If you’re a small business owner looking to upgrade your phone solution, one option you will surely come across is a cloud telephony system. This is quickly becoming a popular choice for business owners and small firms thanks to the wide range of features and high-quality calling experience it can offer, as well as its flexibility and affordability for small and growing businesses.
So what should you be aware of if you’re ready to take the step from legacy, copper-based landlines to a modern cloud VoIP phone system?
What is Cloud Telephony for Small Business?
A cloud telephony system refers to an internet-based, or IP, solution where your provider hosts all the technology such as servers needed to route and manage calls. Instead of using traditional copper phone lines, voice calls are converted into digital format and sent via the same cables used for your broadband connection to a central server in the cloud.
What is Meant by ‘Cloud Based Phone System?’
Cloud communication may often be used as a synonym for cloud phone system, but it actually encompasses a wide range of services. For example, it may typically include video conferencing technology, which can offer a range of advantages when chatting with colleagues or customers. Instant messaging is also covered under this banner.
Often, these services, including voice, video and text connectivity that rely on third-party cloud providers, are grouped together as part of a unified communications platform. This allows employees to easily switch from one medium to another, resulting in higher productivity and better customer service.
Are Cloud Based Phones the Same as VoIP?
In many cases, cloud telephony is used interchangeably with VoIP (Voice over Internet Protocol) technology. However, while the two terms are very similar, they don’t always refer to the same thing, so it pays to be aware of the difference.
Essentially, VoIP refers to any phone system that uses a digital internet connection to make and receive calls. While in many cases, it does use cloud computing technology to do this, it’s not always a requirement. Some firms use an on-premise VoIP service where they manage all the infrastructure such as the servers themselves. However, this is often not suitable for small firms because of the cost and complexity involved.
With cloud services, on the other hand, this is all taken care of by the provider, leaving small firms free to run their own business without having to worry about phone connectivity or maintenance. Using a cloud telephony service – which you may see referred to as hosted VoIP – lets you turn any device with an internet connection and a microphone into a phone, as well as access a range of additional features.
Cloud Based Telephone Service vs Traditional Landlines
For end users, a cloud phone system should not look or function any differently to a traditional landline-based system. Employees will still be able to use handsets to make and receive calls in exactly the same way as before, while customers and other partners dialling in will not notice any change. However, business owners will find they have a much wider array of features and functionality to improve their communications and project a more professional image to customers and partners alike.
What is a Hosted Business Phone System?
A hosted business phone system refers to a service in which all call management, system management, call routing and features are performed over the internet by a provider, instead of being managed by hardware installed in your office. A business’s phones are connected to the system via broadband, permitting them to place and receive calls on desk phones, computers or mobile devices.
Different Types of Cloud-based Phone System for Small Business UK
From on-premise phone line solutions to modern hosted VoIP phones (otherwise known as a cloud phone system, there are an array of different phone line opportunities for businesses to consider:
Hosted VoIP
Hosted VoIP is a phone service used by businesses which allows them to make voice calls over the internet via cloud servers. VoIP technology allows businesses to make calls without using a traditional phone line. Because the provider manages all aspects of the telephony services, businesses also have no need to have on-site hardware, which means the system is very easy to set up. This makes it an attractive option for businesses that need a low-cost, flexible communication solution with the added bonus of supporting remote work.
Hosted PBX
Hosted PBX is an enhanced version of hosted VoIP. Rather than having a physical PBX box in the office, providers keep one in the cloud, giving you call-management features such as call routing, auto-attendants, voicemail-to-email and call extensions. It performs the same functions as a traditional PBX system, but it’s a more cost-effective and sophisticated way of maintaining hardware.
On-Premise Solutions
On-premise phone systems are the ones that have physical PBX hardware located at the business’s site. This aspect of on-premise phone systems does come with a higher initial investment and more technical expertise is required. Fully managing your phone system may sound appealing if your organisation has a stable technical infrastructure but the rigidity of this system also means it is not very useful for remote or hybrid work environments when compared to a cloud-centered system.
How Do You Set up a Cloud-based Phone System?
One major benefit of cloud telephony services is that, for the most part, they are plug-and-play. Because all the servers are hosted by the cloud provider, there’s no need for any on-site infrastructure beyond a good internet connection.
This means that small businesses will not have to wait around or pay for an engineer to visit in order to install their services. Instead, you simply select the hosted VoIP package, tariff and numbers you want and you’re all set – often completely online now!
However, the only thing you may need to do is check that your existing desk handsets are compatible with VoIP service. Most modern devices have this capability, but you may need to buy replacements if you’re still using outdated hardware. Alternatively, you can take advantage of ‘softphone’ capabilities, which let you access your phone service via a mobile or browser-based app on any suitable desktop, laptop or mobile device.
Hosted PBX Phones: How They Work
A Hosted PBX (Private Branch Exchange) phone system is where all call routing and management is done off-site in a cloud system instead of a converter box in your office. Rather than using a traditional PBX phone system in your office, your phones link via the Internet. When calls come in, the provider’s virtual servers manage the entire call connection process. Because the PBX is stationed off-site, small businesses don’t have to maintain or install bulky hardware. New users or additional lines are able to be added immediately through a simple dashboard. Hosted PBX phones essentially allow small businesses to use enterprise-grade communication tools without the need for excessive costs.
Additional Features Cloud Hosted Phone Systems Provide
Another key benefit of opting for hosted cloud telephone systems is that you’ll often have access to a wide range of features that would not be available using legacy services. This can let you create a full-fledged contact centre, connect remote and home workers to the same network, or gain deeper insight into the performance of your communications.
Some of the features you can expect to see as part of a good cloud telephony system include:
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Call flows (menus)
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Call forwarding
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Call queuing
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Video meetings
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Customised greetings (including text-to-speech)
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Voicemail to email
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Mobile and desktop applications
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Call reporting
These are usually very easy to set up and manage, with very little technical knowledge required. In many cases, a small business owner can simply log in to a web-based dashboard, from where they can control every aspect of their business communications.
The Benefits of Using a Cloud Phone Service
Cloud services offer numerous advantages over a landline-based phone system, in terms of cost, ease of use, reliability and features. What’s more, it ensures your business communications are fully futureproofed, as they will be the primary method of communications for the majority of firms once legacy landline networks are switched off during 2027.
Below is a detailed table of the benefits of cloud phone system for businesses:
| Type of Virtual Number | Description | Typical Use |
|---|---|---|
| Toll-free Numbers | UK 0800 and 0808 numbers where calls are charged to your business rather than the customer. | Commonly used by government services and customer support teams to encourage inbound calls. |
| Local Numbers | Numbers with specific UK area codes (e.g. 020 for London, 0121 for Birmingham) to create a local presence. | Ideal for businesses targeting specific regions or building trust with local customers. |
| Mobile Numbers | Mobile phone numbers that can also receive text messages (SMS). | Useful for businesses that want a more personal contact option and SMS communication with customers. |
When Does a Business Need a Cloud Phone System?
If you haven’t already investigated cloud calling solutions, you will need to do so sooner rather than later. But in addition to preparing for the legacy switch off, there are several other signs you could benefit from a hosted business phone system.
For instance, if you can answer yes to any of these questions, the chances are you should be thinking about moving beyond a traditional phone system.
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Will I need to add lines for a growing business?
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Will employees need to be contactable from multiple locations, such as when working in the field or from home?
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Are my current phone calling costs too high?
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Will my current phone system be shut down in 2027?
Why UK Small Businesses Are Using bOnline
Hosted IP voice systems are quick, flexible and economically friendly for small businesses in the UK since they remove large initial costs, aid remote and hybrid situations, and easily adjust to the growth of the business. bOnline are an award-winning VoIP phone line company, offering unique cloud phone solutions to small businesses across the UK.
Customers of bOnline have the advantage of reliable monthly charges without the demands of internal IT technology and in turn, businesses enjoy advanced, built-in, cost-effective calling options. Due to the on-site phone systems, hosted voice is more modern and flexible.
How Much Do Cloud Telephone Systems Cost?
The financial benefits are another key advantage of cloud calling. Adopting a hosted VoIP system can typically offer a small business significant cost savings when compared with legacy phone services. In many cases, a landline might set a small business back around £30 a month just for line rental, before the cost of calls is added on top of this.
With a hosted VoIP service from the likes of bOnline, on the other hand, you can expect to pay as little as £12.95 a month per user (plus VAT) for a full-featured cloud telephony service, which includes unlimited national and international calling and a whole host of additional functionality, from advanced call handling to sophisticated reporting tools. Many of these features would either be completely unavailable with legacy tools, or come with a hefty additional price tag.
How Do I Choose a Business Cloud Phone Provider?
There are a wide range of hosted telephony providers out there, from big names like BT, Virgin Media and bOnline to dedicated VoIP services and even large tech platforms such as Microsoft Teams. Therefore, it pays to do your research before making a decision.
Find out more about why small businesses can benefit from bOnline’s VoIP services.
While low costs are important, headline figures shouldn’t be your only consideration. You also need to look closely to make sure there aren’t any extra hidden fees, such as for extra features or maintenance charges that may be hidden in the small print. Customer service matters too – taking a look at online reviews can quickly tell you if a potential partner is falling short in this regard.
How Can I Move My Phone System to Cloud Telephony?
You shouldn’t have to do anything in order to switch your phone service to a cloud telephony solution, as this should all be taken care of by your provider. Because all the infrastructure is hosted in the cloud, there’s usually no need for on-site installation work or an engineer visit, and you can typically get set up in a matter of minutes.
All you have to do is select the package and tariff you want and plug in your IP-compatible handsets, or use a web browser or app to access the telephone system. If you want to keep your existing number, this is also a very simple process – just let your provider know you’d like to port over numbers when you sign up and they’ll take care of it for you.
What Should You Ask Your Cloud Telephony Service Provider?
As well as questions about extra fees, cancellation procedures and installation processes, there are a few other questions that you should get clear answers to before you sign up to a service. Making sure you’re not locked into a lengthy contract with an unsuitable provider is essential, so be sure you know exactly how long you’re signing up for and what fees will apply should you have to leave.
Reliability is another important factor. Make sure your provider can be open about their performance in this regard and determine if the guarantees they provide meet the needs of your business. A few minutes of downtime may not sound like much, but it could be very costly for some small firms. Ask questions about what contingencies are in place should there be any service disruption and what compensation you may be entitled to for outages.
Making the right choice for your business telephony should set you up well for many years to come. For small firms, a cloud-based phone system will allow you to deliver better customer service and more flexibility for your employees, all at a monthly cost that works for you.
