A Guide to Cloud PBX for Small Business: The Best Tools in 2024

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A cloud-based business phone system is a modern, internet-powered solution to replace traditional on-premise phone setups. They offer small businesses greater flexibility, scalability, and cost savings. 

By hosting the PBX (Private Branch Exchange) in the cloud, businesses can manage calls, voicemails, and other communications seamlessly, from anywhere, with minimal hardware.

In this comprehensive guide, we'll explore all the essential details about cloud-based phone systems for small businesses. From enhanced call management to integrations with your core business tools, learn why switching to a cloud-based phone system can streamline operations and support growth. 

How Does a Cloud PBX System Work?

A cloud PBX system routes calls, texts, emails, and chats over the internet by transmitting voice to a cloud server, which instantly directs it to the right recipient. This replaces traditional on-premise systems, offering seamless integration with your existing business tools and delivering flexibility and reliable communication without delays.

What’s the difference between VoIP and cloud-based phone systems?

VoIP (Voice over Internet Protocol) is a technology that enables voice calls over the internet. A cloud-based phone system uses VoIP technology but offers additional features like call routing, integrations with business tools, and centralized management through a cloud platform. Essentially, VoIP is a part of cloud phone systems. 

Classic PBX vs. Cloud PBX 

Two main types of business phone systems are classic PBX and cloud PBX. Classic PBX systems are physical, on-premise systems that require hardware installation and maintenance. Cloud PBX systems are hosted in the cloud and accessed via internet. 

Here's a closer look at the pros and cons of each:

And here's a comparison of the key features and benefits of each phone system:

It’s clear that both classic and cloud PBX phone systems have distinct benefits and drawbacks. However, small businesses can gain a competitive edge by choosing a cloud PBX phone system.

Key Advantages of Cloud PBX for Small Businesses

Every small business needs effective communication systems to compete with big companies. Traditional phone systems, however, can be costly and rigid. 

Cloud PBX systems provide an affordable, flexible alternative, making it easier for small businesses to manage communications without the high costs.

Here are some of the key advantages of using a cloud PBX system for small companies.

1. Cost savings 

With a cloud PBX system, you don’t need to invest in expensive hardware and infrastructure. Instead, you pay for the service on a subscription, which is usually much more affordable than a traditional PBX system. 

Cloud PBX systems generally offer features like voicemail, call forwarding, and conference calling as part of the service, which typically costs extra with traditional PBX phone systems.

2. Flexibility and scalability 

A cloud PBX phone system lets you make and receive calls from multiple devices; you can easily place and answer cloud PBX calls via softphone apps on a smartphone or laptop. 

A cloud PBX works from anywhere in the world with a stable internet connection, making it ideal for remote workers and businesses with global teams. It also allows companies to increase or decrease the number of users and phone features at any time.

3. Advanced features 

Cloud PBX systems offer a range of advanced features that traditional phone systems can’t match. With tools like interactive voice response (IVR), call recording, call and voicemail transcription, and integrations with your business software, you can manage multiple communication tasks at once.  

61% of small businesses prioritize improving customer experiences, according to our Voice of SMBs Report, and these advanced features can help you enhance customer service, increase productivity, and streamline communication workflows.

4. Reliability

Cloud PBX systems offer high reliability with minimal downtime, thanks to cloud infrastructure and automatic backups. Unlike traditional setups, they’re less affected by power outages and hardware failures, ensuring continuous communication and dependable service for small businesses.

5. Access to customer insights

With tools like call tracking, powerful automations, CRM integrations, and real-time analytics, cloud PBX systems provide deeper insights into customer interactions. This allows businesses to personalize service—which is essential, as 51% of SMBs say that having customer details is essential for delivering effective experiences. 

By using these insights, small businesses can create more meaningful and efficient customer interactions, driving satisfaction and loyalty. 

What is the Best Phone System for a Small Business?

With so many cloud PBX solutions available for small businesses, finding the right one can feel overwhelming.

So, let's take a closer look at some of the top cloud PBX providers and see how they stack up against each other. 

Aircall

Aircall is the go-to cloud PBX solution for small businesses, offering an easy setup and no need for expensive hardware. Its seamless integration with CRM and helpdesk tools centralizes communication, automates call logging, and provides a full view of every customer interaction. 

With advanced analytics, call monitoring, and IVR, Aircall empowers small businesses to increase productivity and deliver exceptional customer service. It’s a flexible, scalable solution that grows with your business and makes your customer communications more efficient and effective.

• Features: Zero hardware required; softphone for desktop, Android, and iOS; real-time analytics and reporting; live activity feeds; an additional 50+ features (even in its Essentials package)

• Integrations: 100+ integrations, including HubSpot, Intercom, Slack, Pipedrive, Zendesk, and Zoho

• Pricing: From $30/month/user (annual billing)

Discover a powerful cloud phone system for small businesses that will help you improve customer interactions—without breaking the bank. Try Aircall for free.

Ooma

Ooma helps you personalize interactions with customer insights.

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Ooma offers small businesses over 100 advanced features, including a virtual receptionist, mobile app, video conferencing, and CRM integration. It’s easy to set up and ideal for remote teams, offering HD audio, low international rates, and tools to handle high call volumes. 

• Features: Virtual receptionist, mobile app, text messaging, video conferencing, call blocking

• Integrations: 13 integrations, including HubSpot, Microsoft Dynamics 365, Quickbooks, Salesforce, and Zoho

• Pricing: From $19.95/month/user

See our Ooma alternatives comparison for more information.

Grasshopper

Grasshopper is available on both desktop and mobile devices.

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Grasshopper simplifies communication for small businesses by separating personal and business calls. Its mobile and desktop apps allow you to take calls from anywhere, while features like call forwarding, extensions, business texting, and call blasting ensure you don’t miss any customer inquiries. 

• Features: Desktop and mobile apps, business texting, call forwarding, Wi-Fi calling, virtual receptionist, instant response

• Integrations: No integrations

• Pricing: From $14/month/user (annual billing)

See our Grasshopper alternatives comparison for more information, or check out an in-depth review of Grasshopper vs. Aircall.  

Dialpad

Dialpad’s AI features summarize your calls and automatically extract action items.

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Dialpad offers a straightforward cloud PBX solution for small businesses with features like voicemail, transcription, and easy setup with minimal hardware. It’s a convenient option for businesses looking for an all-in-one app that handles calls, texts, and virtual meetings on the go.

• Features: Unlimited calling, SMS, and MMS; call and voicemail transcription; video meetings; web and chat support

• Integrations: 70+ integrations, including Google Workspace, Microsoft Dynamics, Salesforce, Slack, Zendesk, and Zapier

• Pricing: From $15/month/user (annual billing)

See our Dialpad alternatives comparison for more information, or check out an in-depth review of Dialpad vs. Aircall.  

RingCentral

RingCentral gives you a clear overview of the status of all your rooms and devices.

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RingCentral offers features like video conferencing and customizable options to suit specific small business needs. It also provides mobile flexibility, allowing you to switch calls between devices effortlessly, and uses AI to automate tasks like note-taking and call routing. 

• Features: Visual voicemail, team messaging, business phone or toll-free numbers, document sharing, video meetings

• Integrations: 200+ integrations, including HubSpot, Microsoft Teams, Salesforce, and Zendesk

• Pricing: From $20/month/user (annual billing)

See our RingCentral alternatives comparison for more information, or check out an in-depth review of RingCentral vs. Aircall.  

How to Set Up a Cloud PBX System

With just a few steps, you can have a flexible, scalable communication solution up and running in no time. Here's a step-by-step guide to setting up a cloud PBX system for your small businesses, whether you’re starting from scratch or switching from another cloud phone system.

Step 1: Evaluate existing system

Before making any decisions, evaluate your existing phone system. Take note of the features and functionalities you currently use and the ones you would like in your new phone system. Doing this will help you determine the right cloud PBX or VoIP system that suits your business needs.

Step 2: Choose a provider

With so many service providers on the market, it's important to research options and find the one that best suits your business needs. We advise you to look for a provider that offers the features most relevant to your business, whether that be call forwarding and smart routing or AI call transcription and auto-attendants. 

Don't forget to consider factors like pricing and customer support when making your decision, and check past customer reviews and ratings to ensure you choose a reliable provider.

Step 3: Choose a plan

Once you've chosen a provider, select a plan that fits your budget and business needs. Most service providers offer a range of plans, from basic plans with limited features to more advanced plans with additional functionalities. Additionally, take advantage of any chance to try a plan and its features before committing—like Aircall’s 7-day free trial. 

Step 4: Prepare for the migration process 

Put a good plan in place for the migration process if you’re switching from another cloud based phone system. Determine the timeline and the resources that you need for migration. You may need to involve your IT team, so it's essential to inform them about the process and provide them with the necessary resources.

Step 5: Configure your settings

Once you've successfully set up your account, the next step is to configure the settings for your PBX phone system. Create business phone numbers and extensions for your employees, configure voicemail settings, and map out IVR flows. 

Don't forget to set up call forwarding, auto-attendants, and other features, depending on your provider and chosen plan. 

Step 6: Test your new system 

Before you switch over and roll out the new system, it's essential to test it to ensure that everything is working perfectly. Make test calls to check if all the features and functionalities work as expected, and be sure to properly train your employees.

Step 7: Switch over to the new system 

Once everything works correctly, it's time to switch to the new system. Divert your phone lines to the new system or port your phone numbers to the new provider.

Migrating to a cloud PBX or VoIP system doesn’t have to be a complicated process. Just follow a structured approach for a smooth transition. 

How Much Does a Cloud Phone System Cost?

Fortunately, cloud PBX systems are usually more affordable than traditional setups. Pricing varies by provider, features, number of users, and phone lines, with flexible plans available from providers like Aircall to suit small business needs.

Is a cloud PBX system a good investment?

A Total Economic Impact™ (TEI) study conducted by Forrester Consulting revealed the financial benefits of adopting Aircall’s cloud-based phone system. The study demonstrated a remarkable combined return on investment (ROI) of 373% over three years for companies that made the switch. 

With Aircall, businesses saw a 20% boost in productivity, agents saved 8 minutes per hour, and companies saw reduced costs on equipment, international calls, and maintenance. Its ease of use and improved call quality made Aircall a profitable choice for businesses looking to improve customer communications.

Why Choose Aircall for Your Small Business?

Aircall is the ideal cloud-based PBX solution for small businesses looking for reliability, efficiency, and flexibility. With an intuitive, user-friendly interface that requires minimal training, Aircall makes setup simple and scales easily as your business grows. 

Integrations with tools like Salesforce, Slack, and HubSpot streamline communication across platforms, while dynamic carrier switching ensures consistent call quality. Supported by a market-leading infrastructure and top-tier customer service, Aircall is the perfect choice if you’re looking to improve the way your small business communicates with customers.

Discover a powerful cloud phone system for small businesses that will help you improve customer interactions without breaking the bank. Try Aircall for free.

Published on November 8, 2024.