Efficient communication enables businesses to enhance productivity, collaborate better, and provide seamless customer experiences. Phone systems, which serve as a vital link between internal teams and external stakeholders, can help an organization communicate efficiently and unlock these benefits.
In this article, we’ll explain what a cloud phone system is, its key features and benefits, and how it works. We’ll also go over the best options for small businesses, starting with Podium and how it makes customer communication faster and easier.
What Is a Cloud Phone System?
A cloud phone system is a type of communications system that allows businesses to make and receive calls over the internet instead of a traditional analog phone line.
Unlike traditional landline systems, which require physical hardware on-site, cloud phone systems are hosted and managed by a service provider off-site. This makes cloud phone systems a more flexible and cost-effective alternative.
Since cloud phone systems enable individuals to make and receive calls on multiple devices anywhere as long as they have a reliable connection to the internet, they are ideal for businesses with remote employees who aren’t tied to a single device in one place, like a desk phone at the office. By enabling employees to connect regardless of their location, cloud phone systems can help facilitate immediate decision-making, problem-solving, and the exchange of critical information, ultimately enhancing productivity.
A phone system can also be the first touchpoint for potential and existing customers so a cloud phone system that’s easy to use and makes communication more efficient can help instill confidence and enhance customer satisfaction. This can start building the foundation for strong, lasting relationships.
Let’s take a look at what features a cloud phone system typically offers.
4 Key Cloud Phone System Features
A cloud phone system can offer richer functionality than an analog phone. Below are some of the common and important features you can expect from the former.
Voicemail to Email Transcription
A cloud phone system can convert voicemail messages into audio files and send them to your email. These files can be accessed with more devices and have fewer storage restrictions than voicemails.
Call Routing and Forwarding
Most cloud phone systems allow you to route calls to a landline, a mobile phone, another VoIP phone, or even the same inbox as texts, social media messages, and other channels so you never miss a call. You can also forward missed calls to another number or a unified inbox to ensure you can quickly follow up. This is especially useful for calls after business hours or during the holidays.
Unified Communications
A cloud phone system can unify multiple communication channels, like your business phone system, voicemail, instant message or web chat, video conferencing, and faxing. A cloud phone system also likely offers integrations with CRM systems, email platforms, and other business applications to further streamline communication.
A cloud phone system can provide insights into call volume, call duration, conversations, and other metrics to help you monitor and improve your communication processes.
10 Best Cloud Phone System for Small Businesses
Looking for a cloud phone system to enhance productivity and customer satisfaction for your small business? Find an overview of the top 10 cloud phone systems below, including factors like cost, scalability, and ease of use to help you pick the best one for your unique business.
1. Podium
Ideal for: Small businesses looking to enhance their lead generation
Description: Podium is an all-in-one marketing and communication platform built for small businesses. Podium Phones is a secure VoIP-based system that enables businesses to make and receive phone calls using the Podium platform.
With Podium Phones, you can easily manage incoming calls, track missed calls, listen to voicemails, prompt customers to send a text message, and set call-forwarding rules all in one place. That’s why thousands of small businesses use Podium to grow their business, connect with customers, and simplify their operations.
Cost: Podium’s pricing plans start at $249 per month for up to 3 users.
Key features:
- One inbox for every customer message, including calls, texts, web chat messages, social media messages, and other channels
- View the call details, listen to the voicemail, and send a response right from your Podium Inbox
- Pre-record a message that prompts callers to send a text and receive SMS updates instead of waiting on the phone
- Users can connect with a desk phone, web-based phone, or through the Podium mobile app
2. RingCentral
Ideal for: Small businesses managing large customer call volumes
Description: RingCentral provides a comprehensive communications solution. It’s designed to empower mobile and distributed workforces to communicate, collaborate, and connect via any mode, any device, and any location.
Cost: RingCentral’s pricing plans start at $20 per user per month.
Key features:
- Route customers with interactive voice response (IVR) and call queues
- Monitor call quality, usage, device status, and setup alerts
- Offers HD voice calling, SMS, fax, messaging, HD video meetings, and cloud storage on a single app
3. Grasshopper
Ideal for: Entrepreneurs and small businesses that already have a phone service provider
Description: Grasshopper is a simple and easy-to-use virtual phone system designed for entrepreneurs and small businesses. Grasshopper has mobile and desktop apps that enable users to communicate from wherever they do business — in the office, at home, or on their cell.
Grasshopper offers both WiFi and VoIP Calling options, but primarily it uses your service provider’s cellular network for incoming and outgoing calls. You can pick a local, toll-free, or vanity phone number or use your current number and make unlimited calls and texts. You can also provide extensions for each department or employee on your team, transcribe voicemails, and send them via email.
Cost: Grasshopper’s pricing plans start at $28 per line per month.
Key features:
- Unlimited business calls and texts
- Forward calls to any device
- Unlimited extensions and custom greetings
- Voicemail and transcription delivered to your email
- Mobile apps for Android and iOS and desktop apps for Mac and Windows
4. Nextiva
Ideal for: Business owners who aren’t tech-savvy
Description: Designed to help small businesses build deeper connections with their customers, Nextiva combines communication channels — voice, video, collaboration, SMS, chat, and surveys — so employees can access the information they need at the right time.
Nextiva’s solutions are feature-rich, easy to set up, use, and manage, and are designed to scale with your business. You can scale up or down as needed and add applications, such as sales and service productivity tools, at any time.
Nextiva’s platform is built with security and integrity in mind. Its data centers are ISO/IEC 27001 certified, and NextOS is compliant with SOC 2.
Cost: Nextiva’s pricing plans start at $21.95 and $31.95 per user per month.
Key features:
- Combines multiple channels, including voice, video, collaboration, SMS, chat, and surveys
- Data centers are ISO/IEC 27001 certified and platform is SOC 2 compliant
- 40+ VoIP features, including advanced IVR with Conversational AI
5. 8×8 Series
Ideal for: Small businesses looking for an experience-communications-as-a-service platform (XCaaS)
Description: 8×8’s Experience Communications as a Service (XCaaS) provides a contact center, voice, video, chat, and APIs on one cloud-native platform to unify customer and employee experience. As the first and only true XCaaS platform in the market, it can be used to optimize omnichannel customer experiences and employee engagement for distributed workforces.
It provides a robust set of cloud PBX functions, including unlimited calling, SMS, automated call-attendant, call distribution, recording, three-way calling, visual voicemail, and fax.
Cost: Need to connect to sales to request a quote.
Key features:
- Consolidated contact center solution combines voice, chat, email, and social interaction channels
- Advanced analytics about the full spectrum of customer interactions
- CRM integrations and Open APIs for amplifying your contact center
6. Vonage Business Communications
Ideal for: Small businesses who value flexibility
Description: Vonage Business Communications is a unified communications platform designed to help small businesses work smarter. It enables businesses to seamlessly connect via voice, messaging, and video, virtually anywhere around the globe.
Vonage offers over 50 powerful VoIP features, including call routing, toll-free and local telephone numbers, business SMS and team messaging, and voice and video conferencing. It also offers a desktop and mobile app so you can manage your communications from any device, and collaborate from virtually anywhere. Plus, there are no annual contracts so you can cancel anytime.
Cost: Vonage Business’s pricing plans start at $19.99 per line per month.
Key features:
- 50+ voice and unified communication features
- Easy setup and management in one admin portal
- No annual contracts
7. OpenPhone
Ideal for: Small businesses who value configurability
Description: OpenPhone is a simple, collaborative cloud phone system for small businesses. This cloud-based calling and messaging solution is designed to be an intuitive, effective, and powerful solution for transforming the way your team manages customer and contact relationships.
With OpenPhone, you can automatically record calls, transcribe voicemails, and see call logs alongside texts in one conversation. You can also keep track of important contact details that matter to your business with custom properties and notes. You can also use shared numbers to call and text as a team, see your team’s conversations with contacts, and collaborate on them together.
Its deep integrations are ideal for startups and small businesses looking to harness productivity and elevate customer satisfaction to drive growth.
Cost: OpenPhone’s pricing plans start at $13 per user per month (if billed annually).
Key features:
- Shared numbers
- Custom properties and notes
- Deep integrations and customization options
8. Dialpad Ai Voice
Ideal for: Small businesses that value ease of use
Description: Dialpad Ai Voice is an intelligent business phone system designed to help teams stay productive from anywhere, on any device. Ai Voice offers one unified workspace so you can easily move between calls, videos, and messaging. It also uses built-in AI to take notes and transcribe calls for you, delivering post-call summaries and action items straight to your inbox. Other advanced features include an auto attendant, or virtual receptionist, that handles and directs calls in real time according to your settings as well as IVR, call queuing, recording, and analytics.
Finally, it integrates seamlessly with other business-critical applications like Google, Microsoft, Salesforce, and more.
Cost: Dialpad’s pricing plans start at $15 per user (if billed annually).
Key features:
- Dual-cloud architecture to ensure a high level of call quality
- A virtual receptionist that handles and directs calls in real time
- Integrations with Microsoft 365 and Google
9. Ooma Office
Ideal for: Small businesses that value scalability
Description: Ooma Office is an easy-to-adopt and affordable business VoIP solution for small businesses. With Ooma Office, you’ll get unlimited lines for your business, an easy do-it-yourself setup, and no contracts or long-term commitments. This makes it easy for a small business to scale its office phone system with Ooma as it grows.
What’s unique about Ooma is that customers can choose their hardware, including conventional analog phones, IP phones, virtual service through the Mobile and Desktop apps, or any combination of the three. Its advanced voice and collaboration features include a virtual receptionist, ring groups, call parking, and multi-site access.
Cost: Ooma Office’s pricing plans start at $19.95 per user per month.
Key features:
- Customer can choose their hardware
- Virtual receptionist
- Ring groups
- Call parking
- Multi-site access
10. MightyCall
Ideal for: Small businesses that value reliability
Description: MightyCall’s Call Center was built by a team with over 20 years of virtual telephony experience to be able to easily adapt to unique business workflows. With customizable settings, users can ensure the solution fits their unique needs and helps them simplify communications and drive revenue.
With MightyCall, you’ll get real-time feedback tools, dedicated supervisor workspaces, and detailed agent performance reports to make it easier to manage agents and analyze their performance. MightyCall also offers over 30 features and multi-level IVR systems to ensure customer inquiries are responded to effectively and promptly.
Cost: MightyCall’s pricing plans start at $15 per user per month (if billed annually).
Key features:
- In-depth performance analytics
- Efficient call management features
- Voicemail transcripts
- User-friendly interface
How Does a Cloud-Based Phone System Work?
Unlike traditional landline systems that rely on physical infrastructure, cloud-based phone systems leverage the power of the internet to transmit voice data. When a call is initiated, the user’s voice is digitized into packets of data. These packets are then transmitted via an internet connection to the service provider’s data center. From here, advanced software manages the routing and switching of the data, ensuring it reaches the intended recipient efficiently. If the call recipient is using a traditional landline or mobile phone, the digital data is converted back into analog format before reaching their device. This process allows for seamless, high-quality voice communication across various devices.
One of the key advantages of a cloud-based phone system is its flexibility. Since the entire system is hosted in the cloud, there’s no need for on-site hardware like a Private Branch Exchange (PBX). This means businesses can scale their communication infrastructure easily and adapt to changing needs without the hassle of physical installations.
Additionally, cloud-based systems support a wide range of devices, from desktop phones to mobile apps and softphones on computers. This versatility enables employees to make and receive calls from anywhere with an internet connection, facilitating remote work and improving overall accessibility.
Overall, cloud-based phone systems offer businesses a cost-effective, feature-rich, and adaptable solution for their communication needs in today’s fast-paced digital landscape.
4 Benefits of Cloud Phone Systems
There are several advantages to using a cloud phone system. The most important ones are detailed below.
1. Cost-Effective
Cloud phone systems often have lower upfront costs than traditional analog phone systems since they do not require expensive hardware or on-site storage. Additionally, they can offer more competitive calling rates and reduced maintenance expenses.
2. Scalability
Cloud phone systems can also easily scale to accommodate the needs of a growing business. Adding or removing lines or features is typically straightforward.
3. Flexibility and Mobility
Cloud phone systems offer the flexibility and mobility that are needed for remote work environments. Employees can use mobile apps or softphones to make and receive calls from anywhere with an internet connection.
4. Advanced Features and Integrations
Cloud phone systems typically offer a wide range of features such as voicemail to email, call forwarding, auto-attendant, call recording, and more that analog phones don’t. Cloud phone systems can also integrate with other business applications like Customer Relationship Management (CRM) software, email platforms, and other communication tools to streamline communications and workflows.
Take Your Calls to the Next Level With Podium
A cloud phone system can offer affordability, scalability, and other benefits. When evaluating phone systems, it’s important to select the one that offers the features you need at a price you can afford.
Podium’s Phones tool offers rich functionality at an affordable rate. Here are just some of the features that set Podium apart from other providers:
- One inbox: With Podium, you can route all calls to the same inbox as texts, social media messages, and other channels so you never miss a message again.
- Missed Calls & Voicemails – If you happen to miss an incoming call, you can easily view the call details, listen to the voicemail, and send a response right from your Podium Inbox. With these features all in one place, you can rest assured the customer will receive a timely response.
- Prompt Customers to Text – Additionally, you can pre-record a message that prompts callers to send a text and receive SMS updates instead of waiting on the phone. Providing this option helps prevent customers from feeling their time has been wasted trying to get in contact with your business.
- Missed Call Forwarding – You also have the option to forward missed calls to your Inbox, allowing you to seamlessly manage these interactions that would have otherwise been handled outside of Podium.
FAQs
Q: How Much Does a Cloud Phone System Cost?
A: The cost of a cloud phone system depends on several factors, including the size of your business, the features you require, and the terms of your contract. On average, the cost of a cloud phone system with basic functionality ranges from $15 to $50 per user per month.
Q: Are cloud-based phone systems reliable?
A: Like any internet-enabled application, cloud-based phone systems are reliable as long as you have a stable internet connection.
Q: What is an example of a cloud-based phone system?
A: Podium Phones is an example of a cloud-based phone system. With Podium Phones, you can route all calls to the same inbox as texts, social media messages, and other channels so you never miss a call again. Cloud-based phone systems like Podium have many benefits, including more advanced functionality and lower operating costs than traditional analog phones.
