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

What is a small 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 allow business callers to make phone calls from iOS and Android devices using their company’s phone number.

As a result, companies get greater flexibility and mobility with their business line that they simply can’t find with traditional business landline phones. Even better, you still get all of the features you enjoy from mobile phones - calls, voicemails, messages, and more - but at a fraction of the cost.

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 a professional installation or IT personnel (many cloud systems are DIY), and often no contract or monthly line charge.

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, ensuring that every call you make is crystal-clear despite bandwidth-intensive tasks.

Who Benefits Most from VoIP Office Systems?

Many small businesses have turned to VoIP due to their low cost, easy setup, and ability to scale quickly as their 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 use their main business phone number for multiple locations through their mobile devices seamlessly.

To learn more about cloud phone systems or business VoIP, check out our suite of solutions for small businesses and enterprise phone systems at Ooma 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?