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You're running a small business. What are the best cloud-based phone systems to help you grow?

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If you're running a small business, you know how important it is to communicate effectively with your customers, suppliers, and team members. You also know how expensive and complicated traditional phone systems can be, especially if you need to scale up or down, add new features, or integrate with other tools. That's why cloud-based phone systems are a great option for small businesses. They offer flexibility, affordability, and functionality that can help you grow your business and improve your customer service. In this article, we'll explain what cloud-based phone systems are, how they work, and what are the best ones for small businesses.

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1 What are cloud-based phone systems?

Cloud-based phone systems are phone services that use the internet instead of physical wires or hardware to make and receive calls. They are also known as VoIP (Voice over Internet Protocol) or internet telephony. With cloud-based phone systems, you can use any device that has an internet connection, such as a smartphone, a tablet, a laptop, or a desktop, to access your phone number and features. You don't need to install or maintain any equipment, as everything is hosted and managed by a service provider in the cloud.

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USMAN BIN KHALID

Senior Business Consultant | Banking, Telecom, Audit, Credit, Finance, AI Professional
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Grow your small business with the right cloud phone system! RingCentral shines for all-around communication, Nextiva scales with you, Zoom Phone integrates seamlessly for video-heavy teams, Grasshopper keeps solopreneurs connected, and Ooma Office offers budget-friendly local calling. Choose the one that empowers your team and fuels your success!

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Anuradha (Anu) Udunuwara, FIET, FBCS

Telecom & Tech Thought Leader, Trusted Advisor, Consultant, Researcher, Trainer, and Author with 21+ Years of Industry Experience | Invited Speaker at 70+ Int'l Conferences
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The key benefits include scalability, cost-efficiency, and advanced features like call forwarding and voicemail transcription. Integration capabilities with CRM systems and other business tools, as well as features for business continuity like disaster recovery, are also good features. Furthermore, the importance of regulatory compliance, security measures, and the availability of technical support and maintenance services also need to be considered.

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2 How do cloud-based phone systems work?

Cloud-based phone systems work by converting your voice into digital packets that are transmitted over the internet to the recipient. The recipient can be another cloud-based phone user, a landline, or a mobile phone. The service provider handles the routing and switching of the calls, as well as the encryption and security of the data. You can access your cloud-based phone system through a web browser, a mobile app, or a softphone (a software that mimics a phone on your computer). You can also use a VoIP adapter or a VoIP phone to connect your existing phone to the internet.

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Anuradha (Anu) Udunuwara, FIET, FBCS

Telecom & Tech Thought Leader, Trusted Advisor, Consultant, Researcher, Trainer, and Author with 21+ Years of Industry Experience | Invited Speaker at 70+ Int'l Conferences
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Cloud-based phone systems convert voice into digital packets for transmission over an IP network, generally the Internet. The service provider manages call routing, switching, encryption, and security. Users access the system via web browsers, mobile apps, or softphones. VoIP adapters (IADs) can connect traditional phones too to the internet. Quality of Service ensures call clarity, while integration with business applications enhances productivity. Scalability, cost savings, disaster recovery, regulatory compliance, and support services are additional benefits.

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3 What are the benefits of cloud-based phone systems for small businesses?

Cloud-based phone systems offer many benefits for small businesses, such as cost savings on phone bills, equipment, and installation. You don't need to invest in hardware or infrastructure and you can avoid long-term contracts and hidden fees. Additionally, you can easily scale up or down according to your needs, and access a range of features to enhance your communication and productivity. Moreover, you can use your cloud-based phone system from anywhere with an internet connection, using any device that you prefer. You can also set up call routing and auto-attendant to direct your calls to the right person or department. All of this is taken care of by the service provider, who will also handle the updates and maintenance.

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Anuradha (Anu) Udunuwara, FIET, FBCS

Telecom & Tech Thought Leader, Trusted Advisor, Consultant, Researcher, Trainer, and Author with 21+ Years of Industry Experience | Invited Speaker at 70+ Int'l Conferences
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Cloud-based phone systems for small businesses also offer enhanced flexibility and mobility, enabling remote work and adaptability. Integration with CRM software improves customer interactions. Advanced features like voicemail-to-email transcription and call analytics provide valuable insights. Built-in redundancy ensures reliability and minimizes downtime. Collaboration tools like conference calling foster teamwork.

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4 What are the challenges of cloud-based phone systems for small businesses?

Cloud-based phone systems come with certain challenges that should be taken into consideration. Reliability is a major concern, as you depend on the internet and the service provider for your phone service. In case of an emergency, such as a power outage or a network issue, you may experience dropped calls, poor sound quality, or no service at all. Therefore, it is important to have a backup plan, such as a mobile phone, landline, or battery pack. Security is another important factor to consider when using cloud-based phone systems. You need to make sure your data and communication are adequately protected by encryption, authentication, compliance, and backup measures. Additionally, compatibility is key; you need to ensure that your devices, software, and internet connection meet the minimum requirements for speed, bandwidth, and quality of the system. Upgrading or replacing some of your equipment or services may be necessary to guarantee optimal performance and functionality of your cloud-based phone system.

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Anuradha (Anu) Udunuwara, FIET, FBCS

Telecom & Tech Thought Leader, Trusted Advisor, Consultant, Researcher, Trainer, and Author with 21+ Years of Industry Experience | Invited Speaker at 70+ Int'l Conferences
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Other challenges include potential latency and network congestion causing delays or dropped calls. Limited customization options may restrict tailoring the system to specific needs or integrating with third-party apps. Dependency on third-party providers reduces control over maintenance and updates. Regulatory compliance, like data privacy laws, can be complex. Ongoing costs such as subscription fees can impact cost-effectiveness.

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5 What are the best cloud-based phone systems for small businesses?

When choosing a cloud-based phone system, you need to consider your budget, needs, and preferences. For budgeting, find out the upfront and ongoing costs, as well as how you're charged for calls, users, features, and support. For needs, determine the number of users, phone numbers, and devices you need and the features you want. Consider your preferences such as ease of use, reliability and security, sound quality, customer service, flexibility, scalability, and integration with other tools. Popular and reputable cloud-based phone systems for small businesses include RingCentral, Grasshopper, and Nextiva. Each offers various features at different pricing plans. RingCentral has four plans ranging from $19.99 to $49.99 per user per month; Grasshopper has three plans ranging from $26 to $80 per month; and Nextiva has four plans ranging from $18.95 to $57.95 per user per month. Doing your research and comparing different options can help you find the best cloud-based phone system for your business.

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6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Talal Anwar

Application Architect at IBM | Integration Architect | IBM & OpenGroup Master Certified Architect | IBM ACE/MQ | IBM API Connect | IBM CloudPaks | Redhat OpenShift
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For a small business aiming to grow, consider cloud-based phone systems that offer scalability, flexibility, and cost-effectiveness: 1. **RingCentral:** Provides a comprehensive communication platform with features like voice, video, messaging, and collaboration tools suitable for expanding businesses. 2. **Grasshopper:** Ideal for small businesses, offering virtual phone numbers, voicemail, and call forwarding, promoting a professional image. 3. **Dialpad:** A cloud-based business phone system with AI-powered features, supporting voice, video, and messaging, facilitating seamless communication as your business expands. 4. **8x8:** Offers a range of communication services, including voice, video conferencing, and contact center solution

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Anuradha (Anu) Udunuwara, FIET, FBCS

Telecom & Tech Thought Leader, Trusted Advisor, Consultant, Researcher, Trainer, and Author with 21+ Years of Industry Experience | Invited Speaker at 70+ Int'l Conferences
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Consider reliability, network infrastructure, and uptime track record. Evaluate user reviews for insights on satisfaction. Assess provider's data security, compliance, and backup policies.

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You're running a small business. What are the best cloud-based phone systems to help you grow?

1

2

3

4

5

6

1 What are cloud-based phone systems?

2 How do cloud-based phone systems work?

3 What are the benefits of cloud-based phone systems for small businesses?

4 What are the challenges of cloud-based phone systems for small businesses?

5 What are the best cloud-based phone systems for small businesses?

6 Here’s what else to consider

Telecommunications Systems

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You're running a small business. What are the best cloud-based phone systems to help you grow?

1

2

3

4

5

6

1 What are cloud-based phone systems?

2 How do cloud-based phone systems work?

3 What are the benefits of cloud-based phone systems for small businesses?

4 What are the challenges of cloud-based phone systems for small businesses?

5 What are the best cloud-based phone systems for small businesses?

6 Here’s what else to consider

Telecommunications Systems

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