website is full of content for entrepreneurs and small business owners.

 

Our Research

More insight into our methodology


Technology

We favored companies that provide Voice over Internet Protocol (VoIP for short) rather than landline systems. Landlines are being steadily phased out and can’t hope to compete with the features VoIP technology provides. The VoIP market is growing because it offers a plethora of features and is internet-based. However, landlines’ voice quality remains unmatched. VoIP systems should offer a level of audio fidelity that allows them to transmit voice communications clearly and distinctly.


Features

VoIP technology provides many features that operate within a Unified Communications framework, or UC for short. This means that users can do much more than take and receive calls with their phone systems. The business phone systems we researched offer features such as auto attendant, video conferencing, call forwarding, desktops & smartphone applications, and call monitoring, among many others.

One good thing about VoIP systems is that they are scalable. We looked for companies that could scale up with businesses without sacrificing functionality. The features list needs to grow as the system scales up.


Integrations

The optimal VoIP is one that works within the UC framework, because this ensures all communication features are in one place, or at least tied together. One way to have a seamless and intuitive UC is to integrate other telecom systems the business might use. For example, it would be much more convenient for a customer service representative who missed a call get a notification go to their Salesforce inbox. Otherwise, the missed call might merely be recorded in the log, where it might not be noticed. Integrations need to be seamless and intuitive for them to truly work.

We looked for VoIPs that offered integrations. Of course, not all business phone systems have the same integrations across the board, so we made sure that our best picks for business phone systems included integrations that are appropriate to their categories.


Support

We looked for business phone systems that had a good balance between 24/7 support and/or service level agreements. Uptimes and tech support are fundamental for a business phone system to function properly. Some business phone systems that are fantastic in other areas were cut from our list because they couldn’t offer either.

We also looked at different review websites to see what customers had to say. Telecom companies tend to have dismal reviews, so we were not surprised when we saw the scathing reviews we expected. Though this is not a very scientific way to look at customer sentiment, we were able to pick up trends on what companies do well and on what they need to do better. These reviews also give us valuable insight on what customers think is important in a business phone system provider.


Pricing

A VoIP system is definitely cheaper than a traditional PBX--a welcome and affordable change. But while we love low prices, we understand that there’s only a bargain if the company offers excellent functionality. Most VoIPs start around $20 per line and include features like auto-attendant and call forwarding. Naturally, packages that offer more integrations and greater functionality cost more. However, choosing a more expensive package may help cut down costs if the company can replace some telecom applications with a UC solution.

Helpful information about Business Phone Systems

A lot--or everything, some might say--has changed in 30 years with the rise of the internet. There’s a whole generation growing up that has never lived in an offline world devoid of the ease of communication the web has brought. 

Businesses have had to adapt to the disruptive power of the internet or die trying. Some, like the encyclopedia business, never had a chance for survival. On the other hand, the internet has also created opportunity for new businesses to rise and has invigorated older businesses. And in the case of business phone systems, the internet has changed the game drastically.

If you are in the market for a business phone system, the good news is we’ve done the homework for you! 

Business phone systems utilize either landline technology or Voice over IP (VoIP) technology. We strongly suggest you choose VoIP, the internet-based phone system. And here’s why…

The Future Called and Nobody Noticed

Landlines are not here to stay--and businesses need to keep that in mind when choosing a phone. That might not seem surprising at all considering that most people we know have switched to wireless. However, when you think about company phones, what might pop into your head is a business person at a desk using an almost comically big black phone. 

But that’s no longer the norm. There’s been a consistent decline of landline users, while the number of wireless and VoIP customers increases year after year. Yet the landline business is still showing signs of life against all odds. The reason for this is that landlines have standout qualities that other telecom systems have yet to match. 

One of these standout qualities is that landline technology, though outdated, is not affected by power outages. This might not be the first thing in your mind when choosing a system for your business, but if a storm hits and your area’s power goes out, you will still be able to make calls with a landline phone. 

In fact, there is no other type of phone system that measures up to landlines in the most basic thing you use your phone for: calls. Landlines offer the best call quality, a fact that is universally accepted. Many people who argue that landline technology is not dead do so on the basis of its tried-and-true nature. 

Landlines still exist because they are the most reliable system for long distance communication in isolated or rural areas where wireless communication or VoIPs are not as consistent. They are also easier for emergency responders to locate than wireless or VoIP users. Landlines are also un-hackable, since they don’t rely on internet, but that doesn’t mean they can’t be tapped. 

However, installing and maintaining the copper wiring needed for landlines is very expensive for a product in steady decline. The last published report the FCC issued for Voice Telephone Services shows that while the number of wireless and VoIP users is increasing, the number of landline users is doing the opposite. 

And that’s not all. AT&T was the first company to propose completely phasing out landline technology and transitioning to wireless and internet-based networks. Twenty state legislatures gave AT&T the green light to leave the landline business. The company and the FCC have worked on trials to see what challenges needed to be addressed for this monumental technological transition

Understanding that the ‘Tech Transition’ was inevitable, the FCC has been putting out regulations to protect the customers when the legacy carriers, like Verizon or AT&T, transition from analog to Internet Protocol. And a clear indicator that landlines will finally kick the bucket, you can see them referenced as POTS, or Plain Old Telephone Service, on the FCC website. 

Taking all of this into consideration, if you choose a landline phone system for your business, know that you will soon have to transition to an internet-based one.

Voice Over IP Takeover

Voice over Internet Protocol, or VoIP, is a technology that allows people to make telephone calls through the internet by sending and receiving voice data packets. Unlike landlines, VoIP doesn’t require a circuit to remain open for the entirety of the call. Every time a user speaks, the sound is picked in a voice data packet and sent to the receiver. The caller’s data packets travel through the internet to a business LAN or server, then they are sent through the internet to the receiver.

Put in layman’s terms, VoIP transforms analog phone conversations into digital form so they can be transmitted through the internet. 

The first commercial VoIP was brought to the public by Volcatech Inc. in 1995. After that, more businesses jumped in and invested in and marketed the product as a way to cut down costs for long-distance calls. By 2003, eight years after the first VoIP system was released, VoIP calls accounted for 25% of all calls

In fact, you might be using VoIP without being aware of it. If you’ve made a call through WhatsApp or Skype, you have used VoIP to communicate. And why is that? Why do people and telecom providers gravitate toward this technology? The main reason is because it’s cheap. For example, people who have family or friends abroad can call or text their loved ones for free through WhatsApp if both parties have the app on their phones, instead of calling them through their wireless phones and paying long-distance fees. 

Not only VoIP is cheap, it offers many features that landlines can’t hope to provide, features many of us have come to take for granted.

infographic of landlines versus voip

As you can see in the above graphic, VoIP encompasses much more than what a traditional business phone system does. These new features are now the industry standard. Business owners and IT specialists expect many of the VoIP systems to at least offer call forwarding, auto attendant, and texting. 

VoIP is disruptive technology, and as such, it has the power to change the way businesses work. With all this functionality that was unattainable just 20 years ago, small businesses today can do things that might have seemed impossible. Prime examples are sharing presentations on a teleconference between managers, answering business phone from home or on the road, sending messages through intra-company chats, or pulling a call log with recordings and analytics. 

How Has VoIP Changed Business?

VoIP has irrevocably changed the business phone game, giving tools to companies that enable faster and more robust communication between customers and businesses and/or between businesses. It has also blurred the lines between national and international calling. 

To get a sense of how business phone systems are actually used in the small business arena, we interviewed Vanessa Montenegro, Operations Director of Flavors Food Tours, a company that conducts culture and culinary tours in Puerto Rico, St. Thomas, St. Martin, and Atlanta, GA. Montenegro offered insight into her business phone needs as a remote worker. She explained she uses the VoIP system to take customer service calls through the company’s toll-free number and international number, which are then forwarded to her customer service team. Nevertheless, she also has the ability to log in her VoIP system through her smartphone app or desktop app to make international calls, call customers or text customers.

Vanessa Montenegro, Operations Director of Flavors Food Tours

When asked about if she was happy with her VoIP system, Montenegro said enthusiastically, “Yeah! We are a small company. [VoIP] has been helpful to us and our productivity.”

After learning Montenegro does all her phone business through her mobile phone, we asked her if she would consider getting a physical phone for her home to take her business calls. In reply, she said, “I’d rather keep using my phone and having an app than having a physical phone. I think the idea of having a [physical] phone is a little outdated. Nowadays, everybody has their own cellphone.” Though Montenegro was critical of the application she used, and had to wait for it to load sometimes, she said she would recommend the system. 

With full controls and the ability to take or make business calls from anywhere, VoIP systems have made the workplace much more flexible. These systems seem particularly suited for small to medium-sized businesses, remote and digital businesses, and customer service and sales teams. Bigger enterprises would also benefit from this technology and could cut costs while adding functionality.

Functionality & Features

VoIP technology is the foundation for Unified Communications (UC), the consolidation of all internet-based telecom features into a single system. For example, a good UC system connects the VoIP system with email, calendar, and apps like Slack, Trello, and Asana. Having all these communication applications in one place is much more convenient than having all apps open and jumping from one to the other.

VoIP is able to make these tools available for businesses in a streamlined manner, helping keep productivity and efficiency levels up while providing new features that aren’t available on older phone systems. Popular features businesses might benefit from are:

  • Auto-attendant: This feature has become a popular one because it takes away the need for a receptionist. It is a voice menu that helps callers choose where they would like to be transferred.
  • Call forwarding: People who don’t want to miss a business call are able to forward all calls to their personal phone. This also helps to maintain privacy, since there is no need to give out a personal phone number.
  • Video conferencing: Especially for remote workers, video conferencing has become a necessity. This allows employees to communicate via video in real-time with anyone in the world. So if a business owner needs to have a face-to-face meeting with a person in another state or country, he or she can host it through the business phone system. This also cuts costs since there might be no need to travel. 
  • Screen sharing: This tool is a fantastic way to share presentations and explain reports when in a conference. With this feature, everyone is able to see the same document, and the person sharing can make any changes in real-time.
  • Softphone applications: One of the benefits of VoIP systems is that users don’t need hardware beyond their own personal mobile phones or desktops.

Room for Improvement

We have no qualms declaring VoIP technology a great and innovative business tool. However, that doesn’t blind us to its shortcomings. 

The biggest downside is that a good internet connection is needed to make and receive calls at all times. If users can’t access the internet, they can have the calls forwarded to another phone number. 

The recommended bandwidth users should have available to make and receive calls is 100 Kbps, 1/10 of an Mbps. This is important to having the uninterrupted, clear service businesses need. Usually, this is no problem since internet plans provide way more bandwidth than what is required, but if your business is in a rural area or a place were internet service isn’t consistent, this might become an issue. We recommend checking with your VoIP provider to confirm your specific internet needs.

The other downside of VoIP, one shared with wireless phones, is that emergency services might have a hard time locating from where a 911 call is originated. However, the FCC requires that VoIP providers meet their enhanced 911 requirements. The FCC also urges users to make sure their provider has the correct physical address and to be familiar with any limitations their service might have.

What is the Right Business Phone System for My Business?

When choosing a VoIP system for your business, it is important to ask yourself who you communicate and how you communicate with them. This will guide you when you’re looking for a system with features and integrations to match your needs. For example, if you have to communicate with various third parties across the country, you need to have video conferencing and screen sharing. 

The chart below lists the essential functionality that different types of businesses should look for. It might be that a business happens to be in more than one category, so we suggest you look for a solution that covers all or at least most of these needs.

Types of Business

Essential Features & Integrations

Remote Businesses

Video conferencing, screen sharing, company chat or integration with applications like Slack

Customer Service

Texting, call forwarding, auto attendant, email integration, toll-free numbers

Contact Center

Analytics, call recording, call monitoring, voicemail, IVR, Toll-free numbers

Sales Teams

Call forwarding, texting, email integration, calendar integration

 

While the advantages of VoIP systems are obvious, there’s no denying that choosing the best one for you is more complicated than choosing among landline systems in days gone by. Still, there is more than a grain of truth to the advertising chatter about how VoIP is a “disruptive” or “transformative” technology. Adopting it will change the way you do business. That change may be daunting in the short term, but will rapidly pay off for most small to medium-sized business.

Features Glossary

Because most people are not used to the lingo and functionality of VoIP business phone system, we decided to briefly explain some features below:

  • ACD/IVR: These technologies work together so phone systems obtain callers information to route calls according to preset rules.
  • Analytics: Depends on the VoIP provider, but most VOIP systems with call center functionality collect call data and produce reports to show average call time, average wait time, agent performance, among many other things.
  • Call Monitoring: Gives the manager the opportunity to listen in on an active call, speak to the agent while in a call without letting the customer know, and/or jump into the call and talk directly to the customer.
  • International Numbers: Users can buy an international number to call or receive calls from anywhere in the world.
  • Softphones: Applications that enable users to make calls from a desktop or mobile device.
  • Vanity Numbers: Businesses can stand out with a toll-free number, like 1-800-FLOWERS.
  • Virtual Faxing: Enables users to send and receive faxes via email.

 

 


FAQs about Business Phone Systems


How much does a business phone system cost?

Prices vary depending on functionality. However, providers tend to sell licenses based on the number of users or lines, and the norm is pricing is tiered. The more users or lines a company needs, the lower the price per line or user.

Most companies offer two or three types of licenses. The basic license is the one with the least number of features, and its prices range between $15 - $30 per month. More robust licenses usually start around $25 and up.

Can VoIP be hacked?

As with everything online, VoIP systems can be hacked. Most providers take steps against breaches of security through the encryption of voice data packets and robust security protocols. Our top pick, Nextiva, is a great example of a VoIP system with strong security certified by or compliant with various industry standards. We suggest you ask your VoIP provider what type of security your business needs.

Our Business Phone Systems Review Summed Up

Company NameThe Best
RingCentral Business Phone SystemKnown for its advanced technology
Nextiva Business Phone SystemFeatures savings up to 60% on phone system and service costs
Ooma Business Phone SystemsIdeal for unlimited calling in U.S. and Canada
Cisco Business Phone SystemKnown for its on-premises, cloud, and hybrid unified communications solutions
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