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Virtual PBX vs. Traditional: A Small Business Phone System Comparison

Ring Central Blog


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268058844_e6266319ea_b With the economy as uncertain as it is, everyone is looking for ways to cut spending and improve their bottom line. Diane Meyers, directing analyst for Infonetics Research, has found that one way companies are cutting costs is by turning to VoIP and virtual PBX for their business communications:

Demand for residential and business VoIP services continues to grow through the economic downturn because of the cost savings they provide. As a result, in 2008 the VoIP services market had healthy growth of 33% to $30.8 billion.

This is a trend even small businesses can jump on. An online PBX is not only cheaper than a traditional PBX – it is maintained by your service provider and may be adjusted on your provider’s website. And because it a virtual PBX doesn’t require any hardware, it doesn’t matter that your vast entrepreneurial empire is currently limited to the spare room over the garage.

If you have a team of like-minded individuals helping you build your business, a hosted phone system can be even more useful, since it allows customer calls to be routed to any member of your team – no matter where they are. So if calls need to go to your programmer in Seattle, your marketing whiz in New York, and still reach you at the coffee shop down the street, a VoIP system can route them as if you were all in the same building.

Finally, your internet phone service is maintained by your provider. Upgrades and improvements happen transparently, without you needing to lift a finger. This means your communications system stays up to date, no matter what new technologies or tools pop up in the future.

Photo credits: Apreche, pasotraspaso

Originally published Jun 08, 2009, updated May 23, 2021

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