business phone tools

Small Business Phone Service - why they make sense


It no longer makes sense for an SMB not to use a small business phone service. There are so many reasons to use a VoIP business phone service, that it is difficult to understand why there are still SMBs buying multi line phone systems and PBXs.

For small business operators the two main issues are usually cost and functionality i.e. does it do what they want it to do?

1. Cost: it's the responsibility of every SMB to do the sums and compare phone services. Inevitably the cost of using a VoIP business phone service will be substantially less than continued use of services from a local phone company. The phone companies are most competitive in the residential market, where they can achieve economies of scale from offering a plain vanilla service to millions of customers. On the other hand, in the SMB space they are completely outclassed by the more agile providers of virtual PBX solutions who can deliver a range of services they cannot match.

2. Functionality: From reviewing the services provided by companies such as RingCentral and Nextiva, it will quickly become apparent that they are not simply offering a cheap business phone service, but also providing a comprehensive range of services specifically targeting the small business market.

By using a VoIP small business phone service, an SMB can access all the features and functionality available to a Fortune 500 company with the latest premise based phone systems. They level the competitive playing field and eliminate one of the main advantages enjoyed by big business in dominating SMBs.


In addition to the issues of cost and functionality there are other considerations responsible for the increasing uptake of hosted VoIP PBX solutions.

Technology: business phone technology has undergone more radical change over the last five years than it did in the previous hundred years, and the pace is not slowing. Not only have phone systems evolved from circuit boards into software applications, but voice and data have merged to open up a realm of expanding convergent applications. It's also clear that video is imminently about to become an ubiquitous application that will accompany voice and other IP based services. Given the pace of these developments it makes more sense for an SMB to rent rather than buy and avoid getting locked into a business phone system that could be rapidly superseded.

Entanglement: premise based VoIP phone systems require care and maintenance to continue operating as they should. The problem for an SMB is that these responsibilities can become a major distraction. Rather than becoming entangled, it's smarter for a small business owner to have their phone system managed by a team of experts at a remote hosting facility.

Complimentary Services: Hosted small business phone services offer standard and optional extras that an SMB can use if and when required. They may include: fax, voice mail, call recording, conferencing, toll free numbers, ACD, contact center ... features.

Flexibility: providers such as RingCentral and Nextiva offer great flexility to there customers. They don't even require a signed contract. In a world where the unexpected is normal, it's a great advantage to have flexibility to respond immediately, especially if there are no penalties.


Related Articles

Buying a Used Phone System - the Pros and Cons and also:

VoIP Small Business Solution - is the timing right?

Top of Small Business Phone Service - why they make sense

Related Articles
Small Business Phone Service

Business Phone and Internet Service - the pros and cons
Does a packaged business phone and Internet service make good sense?

Which VoIP Business Phone Service? By using a VoIP business phone service most SMBs will achieve significant savings over alternatives such as installing a multi line phone system or PBX.

VoIP Virtual PBX - the SMB phone system VoIP virtual PBX services are becoming the default small business phone solution. They provide equivalent or better features than a premise based system and cost less.

Virtual PBX VoIP Solutions: Pros and Cons Considerations when comparing virtual small business phone services.

SIP Trunking Services
SIP trunking services extend the benefits of VoIP beyond the LAN, enabling SMBs to by-pass the public telephone network and slash call costs.

Nextiva Small Business Phone Service
Nextiva specializes in providing small business VoIP phone services. SMBs are migrating to these services to slash their phone bills and access improved phone services.

Packet8 Phone Service
The Packet8 phone service is a very price competitive option for residential users, but it is probably not the best option for small business.

Start Your Free Trial Today

Privacy Policy

Copyright© 2008 Business-Phone-Tools.com
All Rights Reserved