How to Decide Which VoIP Phone System is Best for Your Business?

Are you looking to upgrade your phone system but don’t know which VoIP system to choose? The decision can be difficult when deciding between a traditional system, an on-premises system, and a cloud-based VoIP system.

Phone System #1: Traditional System

A traditional system can be a great first start for many businesses looking to upgrade their phone system. These can use copper wires or SIP trunks to make phone calls.  A traditional system gives businesses all the basic features, such as access from the office, voicemail capabilities, automated messages, and call queues. However, this phone system is premise based and limits the ability to work remotely.  It also does not have modern things like video chat and instant messaging. 

Phone System #2: On-Premises VoIP System

The next type of VoIP phone system that should be considered is an on-premises VoIP system. An on-premises phone system has all of the equipment, including the hardware, located in-house. This type of VoIP system requires a significant upfront cost to put the system in, making it not feasible for many small businesses. Once the system is installed, you will be tasked with repairs and maintenance, but all of the large capital expenditures have already been made and you will just need to pay monthly fees to run the system. An advantage of this system is that you control the programs and don’t have to rely on internet connection, however the obvious disadvantage is the significant upfront cost of implementation. 

Phone System #3: Cloud-Based VoIP System

The third type of VoIP system that you need to analyze is a cloud-based VoIP system. It’s no secret that many business functions are being moved to the cloud, including phone systems. In a cloud-based VoIP system, there are no significant upfront costs or maintenance costs since the cloud-based VoIP provider will take care of that. The cloud allows businesses to grow with more ease and pay on a per-user basis as employees are added. However, there is no control over the hardware and if the system crashes, you have to wait until your provider can fix it. 

The Final Decision

A traditional VoIP system is generally utilized by small businesses wanting the competitive advantage of a high-level phone system that doesn’t break the budget and gives employees remote connectivity capabilities. An on-premises VoIP system is an option many businesses go for when they don’t want to use the cloud, but still want control over their phone system without relying on the internet. Larger businesses tend to lean towards this option because they have the capital available to put into the initial upfront configuration. Finally, a cloud-based VoIP system attracts growing businesses that don’t have a huge budget to hire IT staff to maintain the hardware and want all the features to be accessible from multiple locations. Overall, choosing a VoIP system can be difficult, which is why Utel USA is here to help. Utel USA can help you make an informed decision based on your business needs and pair you up with the right provider.


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