Guide to choosing a cloud phone system for small business

by Chris Yates, Principal Content Strategist and Mobility Editor, AT&T

Small businesses are moving away from traditional landlines and toward more flexible options. A cloud phone system for small business is a future-ready solution. These systems provide reliability, advanced features, and scalability without costly hardware expenses.

Cloud phone systems for small businesses often come standard with a host of benefits that can be integrated into your business systems:

  • Cloud-based phone systems transmit data over the internet instead of through copper phone lines.
  • Additional features, like cloud PBX, CCaaS, and UCaaS can be easily integrated into cloud phone systems.
  • Many solutions include reduced costs, increased reliability, and additional features compared to traditional phone systems.

If you’re considering an upgrade or searching for the best communications platform, this guide will help you understand your options and how to choose the right fit.

What is a cloud-based phone system?

A cloud-based phone system is a business communications service that uses the internet instead of physical phone lines. Unlike legacy systems that use copper wires and on-premises hardware, a cloud phone system for small business operates using Voice over Internet Protocol (VoIP) services. Your calls, voicemails, and other communications are managed through secure servers hosted in the cloud.

This approach eliminates the need for on-site Private Branch Exchange (PBX) boxes or analog phones connected to Plain Old Telephone Service (POTS) lines. Instead, you access your phone system from anywhere with a reliable internet connection. Employees can make and receive business calls using desk phones, computers, or even mobile devices.

[Read more: Cloud-based phone systems vs. on on-premises systems]

Types of cloud business phone systems and networks

Understanding the different types of cloud phone solutions helps you match technology to business goals. VoIP is commonly used in cloud phone systems for small businesses.

It converts voice calls into digital signals and transmits them via the internet to nearly any internet-connected device. Cloud solutions for voice can enable your employees to make calls from desk phones, mobile phones, laptops, and tablets as part of their duties.

VoIP can also be paired with cloud PBX, a virtual phone system that routes calls to the right users or departments. Cloud PBX offers advanced features like auto-attendants, call forwarding, and voicemail-to-email that can be managed via an online portal.

Options also exist for you to connect your existing phones and telecoms to the cloud instead of remaining on POTS systems. Analog Telephone Adapter (ATA) devices, for example, are often used to connect these devices to the cloud when upgrading legacy infrastructure.

And lastly, with VoIP and other cloud-delivered solutions, you can implement communications systems that benefit both your employees and customers. Contact Center as a Service (CCaaS) for your customers and Unified Communications as a Service (UCaaS) for your employees combine calling, messaging, video, and collaboration into a single platform.

These services are ideal for businesses wanting to streamline communication and deliver great customer service.

Benefits of cloud business phone systems for small businesses

Switching to a cloud-based phone system brings many advantages. Though there is an initial transition period, cost, and growing pains associated with any change, your business can experience:

Reduced costs

Cloud systems eliminate the need for expensive on-site PBX hardware and analog phone lines. There are no maintenance fees for physical equipment, and service plans scale as your needs change.

You can also roll your existing devices into your cloud-delivered plan with the right adapters and service provider, reducing the need for hardware changes both now and in the future.

Flexibility and scalability

Cloud phone systems enable hybrid and remote work and allow you to add or remove users, devices, or locations with a few clicks. When calling via the cloud instead of POTS lines, your employees are using the same telephone number, systems, and interfaces regardless of their physical location or which hardware they choose to utilize.

Plus, as you add or subtract employees, your communications systems can grow with you without expensive infrastructure purchases.

Reliable connections

Modern cloud phone platforms are built for uptime and call quality. Advanced failover and routing features help ensure you stay connected even if the office internet goes down. These failover systems and automatic routing procedures can make your phone communications less susceptible to outages due to weather or construction as well, keeping you both continuously connected and not liable for expensive POTS line repair jobs.

Smart features

Cloud-based phone systems for small business enable AI-powered tools like auto-attendants, voicemail-to-email, call recording, and even virtual assistants. These features streamline workflows and improve customer service whereas traditional phone systems may rely on employee inputs to perform these functions.

Simplified management

You can manage users, devices, and features from a simple web portal, with updates occurring in real time. This pairs well with cloud systems’ scalability, allowing you to add, subtract, or modify users with ease and get them plugged into all your communications systems quickly.

Improved customer and partner relations

Cloud systems help you respond faster and collaborate better, whether you’re serving customers or working with key stakeholders. Their unified, omnichannel capabilities create a communications ecosystem that functions more efficiently than standalone telephones.

 While transitioning from a traditional phone system may feel like a big task, an experienced cloud phone system provider can help you make the switch more easily.

Choosing the best cloud-based phone system for small business

Finding the right cloud-delivered solution means balancing features, cost, and compatibility with your business needs. Start by assessing how many users need access and the typical call volume. Some systems are better suited for high call volumes or specific call routing needs.

Within that scope, also consider how many concurrent calls you need and whether you require support for analog devices (like fax machines or alarm lines). Cloud solutions can be designed to handle various line types, including POTS line replacement with ATA devices.

Once you’ve figured out the scope of your cloud solution, check the compatibility of your existing phones, computers, or mobile devices. Some systems work only with specific hardware, while others offer softphone apps for use on connected devices. To get these devices transitioned quickly, look for systems that are easy to deploy and require minimal downtime.

Many cloud phone providers offer plug-and-play installation or guided onboarding to make the transition smooth. And when assessing your transition period, consider the level of customer support and service you need. Reliable support can be crucial, especially during setup or if issues arise.

When it comes to the cost of your new system, evaluate both upfront costs (like hardware and installation) and ongoing expenses (monthly service fees, user licenses, etc.). Optimized cloud phone systems for small business often offer predictable, scalable pricing.

They also list out the cost and availability of certain features. List and price the must-have features like call forwarding, voicemail, auto-attendant, and integration with existing tools. Consider whether you might need advanced options like analytics or video conferencing as your business grows.

Lastly, consider your provider’s quality of service and security compliance measures. Check your provider’s uptime guarantees and voice quality standards. Good performance often depends on your internet connection, so a reliable Internet Service Provider (ISP) is essential. Ask about security measures like automatic encryption and regulatory compliance supports to keep your data for your eyes only.

Cloud phone systems for your small business

Choosing the right cloud-based phone system transforms how your business communicates and grows. Cloud solutions offer flexible setup, cost-effective pricing, advanced features, and reliable performance. You can replace outdated landlines and support evolving business needs with a future-ready platform.

AT&T Business is a reliable provider of cloud phone systems for small businesses. Our solutions align with your goals and help you stay connected, competitive, and focused on your customer.

  • AT&T Business Voice is a simple, all-in-one POTS line replacement solution that converts traditional analog landline signals to Internet Protocol (IP), enabling VoIP connectivity while supporting critical business phone line systems. It integrates seamlessly with existing analog infrastructure, supports new service installations, and operates over any broadband or wireless connection, making it an ideal POTS line replacement. 
  • AT&T Phone for Business is a VoIP-based solution that delivers reliable digital voice service over AT&T’s secure IP network using business internet or fiber, offering over 30 advanced calling features and seamless compatibility with existing analog phones, making it a cost-effective and easy-to-deploy upgrade for small businesses transitioning from traditional landlines. 
  • AT&T Office@Hand is a cloud-based PBX phone and UCaaS solution that helps small businesses modernize their communications by turning devices into full-featured business phones, offering tools like auto-attendants, voicemail-to-email, and call routing, without the need for complex hardware, making it ideal for remote work, scalability, and improved customer service. 

Learn more about our Voice and Collaboration solutions and how they can help give you the confidence in your phone systems you need to grow your operation with fast, reliable, and secure phone service. To connect with an expert who knows business, contact your AT&T Business representative. 

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