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How do Business Phone Systems Work?

Sep 1, 2019 / CT Solutions

When starting a business, one of the main concerns maybe how to communicate effectively internally and externally. 

First, you should understand what a business phone system is. This is 

With the array of phone systems in place, it might be hard to choose one or the other. Questions you will want to ask yourself are:

  1. How does a business phone system work?

  2. What do they do?

  3. Which one is right for your business’ needs?
    Initially, there are four types of business phone systems that are used or have been used to communicate with customers.

    • Legacy PBX Phone system, which was initially used from the 1980s until the beginning of the 2000s.

    • IP Business Phone Systems that have been popular since 1995.

    • Hosted Business Phone Systems which started being used in 2010 and are still being used today.

    • The cloud-based business phone system.

The Legacy PBX Phone Systems

had its rise in popularity for around 20 years, beginning in the 1980s. This where business communications started. 

Industries began to flourish and the necessities of improving and expanding their range of business communication became apparent and thus needed to find better and more efficient ways to communicate within the company and with any external person whether it be a client, investor or provider. 

 For this office phone system to function properly it requires you the set of hardware and software like a computer with memory, a switchboard and a telephone trunk. 

Because this type of system requires a physical hardware box it is recommended for offices who have at least 50 employees to make it work. 

The biggest advantage of this type of business phone system is

  1. Simple to operate

    Managing calls is a task anyone can handle. When using this system, normally a secretary or receptionist takes the call can later transfer it to whoever the caller needs to be communicated with.

  2. It is cost-effective

    Part of the industrial revolution was looking for accessible prices for wonderful commodities. And business phone services wanted to provide just that, a better simpler and more affordable option to improve internal and external communication within any business.

  3. Variety of Elements

    You can enjoy call waiting, call forwarding, multiple line transferring and mailboxes, call recording and voicemail all in one. As a business, these characteristics can greatly come in handy.

The main disadvantages of this system are:

  1. Waiting to Solve a Problem

    The most complained about drawback to this system is that if you ever run into an issue it takes time to fix it. You must wait for a specialist to go to your office to fix the issue and that can take time, leaving you uncommunicated.

  2. And last, this system seems to be slowly disappearing

    Other newer, simpler and even more affordable systems are coming out and making the headlines.

IP Based business phone system (1995s – present)

Technology is constantly improving and along with that are the business phone systems. 

IP stands for Internet Protocol. It is here when the use of the internet began to emerge in our communication systems. 

Although presented in 1995, this business phone system is still being used to this day.

How does it work?

The biggest difference between IP PBX and IP network systems is the source. The first uses VOIP technology and the second uses the internet to communicate. 

The main advantages of using an internet-based system are

  1. Less equipment

    With the IP PBX system, you need every user to have their own phone and number to be able to transfer calls and have multiple lines.
    With the IP phone system, you can make multiple calls at once, have many users and not require any additional equipment.

  2. More affordable

    The previous advantage leads to the fact that you don’t have to spend any extra money to enhance the features of the phone system you currently have in place. 

    There are other miscellaneous calls that can also be avoided like long-distance or external calls because there is almost no extra charge.

  3. It is completely wireless

    When you work with a wireless system, there are many advantages. First, you avoid the costs of cabling which can be expensive and can get damaged and the workspace tends to look cleaner, more sophisticated and up to date.

On the downside, the main disadvantage of this system is how dependent you are to the internet. And as we all know, the internet is not always 100% reliable.

If there is any type of weather emergency this can affect the entire company’s communication system.

Hosted business phone system (2010 – today)

Once the IP phone system took place, businesses all over the US were content and excited. Although this was true, it was still in its beginning stages and needed certain improvements.

Businesses were still looking to improve the cost of these business phone systems and also wanted it to be more efficient. 

Taking this into consideration, many self-made businesses began to offer companies what the other business phone services were lacking. Offering the same service for better prices and to both large and small businesses alike. 

There are important advantages for both large and small businesses. 

The main one can is considered the fact that now your internal team can be a lot more effective. Now that communication is taken care of by your supplier, employees can handle other tasks that will benefit your organization like sales, promotions, finances and customer care. 

Another huge benefit is the costs involved. Cost-cutting has been and will always be one of the biggest advantages of these new business phone services. Although in the long run it is much cheaper, installation and maintenance will require a certain cost that you must take into account. 

For many clients the question of whether this system is safe. Clients ask questions like can my phone line get tapped? How can aI make sure all my calls are private and for now one to access them. These are questions you must ask your provider, get reassurance that you are choosing a trustworthy source. 

Last but most important, and currently most popular.

Cloud-based business phone system (2015 – today)

The Cloud-based business phone system also known as VOIP phone system, similar to the IP telephone system, it relies on the internet to work. This new system came up as a solution for a better, faster more convenient form of business communication. 

All of the data is stored in a cloud for everyone to have access, so here you do not depend on hardware to store information, in turn avoiding hardware costs. 

Your most important asset is your internet service provider. Having good, reliable internet will probably be the most important commodity you will need.     

You can use this service with mobile phones, VoIP phones, landlines or softphones. Think of this as calling someone on skype. You are using your smartphone or monitor to communicate with someone on the other side with the same medium of communication, using the internet.

Whatever your business needs. CT Solutions can provide you what your office and clients need. 

We offer you business cloud communications in the Atlanta area. 

Call us today for more information.

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