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Home > Small Business Phone Systems > Faqs > What is a Cloudbased Phone System

What is a business office phone system?

Internet phone systems use the internet to connect callers with one another. Using Voice over Internet Protocol (VoIP) technology, telecom providers like Ooma also allow business callers to make phone calls from iOS and Android devices using their company’s phone number.

VoIP phone systems give companies greater flexibility and mobility with their business lines compared to traditional business landline phones. Business phone systems go further with VoIP too, gaining important features you may be used to on your mobile phone, like text messaging, voicemail transcription and more.

Features of Business Phone Systems

One of the biggest features of cloud-based phone systems is a virtual receptionist. You can generate automated voice messages that direct your customers to different departments and locations through one central business phone number. Because business VoIP systems operate in the cloud, it means that your employees can handle business communications from office desk phones as well as mobile phones with ease.

Business phone systems using VoIP offer many other important communication features including:

  • Conference bridge

  • Call transfers

  • Modes for business hours and after hours

  • Voicemail

  • Caller-ID

  • Music on hold

  • Ring groups, and more.

Advantages of Cloud Phone Systems


Compared to the setup costs of traditional landline phones, cloud-based office phone systems are much more cost-effective. There’s no need for professional installation or IT personnel (many cloud systems are DIY), and you won’t have to worry about contracts.

Mobile Phone Enabled

With the rise of remote workers, traveling workers, and widespread smartphone use in general, mobility features are a huge selling point for VoIP systems.


Cloud-based technology also enables businesses to add extensions for new employees digitally as their company grows. For small and medium sized businesses, this is particularly beneficial because they don’t have to pay for an intrusive, expensive installation process.

Easy Setup

Cloud-based business phone systems often have a do-it-yourself setup. Usually all you need is a high-speed internet connection, access to your service’s user portal to manage settings and whatever hardware you are using, whether it’s a traditional business VoIP phone or smartphone.

Reliable Service

Having great call quality is a must for businesses. VoIP systems can intelligently prioritize voice traffic even during congested network conditions, so every call you make is crystal-clear despite bandwidth-intensive tasks.

Who Benefits Most from VoIP Office Systems?

VoIP can be the right choice for small businesses due to its low cost, simple setup, ease of use and the ability to scale quickly as business grows. IT and infrastructure for traditional phone systems can be expensive and time-consuming. Cloud-based systems are also ideal for small businesses because managers can add new employees and seamlessly use their main business phone number in multiple locations.

To learn more about cloud phone systems or business VoIP, check out our suite of solutions for small businesses and enterprise phone systems and watch the customer testimonial below.

Other related questions...

Customize Your Phone System

How many employees will use a phone?
Do you have internet ports (hardwired) everywhere you want a phone?

Do you need Wi-Fi cordless phones?

Do you need a separate conference phone?

Do you want to connect a physical fax machine?