How to Choose the Right Telephone System for Your Business

By Olivia Johnson - Trusted UK Business Expert

Last Updated 20th of March 2025

4 minute read

You might be wondering if now is the time to invest in a new telephone system for your business. Here are some reasons why you might want to consider upgrading your current system. 

Most people don’t know how to choose the right telephone system for their business. This can be a challenge because there are many different types of systems on the market, and each one has its own set of features and benefits. 

As a business owner, you know that choosing the right telephone system is critical to your success. But it can be difficult to make the right decision when there are so many different types of systems on the market. This guide will help you understand the different types of telephone systems so you can be informed. 

Types of Telephone Systems 

The importance of choosing the right telephone system for your business can’t be overstated. A good system will provide all the features and functions you need to run your business efficiently, and it will be compatible with your existing infrastructure 

Main Types of Telephone Systems 

Different options for business communication:

• On-premises systems. These are the most traditional types of business telephone systems. The equipment is located on your company’s premises, and it is managed by your IT department. On-premises systems are generally more expensive than other types of systems, but they offer the most control and flexibility. 
• Hosted PBX systems. These systems are similar to on-premises systems, but the equipment is located off-site at a data center. The data center is responsible for managing and maintaining the system. In terms of cost, hosted PBX systems are usually cheaper than on-premises systems. 
• VoIP systems. VoIP systems are Internet-based systems that use Voice over IP (VoIP) technology to route calls over the Internet. Examples of VoIP systems include Skype and Google Voice. In terms of cost, VoIP systems are usually the least expensive option. 
• Cloud-based systems. This is the newest type of telephone system. Cloud-based systems are hosted in the cloud and accessed via the Internet. They are typically subscription-based, and they offer a variety of features and functions. 

How to Choose the Right Telephone System for Your Business 

The importance of choosing the right telephone system for your business can’t be overstated. The best way is to evaluate your needs and then compare the different types of systems. Consider factors 

A good system will provide all the features and functions you need to run your business efficiently. Here are some factors to consider when choosing a telephone system for your business: 

• Existing infrastructure : One of the first things you need to consider when choosing a telephone system for your business is whether or not it will be compatible with your existing infrastructure. If you have an on-premises system, for example, it might not be compatible with a hosted VoIP system. 
• Installation and setup : Installation and setup can be complex, so you’ll want to make sure you have a qualified technician on hand. 
• Features and functions : When choosing a telephone system for your business, you need to find one that offers the features and functions you need. For example, if you need a system that can handle a high volume of calls, you’ll want to make sure the system you choose has that capability. 
• Type of business : The type of business you have will also dictate the type of system you need. For example, a small business with fewer than 10 employees might not need all the features and functions of a larger system. 
• Cost of Telephone Systems : You’ll need to factor in the initial cost of the system. Note that on-premises systems tend to be more expensive than hosted or cloud-based systems. 
• Maintenance and Support : You’ll also need to consider ongoing costs for maintenance and support. Make sure you understand the terms of your warranty and service agreement. 

The Future of Telephone Systems 

Telephone systems are constantly evolving, so it’s important to choose a system that can be easily upgraded as your business grows. 

Choosing the right telephone system for your business is a critical decision. There are many different types of systems on the market, and each one has its own set of features and benefits. Carefully consider your needs before making a purchase. 

FAQ

What is a telephone system?

A telephone system is a set of tools and devices that help your business make and receive phone calls. It can have different features like voicemail, call forwarding, and conferencing.

Why should I upgrade my current telephone system?

Upgrading your telephone system can give your business better features, improved call quality, and more flexibility. A new system might also save you money in the long run.

What types of telephone systems are there?

There are four main types:

• On-premises systems: These are traditional systems where the equipment is in your office.
• Hosted PBX systems: The equipment is kept off-site and managed by another company.
• VoIP systems: These use the internet to make calls, like Skype.
• Cloud-based systems: Everything is online, and you access it through the internet.

How do I choose the right telephone system for my business?

Think about what your business needs. Consider how many people will use the system, what features you need, and how much you want to spend.

What should I consider about my existing infrastructure?

Make sure the new system will work with what you already have in place. Some systems might not be compatible with your current setup.

Is it difficult to install and set up a new telephone system?

It can be, so it’s a good idea to have a qualified technician to help with the installation and setup.

What features should I look for in a telephone system?

Look for features that match your business needs, such as call forwarding, voicemail, or conference calling. If you get many calls, make sure the system can handle them.

Does the size of my business matter when choosing a system?

Yes, the size of your business can affect which system is best. A small business might not need as many features as a larger one.

How much will a new telephone system cost?

Costs can vary. On-premises systems are usually more expensive upfront, while cloud-based or VoIP systems might be cheaper but require monthly payments.

What about maintenance and support?

Consider ongoing costs for keeping your system running smoothly. Check what kind of support is included in your service agreement.

Can telephone systems be upgraded in the future?

Yes, many systems can be upgraded as your business grows, so choose one that can expand with your needs.

Why is it important to choose the right telephone system?

The right system helps your business run smoothly, keeps your customers happy, and can even save you money. Make sure to pick a system that fits your business perfectly.