All businesses need an effective and reliable communication system. For most companies today, this means a cloud-based phone system that works via the internet. 

The flexibility and scalability of cloud-based phone systems make them an attractive choice for businesses of all sizes, from small businesses on the go to enterprises that run call centers. 

But is it the best choice for your business? 

In this post, let’s take a closer look at the pros and cons of cloud-based phones to help you make an informed decision.

But if you’re pressed for time, here’s all the information you need at a glance:

What Is a Cloud-Based Phone System?

A cloud-based phone system uses Voice over Internet Protocol (VoIP) technology to connect phone calls. 

Unlike legacy technology, such as landline phones, VoIP phones don’t need any special hardware or infrastructure. There’s no reliance on copper wire networks to make or receive calls like traditional landlines. All you need is a high-speed internet connection to make VoIP calls. 

This makes it easy for businesses to start using cloud-based phone systems and enjoy advantages like lowered monthly running costs, better mobility for remote work, and hardly any maintenance. 

Let’s dive deeper into the benefits of using a cloud-based phone system in the next section. 

Advantages of a Cloud-Based Phone System

Cloud technology is increasingly the norm, which affords many benefits for businesses. From flexibility to remote work perks, these systems are changing the game in how employees connect, collaborate, and communicate. 

Let’s look at the upsides that make cloud-based phone systems a smart choice for growing businesses.

Lower costs

Cloud-based phone systems are more cost-effective compared to traditional telephone systems.

On average, a landline phone system costs businesses $50 per line each month for local or domestic calls. In contrast, VoIP plans start at less than $20 per line per month with international calling, video conferencing, and many other features.

Cloud phone systems are an effective way to trim communication costs. All you need is a stable internet connection and software that enables VoIP capabilities. 

This means you can cut down traditional phone-related expenses that you would have otherwise incurred, such as:

• Setup cost and upfront investment for on-premises Private Branch Exchange (PBX)
• Recurring maintenance costs
• Add-ons for features like auto attendants, voicemail transcription, call queueing, etc.

With VoIP, you get free local numbers, toll-free numbers, and inexpensive international calls. A traditional landline can never give you the same bang for your buck.

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Better reliability and performance

A cloud-based phone system is a great safety net for your business continuity plan — especially when something unexpected, like a natural disaster or a cyber attack, disrupts regular operations. 

Your business could face downtime and risks with a traditional phone system based in one location. In contrast, a cloud-based phone system operates from remote data centers with built-in backup and redundancy plans. If one data center has an issue, others take over seamlessly. 

This helps your business keep running smoothly, and your customers won’t be affected. Their information remains secure and readily available to your team, so you won’t lose connectivity. 

Cloud phone systems can thus offer reliable backup and consistent performance, helping your business stay up and running even during unforeseen challenges.

It is also a more dependable choice for everyday business operations. It is less prone to disruptions because there are fewer critical points that, on failure, would impact the service. This reliability makes it a solid bet for uninterrupted business-as-usual activities.

Faster implementation and setup

Your phone system shouldn’t get in the way of growing your business.

With a traditional phone system, adding scale can be time-consuming and expensive. You’d need to add new phone lines and ports to give each new employee their phone number, which can take weeks. That’s a lot of productivity lost.

With a cloud-based phone system, you can expand your business anytime. It scales to accommodate your team’s growing needs while keeping all your business communications running seamlessly.

Pro Tip: If you want to increase employee collaboration and productivity significantly, try swapping your traditional phone systems with a virtual phone service!

Related Article

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Less maintenance

Maintenance is an unnecessary overhead that can negatively impact employee experience. And the effort and investment required for maintenance can quickly add up. 

Legacy phone systems need at least one or more individuals dedicated to looking after the system’s upkeep. Most companies either end up overburdening their already swamped IT teams or spend more money to hire outside contractors. 

Besides, companies fail to account for the time and effort spent troubleshooting malfunctions and conducting repairs. Not only does this impact employee productivity and morale, it also slows down business growth. 

Instead, when using a cloud PBX system, your VoIP provider expertly handles all these hassles. They manage the phone system entirely off-site on the cloud and ensure uninterrupted service on priority. 

Additionally, they provide stringent service-level agreements (SLAs) and round-the-clock customer service to expedite issue resolution. And all this without disrupting your team’s tasks or the quality of business communication your customers expect.

Access to robust call features

Cloud-based phone systems offer state-of-the-art VoIP features that enhance business communication. Some popular features business owners deem valuable include:

Clearly, cloud-based phone systems have advanced features that can level up your business communications. Besides, access to features helps your team communicate with customers better, constantly improving customer service quality. 

Especially if you run a call center, cloud-based phone systems help you operate it with confidence. You can also integrate your phone system with third-party tools like CRM or accounting software, building a centralized repository for your team.

The best part? A great service provider will let you add new features without hardware updates, complicated requests, or confusing jargon. You can tailor your cloud phone system as and when you need it, to suit your evolving business needs.

Improved customer experience

Customers today have moved on from being price-sensitive. In fact, they don’t mind paying a premium for excellent customer experience. Moreover, they are more likely to purchase products and services from these companies in the future. 

Recent customer service statistics confirm this:

• 42% of consumers would pay more for a friendly, welcoming customer service experience.
• 91% of customers are more likely to make another purchase after a great customer service experience.
• 68% of customers said a positive customer experience significantly improved their brand loyalty.

Cloud-based telephone systems offer businesses enhanced flexibility, scalability, and accessibility to ensure a positive customer experience. 

Customers never have to wait due to the efficient management of call volumes, which redirects calls to the next available support team member. Customer information readily available to service agents results in a more personalized interaction, impressing customers. 

Besides, cloud-based phone providers also let service agents work from anywhere, providing uninterrupted support quickly and efficiently. After all, knowledgeable and happy customer service agents often mean happy customers!

Speed, quality, and perceptions of customer service modernity can be at risk when large businesses continue to use traditional landlines. 

Easily supports remote and hybrid work

The hybrid work model – a few days at the office and a few days of work from home – is now the new normal.

For businesses still using traditional phone systems, this is a two-fold issue. First, they have to maintain the existing infrastructure at the office. Second, they have to spend time and resources to empower their remote workforce. 

This includes providing employees with the right tools and all the customer information they need to do their jobs efficiently. 

Cloud-based phones are perfect for this use case. Remote work features are available out of the box without a complicated setup. Your team can use VoIP desk phones at the office and a business phone app when working from home. It is the best of both worlds!

No matter their work location, everyone on your team can:

• Keep the same phone number and remain accessible to customers and coworkers
• Make and receive phone calls with a VoIP softphone app
• Use advanced features like call forwarding, virtual voicemail, and call recording
• Communicate clearly with substantially better call quality thanks to HD Voice

Unified communications

Cloud-based phone systems make it easy to centralize all your business communications on a single platform, without changing existing infrastructure or telecommuting technology.

This solution, called Unified Communications as a Service (UCaaS), encompasses phone calls, video conferencing, instant messaging, conference calls, and file sharing.

UCaaS improves productivity and collaboration between on-site employees and remote teams. Everyone has access to the relevant communication tools they need for their day-to-day.

Cloud phone services accelerate employee onboarding and simplify virtual meetings. It removes the barriers and silos associated with older communication systems like traditional phones, which often lack any of these advanced features.

Cloud-Based Phone System Drawbacks

While cloud-based phone systems have several cons, no technology is flawless. There are inherent challenges that might be of particular interest to your business, making cloud-based phone systems less attractive as an option. 

Here are the potential downsides that come with running your business phone system entirely over the internet.

Prices can add up

Cloud-based phone systems today often charge on a per-user monthly basis. Over time, these costs can add up. 

You may be charged for add-on features you don’t even intend to use or incur metered prices for other features you heavily use. For small businesses, subscription prices might be steep compared to simply using existing traditional phone lines. 

However, most cloud-based phone systems today come with built-in collaboration tools. This eliminates the need for costly collaboration tools such as Zoom, Slack, or separate conference bridges. 

Besides, you also save on time and money spent on IT support, repairing system issues, and ensuring security and compliance, to name a few. 

All these benefits can offset the monthly cost of cloud-based phone systems, making them more cost-effective than seemingly cheap traditional phones. 

If you’re still unsure about how much Nextiva’s cloud-based phone system will cost your company, you can request a no-obligation price quote.

You need fast networking equipment

Cloud-based phone systems need high-speed broadband internet connections. 

Cloud-based phone systems use Wi-Fi to function, but Wi-Fi doesn’t work well through walls. If your office hasn’t conducted a wireless site audit, you might have some dead spots.

But there are easy fixes and affordable solutions for this problem. You might need to set up Quality of Service (QoS) for your network to prevent jitter. 

For larger offices, consider adding a mesh Wi-Fi network for maximum speed and coverage.

Doesn’t work without a stable internet connection

One thing can make or break all the benefits of moving your phone system to the cloud  — your internet connection!

If your internet connection fails, your cloud-based phone system could cease to work. And yet, a reliable internet connection is the only system requirement for cloud-based phone systems. 

But today, stable internet is everywhere! Almost every cafe gives you strong enough Wi-Fi for video calls and streaming. 

Over the past decade, internet speeds have increased, and so has its reliability. It is common to see 100+ Mbps speeds at home or work. This bandwidth could support more than 1,000 VoIP calls at once!

If you’re not sure how reliable your internet connection is, you can take our free VoIP capacity test to see if your network is ready for VoIP.

And if your ISP goes down, you and your team can answer calls automatically on your cell phones or get forwarded to a voicemail box for follow-up. There’s basically never a “busy signal” with cloud-based VoIP. 

If you don’t have another internet connection, call our support team, and we can handle these urgent requests.

Location info is limited for emergency calls

This won’t be an issue for most people, but internet-based phone calls to 911 don’t necessarily have accurate location data attached.

When internet-based calls are directed to an emergency call center (known as a PSAP), operators may not know your location or phone number. By default, calls arrive at the nearest PSAP based on the account holder’s address.

To overcome this, update your cloud phone system’s fixed address assigned to each business phone line. This setting is known as Enhanced 911 and you should become familiar with. When employees work from home or away from the office, you should update it promptly.

We recommend using smartphones for internet-based calls as GPS data and cellular triangulation pass location data instantly to nearby PSAPs.

Limited compatibility with analog devices

If you love traditional phone equipment like fax machines, you won’t really get excited about cloud phone systems. This equipment was in its prime in the 90s, but its time is limited today. 

It gets tricky if you need PSTN connectivity between your security systems or gates, so you might need to use an analog telephone adapter or an “ATA” for short. Conversely, cellular connectivity for these services is also widely available and has solid reliability. 

Tips For Moving Your Phone Service To The Cloud

We’ve seen our fair share of successes when companies upgrade to the cloud. It can be a bit intimidating, but with a little planning, you will be very successful.

Moving your office phone system to the cloud will bring benefits that a traditional landline can never match. The pros outweigh the cons.

Here are a few action items to make your migration to the cloud go smoothly.

• Plan ahead – Forecast your company’s growth, network requirements, ISP bandwidth, and team workflow. 
• Leverage powerful VoIP features – To make the most out of your cloud-based phone system, thoroughly evaluate your team’s use cases and the built-in features they will require the most.
• Follow recommendations from your VoIP provider – When moving to a cloud-based phone system, ask plenty of questions. A reputable service provider will take the time to answer your questions and help you migrate smoothly.

When choosing your business communication system, there is a lot at stake. Cloud-based phone systems provide the right flexibility, scalability, and capabilities you need for a growing business. 

But choose the right partner in your journey to cloud-based phone systems. This will ensure a smooth transition to the cloud, optimized performance, and a more reliable experience for your customers and employees.

Business communications have come a long way since landlines. While plain old telephone service (POTS) ruled supreme throughout most of the 20th century, the rise of internet-powered phone services is disrupting this space.

VoIP phone systems are becoming increasingly popular among both small businesses and large enterprises. However, traditional copper wire landlines still have their place in today’s communication landscape.

This article explores the key differences between traditional landline phones versus modern VoIP solutions to help readers decide which solution makes the most sense for their phone communication requirements.

We compare the technology behind each system, break down pricing differences, analyze redundancy and emergency services, and more to provide a detailed yet easy-to-grasp comparison to help you choose one that best fits your business needs.

How Landlines Work

Landline phone systems are a type of analog phone system installed by the local phone company. It’s also known as Plain Old Telephone Service (POTS).

Analog phones function in the same way they did more than a century ago. Sound is transmitted using electrical pulses on a wire. These wires connect to the phone service provider.

A company would configure an on-premises Private Branch Exchange (PBX) with one or more telephone lines. A PBX creates an internal phone network, placing employees onto a shared telephone system.

Dubbed “copper wire,” voice service can only travel wherever you trenched and laid wires. Traditional phone service is subject to bad weather, installation, and expensive long-distance calls.

But landlines do offer some benefits. Landline phones use widespread existing infrastructure, do not require additional bandwidth, and support legacy analog equipment better than VoIP systems.

How VoIP works

Voice over IP, or “VoIP” for short, is also known as a digital phone service or hosted phone service. It works by converting sound into data packets or digital signals and transmits them to a VoIP provider. 

VoIP service providers then direct calls between the Public Switched Telephone Network (PSTN).

This happens in milliseconds thanks to blazing-fast cable or fiber broadband internet connections. VoIP lets small businesses get all the best telecommunication features for a fraction of the cost.

With VoIP, companies can place and receive calls without any extra hardware. All they need is a computer, laptop, headset, or cell phone to use their business phone system.

VoIP uses your existing internet connection for phone calls. It also includes many advanced calling features such as auto-attendants, IVR, advanced call routing, and conference calls, plus other add-ons built into the service.

Keep in mind that employees are most comfortable with a desk phone. IP phones turn sound into digital signals and maintain connectivity with a VoIP provider.

Related: What Is a Virtual Phone System & How Does It Work?

Key Differences Between Landlines and VoIP

Costs

VoIP services offer significantly lower costs compared to landline telephones. VoIP hardware like IP phones and routers have become very affordable.

In addition, monthly VoIP subscription fees are typically lower, and long-distance or international calls often cost less or are even included. Many providers offer free smartphone softphone apps so no extra hardware is required.

In contrast, landlines involve high installation and equipment fees, long-distance charges, and potentially higher monthly bills that can easily cost hundreds of dollars per user per year. This makes them difficult to justify in the modern remote work era with widespread broadband internet access.

Top virtual phone services like Nextiva bundle advanced features into a simple low monthly rate starting at $18.95 per user.

Features

VoIP matches landlines in core call quality while providing additional capabilities. With a fast, stable internet connection, calls are crystal clear. Unique IP phone features like auto-attendants, call queues, forwarding, and recording enhance productivity.

Mobility is a major benefit, as VoIP devices work anywhere with internet access, not just on a wall landline. Video calling and conference calling also help connect today’s remote teams.

Related Article

25+ VoIP Features and Benefits for All Businesses

Reliability

VoIP relies on consistent, high-speed broadband internet, which is susceptible to disruptions from power outages or network issues.

Landlines can remain operational during internet and electricity failures. However, leading business VoIP providers deliver excellent uptime with geographically redundant data centers and automatic failover.

Scalability

Cloud-based VoIP systems scale seamlessly by adding extra users, features, or service locations through simple software updates.

Landlines require expensive hardware upgrades and on-premise installations to add capacity.

Implementation

VoIP setup is fast and hardware-light — usually requiring just an IP phone or desktop app download to get started. There’s no technician wiring or installation process. Phone number porting from landlines also tends quicker, often completed in 1-2 business days.

Landlines will generally work anywhere with existing analog phone infrastructure. But VoIP relies on strong Wi-Fi, so internet quality must be vetted beforehand.

Security & privacy

VoIP data transmission may have vulnerabilities to interception since calls occur over the public internet. Leading business systems encrypt data to safeguard sensitive conversations. Landlines offer inherent security via closed telephone networks.

VoIP calls can be encrypted just like any internet traffic. Power and internet dependency also make VoIP systems more prone to service disruptions.

But, for most modern organizations, the advanced features and cost savings of VoIP outweigh the risks. You just need to choose a secure VoIP phone service that offers encryption and data security.

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Is VoIP Secure? The Ultimate Guide to VoIP Security & Call Encryption

Advantages of Using Landlines

Analog phone systems aren’t always the wrong choice. In some cases, they can be the best option for business communications.

1) Ubiquitous infrastructure access: Landlines tap into legacy telephone infrastructure reaching the vast majority of developed areas. This presents near-universal voice service potential despite lacking the speed to support advanced digital features.

2) No bandwidth resource drain: Landlines do not require sharing broadband internet bandwidth resources for voice calls. This provides call reliability advantages for the areas with slow or no broadband access where VoIP would struggle.

3) Legacy analog system support: Some business premises equipment like older alarms, faxes, and modems rely on analog signals passed through a landline connection. While Analog Telephone Adapters can bridge this gap, natively analog landlines avoid any translation issues.

In situations lacking broadband infrastructure or needing to run dated analog equipment, retaining landline service can make economic and practical sense.

However, most modern businesses will outgrow these limitations over time, making VoIP systems preferable for advanced functionality, cost savings, and future-proofing.

Advantages of Switching From Landlines To VoIP Systems

1) Superior reliability

VoIP uses the same proven and redundant internet infrastructure that powers many mission-critical business systems today.

For example, leading VoIP providers like Nextiva use multiple, geographically dispersed data centers across North America to deliver enterprise-grade reliability.

This means your phone service continues uninterrupted even if one data center goes offline. VoIP systems intelligently route calls and data packets to reach their destination reliably.

As a result, you avoid busy signals, static, and downtime typically associated with analog phone systems. If you do experience a temporary internet or power outage, calls can be automatically forwarded to cell phones.

Top VoIP providers have dedicated support teams and account management. They continuously update software, cybersecurity, and infrastructure monitoring. Landline customer service varies greatly by provider.

2) Greater flexibility & scalability

VoIP technology enables work-from-home and remote work capabilities without clients noticing any difference in sound quality or reliability. Your office phone number is secure yet accessible anywhere via mobile apps and softphones installed on laptops and smartphones.

This flexibility boosts productivity by eliminating commutes and office distractions.

Employees can efficiently handle calls and voicemails via email from anywhere. And features like call forwarding and “find me, follow me” calling make it easy to route calls to the right people at the right time, even when team members are out of the office.

VoIP systems are also highly scalable, making adding new users, locations, and features easy through simple software updates.

Landline systems require expensive new hardware and wiring to add capacity.

3) Superior call quality

Cloud-based VoIP systems leverage wideband audio codecs to deliver clear, high-definition voice quality on every call. This is a stark improvement over crackly, low-fidelity analog phone calls.

With VoIP, both sides of the call experience sharp, static-free audio with less repetition and miscommunication.

4) Fast setup

VoIP systems can be set up quickly. With minimal hardware requirements, users across multiple locations can start making internet-based calls in minutes after downloading a simple smartphone app.

Most organizations can fully migrate from legacy landlines to VoIP phone services quicker than installing new landlines. Careful pre-planning and working with experienced VoIP vendors simplify the transition.

5) Advanced features and integrations

VoIP systems integrate seamlessly with popular business apps like CRM software, email, calendars, etc. This enhances productivity by bringing real-time communications and collaboration tools together in one place.

VoIP providers also offer call analytics dashboards to track real-time usage metrics and record trends. This provides visibility into call volumes, wait times, abandoned calls, etc. Landlines do not collect or report analytics.

You gain access to a rich suite of calling features like call recording, auto-attendants, mobile apps, virtual fax, toll-free numbers, and unlimited calling plans.

6) Significant cost savings

VoIP services cost significantly less compared to conventional business phone services. The advanced technology minimizes infrastructure while maximizing efficiency.

With VoIP, you only pay for the calling capacity that you need instead of being locked into inflexible plans. International calls and adding new extensions cost a fraction of analog phone services. Overall, most businesses can expect 40% to 60% savings on their monthly phone bills with VoIP.

Common VoIP Drawbacks & How To Mitigate Them

Internet dependency

VoIP systems rely on broadband internet connectivity to function. If your business experiences an internet or power outage, calls will be disrupted.

However, leading VoIP providers like Nextiva use geographically redundant data centers and optimize latency. They also offer automatic call forwarding to cell phones during disruptions and battery backup options. Having a secondary wired phone line can also act as an extra safety net.

Call quality issues

The quality of VoIP calls depends on internet bandwidth and connectivity. If your network experiences congestion, calls may stutter or drop unexpectedly.

Invest in a business-grade router, high-speed broadband, and QoS settings to prioritize traffic. Wired Ethernet is preferable to spotty Wi-Fi. Stay up to date with the latest phones that support advanced voice codecs.

Limited mobility support

While VoIP devices can be used anywhere with a solid internet connection, most providers don’t integrate well with satellite networks. If you operate in remote areas with limited connectivity, traditional landlines may still be preferable.

Some businesses maintain wired landlines for stationary locations with no internet or mobile phone coverage while using VoIP for everyone else. Doing so gives you the best of both worlds in a hybrid model.

Security vulnerabilities

Because VoIP traffic flows over the public internet rather than a closed telephone network, it can be more vulnerable to cyber threats like hacking, eavesdropping, and information theft.

Reputable business VoIP providers make security a top priority, encrypting call traffic and maintaining robust firewalls. ITSPs that have SOC2 compliance or other security accreditations provide a higher level of VoIP security.

These strategies help minimize vulnerabilities and make VoIP systems reliable for most modern organizations. Managing expectations around internet reliability and working closely with VoIP vendors ensures the best results.

Which Phone System Is Best for Businesses?

A business counts on its phone system to keep employees connected and to serve customers. Most workplaces now have an operational need to enable staff to work from home.

Landline phone service can’t match business VoIP’s flexibility, features, and ease of use. If your existing phone system works and you have no plans to change how you use it, it might be acceptable to keep the landline.

A cloud VoIP is ideally the best phone system for businesses. Reputable VoIP providers like Nextiva offer extensive coverage with multiple redundant data centers, along with dozens of advanced features.

Nextiva is the top choice among enterprises and small businesses alike. It offers the most scalability for their teams to communicate. With Nextiva’s reliable VoIP services, uptime is never an issue. Plus, it can cut VoIP costs by more than half. 

Related: VoIP FAQ: 71 Questions & Answers About All Things VoIP

Landlines vs. VoIP FAQs

Choosing the right VoIP phone service can be a daunting task for any business, given the many options available in the market. OnSIP is a notable contender, especially known for its effectiveness in facilitating SIP trunks.

However, businesses seeking a more comprehensive VoIP system — one that offers built-in CRM, seamless integrations, contact center solutions, and unified communications capabilities — might look for OnSIP alternatives.

We’ve rounded up the top competitors to OnSIP, as well as the platform features, pricing, and overall reliability of various market players, to present you with a detailed comparison of better alternatives to OnSIP.

1. Nextiva
2. Grasshopper
3. Aircall
4. CallHippo
5. Ooma Office
6. Dialpad
7. OpenPhone
8. Phone.com
9. Mitel
10. Vonage

1. Nextiva

Nextiva is a popular VoIP phone system for companies of all sizes. Designed with remote workers in mind, Nextiva is more than just a VoIP system. It’s a complete all-in-one solution to manage every aspect of your business communication, from voice calls through to team chat and CRM integration.

Because of its advanced features, more than 150,000 companies use Nextiva (including Netflix, Amazon, and Pac-12). That’s why U.S. News ranked Nextiva as the #1 business phone system for four years in a row.

What are some of its top features?

Nextiva customers love its all-in-one platform for many reasons. Amongst its top features include:

• Team chat: Instead of needing different platforms to text, voice chat, and video conference with your team, just use Nextiva. It has all three communication platforms built-in; no extra subscriptions needed.
• Auto attendant: Give incoming callers a great first impression and use auto-attendants to direct them to the person best suited to answer their query. They can press a number on their keypad to reach a specific department without having to go through a receptionist.
• Call Pop: Greet incoming callers with a personalized script with Call Pop. You’ll see important caller details on your screen before picking up—including the caller’s name and company, last survey rating, and value of their account.
• Voice analytics: Track important KPIs across sales, support, and call center teams with advanced voice analytics. You’ll get insight into your average call times and answer speed both as a team and individually.
• Call center solutions: Whenever you need to start a call center or contact center, you can spin up a virtual call center for your team. It’s fully integrated with Nextiva.

Reliability, support, and security

Nextiva has eight military-grade data centers around the world, with redundancies in place should something go wrong. Not only that, but each data center has world-class security. It boasts a 99.999% uptime — the gold standard in the business phone system world—so you’re always on.

Nextiva’s VoIP software is compliant with privacy laws, including HIPAA, PCI, and SOC 2. Your business’ and customers’ information is always kept safe.

If you do need help, Nextiva prides itself on customer service. You can reach their support team 24/7 by phone, email, or webchat. Their support center is also available to get quick responses to your questions.

Nextiva pricing options

Pricing for Nextiva’s business phone system is straightforward. Choose from one of the following plans depending on your team size, feature requirements, and budget:

• Essential Plan: For just $ 18.95 per user per month, you can get unlimited voice calling, a toll-free number, and auto-attendant.
• Professional Plan: Get everything in Essential, plus unlimited video conferencing, Call Pop., and SMS integration, for just $22.95 per user per month.
• Enterprise Plan: Nextiva’s most popular plan includes unlimited Call Pop, voice analytics, and extended integrations for $32.95 per user per month.

2. Grasshopper

Grasshopper is an OnSIP alternative for smaller businesses. Instead of a suite of team collaboration tools that other competitors have to offer, Grasshopper’s core offering adds a business number to an existing personal phone.

What are some of its top features?

Since they’re designed for small business owners, Grasshopper keeps its feature set simple. Amongst some of its most popular features include:

• Business texting: SMS has amongst the highest open rates of any written content (including email). Grasshoppers’ business SMS feature lets you read your messages by texting customers.
• Virtual receptionist: Don’t have money to hire a human receptionist to greet incoming callers? Grasshopper offers a virtual receptionist feature that greets callers, asks their reason for calling, and prioritizes their call accordingly.
• Vanity numbers: Instead of handing out your personal phone number to customers, have them call a vanity number like 1-800-BRAND. The call will be routed to your personal cell phone (where you can choose when to accept them).

Reliability, support, and security

Grasshopper is a reliable phone system with 24/7 US-based support. Should you have questions, you can call, email, or message them on social media.

Plus, since Grasshopper uses your existing service provider to make business calls, the quality of their VoIP calls is just as good as those made using your regular phone number.

However, it’s important to note that Grasshopper is not HIPAA compliant. Their support team needs to access your account settings to deal with queries. This means they’re unable to keep customer and patient information private.

Grasshopper pricing options

Grasshopper has three pricing tiers, each of which comes with a 7-day free trial for you to test before you commit.

All plans have access to its most popular features—including mobile apps, Wi-Fi calling, and custom greetings. The right plan for your small business depends on how many phone numbers and extensions you need:

• True Solo Plan: For one user, one phone number, and one extension for $14 per month.
• Solo Plus Plan: Get one phone number and three extensions for $28 per month.
• Small Business Plan: Get five phone numbers and unlimited extensions for $80 per month.

3. Aircall

Aircall is a cloud-based call center software for larger teams. According to its website, more than 8,000 companies use their VoIP service to manage internal and external communication.

What are some of its top features?

Aircall offers great features with its VoIP phone system, including:

• Integrations: Aircall connects with the tools your business is already using—including Shopify, Intercom, HubSpot, and Zapier. Sync your call data to other tools for greater insight into your business communications.
• Call commenting: Keep track of why customers call your contact center by leaving notes inside Aircall. These comments sync with your CRM and can be assigned to individual team members, so your entire team stays updated.
• Click to dial: Tired of copying and pasting a customer’s number into your business phone? If the Aircall app is installed on your device, you’re able to click a number and call it immediately.

Reliability, support, and security

Aircall has 99.99% uptime and seven worldwide data centers to route business calls through, should one go down. It also sends notifications to customers when their phone network is having issues so it can be troubleshot immediately.
As for customer service, Aircall gives every new business an onboarding manager. They’ll walk you through how to set up your new business phone system, and answer any questions you have.

Aircall pricing options

Pricing for Aircall’s cloud phone system is based on the features you’ll get access to.

• Essentials Plan: Get unlimited calls within the US and Canada, IVR, and phone support with this plan. Prices start at $30 per user, per month.
• Professional Plan: Get live call monitoring, call tagging, and a dedicated account manager with this plan. Prices start at $50 per user, per month.
• Custom Plan: Get everything Aircall has to offer, including unlimited worldwide calls and custom analytics, with this plan. These packages are customized; you’ll get a tailored quote for the features you need.

4. CallHippo

CallHippo is another OnSIP alternative to look into if you need a simple, flexible business phone service. Over 5,000 companies use CallHippo’s virtual phone system. They promise companies can get started in just three minutes.

What are some of its top features?

CallHippo has some great features to offer its small business customers. Amongst some of the most popular include:

• Global connect: Contacting people in other countries? Avoid waking them up in the middle of the night with this feature. It’ll show the caller’s timezone before you hit the dial.
• Voice broadcasting: Save time on phone outreach with voice broadcasting. With this feature, you can record one simple conversation and replay it when having similar conversations.
• Call tracking: Understand the journey customers go through using this feature. It’ll pull data to explain how the customer found your phone number, the device they’re using to call, and whether they’ve contacted you before.

Reliability, support, and security

CallHippo doesn’t display any information about their data centers on their website. However, they don’t report any incidents or outages over the last three months. They also offer a patent-pending technology that promises to improve VoIP call quality.

CallHippo pricing options

CallHippo offers three main plans alongside a custom tier. Each depends on the features you need access to.
However, it’s worth noting that call insights, custom caller IDs, and voicemail transcription aren’t included as standard with any plan. Each of those features costs extra per month.

• Bronze: Get one free phone number, voicemail, SMS messaging, and shared team inboxes with this plan. Prices start from $15 per user, per month.
• Silver: Get unlimited incoming calls, holiday routing, and call queues with this plan. Prices start from $30 per user, per month.
• Platinum: Get power dialer, call transfer, and three-way calling with this plan. Prices start from $45 per user, per month.
• Custom: Get everything CallHippo has to offer, including custom reports, app blocking, and advanced integrations with this plan. Prices are tailored for your team size.

5. Ooma Office

Ooma Office is a cloud phone system designed for smaller businesses to communicate with their customers and remote team. Also known as Ooma Telo, they have a no-contract service so customers are free to use the platform when they need.

What are some of its top features?

Ooma Office has 30+ features available to its customers, including:

• Business call forwarding: Have a team member who’s out of the office? Have incoming calls to their phone number diverted to another employee. That way, customers always get a response—even if their main contact is away.
• Voicemail transcription: Save time listening to voicemails. Have them transcribed and sent directly to your email inbox for you to follow up with and reference.
• VoIP desk phones: Have a dedicated desk phone just for work calls throughout the day, instead of accepting calls on a mobile or desktop.

Reliability, support, and security

Ooma Office’s network has seven data centers used to route business calls. However, calls made through its network are only end-to-end encrypted if the person you’re calling also uses its platform. This also means it’s not HIPAA compliant.
Should you need help with Ooma Office’s business phone system, find an answer using their online support library. You can also contact their customer support through live chat on their website.

Ooma Office pricing options

All Ooma Office plans include access to its 30+ most popular features. You’ll also get one free toll-free number and mobile app with every plan. However, there are two differences between each option:

• Ooma Office Essentials: The basic plan includes transfer music, call parking, and one conference bridge per user. Prices start at $19.95 per user per month.
• Ooma Office Pro: Get everything in the basic plan plus video conferencing, desktop app, and enhanced call blocking. Pricing starts at $24.95 per user, per month

Related Article

Ooma Business Pricing: Is It Worth It?

6. Dialpad

Dialpad’s virtual PBX is powered by artificial intelligence. Its cloud communication platform is designed for businesses of all sizes to connect with their internal team and customers.

What are some of its top features?

Dialpad has a suite of features available to its customers. Amongst some of the most popular include:

• Voice intelligence: Dialpad’s platform uses speech recognition, natural language processing, machine learning to deliver real-time coaching to your team. They can use the insights to understand customer sentiment and report on success.
• Conference calling: Need to hop on a video meeting with your team or customers? You can do that within Dialpad’s virtual conference room.
• Call routing: Choose which softphone should ring with advanced call routing. For example: configure it so certain team members get calls from people in a specific location.
• Artificial intelligence: The platform has some contact center AI functionality to transcribe conversations and analyze customer sentiment.

Reliability, support, and security

Because Dialpad uses internet connections to make business calls, the audio and video quality is just as good as your standard internet speed. This often makes them sound clearer than traditional landline calls.

Dialpad is also SOC 2 and HIPPA compliant. Calls are encrypted to prevent eavesdroppers from listening to your private conversations.

Dialpad pricing options

With a 14-day free trial on each plan, you’ve got the choice between three plans if considering Dialpad. The right choice for your business depends on how many users you’ll have.

• Standard: This plan includes unlimited calls, meetings for up to 10 people, and call controls. Pricing starts at $15 per user per month.
• Pro: Get all the features in the Standard plan plus Salesforce integration and 24/7 phone support. Pricing starts at $25 per user per month.
• Enterprise: This plan offers all Dialpad’s features. Pricing is custom, but you’ll need a minimum of 100 licenses.

Related Article

Top 10 Dialpad Alternatives & Competitors [2024]

7. OpenPhone

OpenPhone is another VoIP carrier worth considering if you’re looking for an OnSIP alternative. It works by adding a business line to your existing phone number, so you can take business calls on the go without carrying two phones or extra SIM cards.

What are some of its top features?

OpenPhone offers some great features in its plans, including:

• Softphone app: OpenPhone has a softphone app that is easy to use and meant to be used instead of office phones.
• Shared inbox: Talk with your entire team or just a certain department using shared inboxes. Several people can call and text using one phone number.
• Snippets: Do you have the same conversations over and over again? Create templates that answer your FAQs and reuse them to save time answering repetitive queries.

Reliability, support, and security

OpenPhone runs on Amazon Web Services, which means it can encrypt any conversations made through its network using 256-bit encryption. However, OpenPhone is not HIPAA compliant.
As for customer service, OpenPhone hosts demonstrations on how to use their phone system. They also have a page for real-time assistance to get quick answers to a question.

Related: 10 Best OpenPhone Alternatives & Competitors for Businesses

OpenPhone pricing options

OpenPhone prides itself on having simple, flexible pricing. They offer two plans alongside a custom enterprise package, depending on the features you need access to. Both plans come with a free trial.

• Starter Plan: This plan includes unlimited calls and SMS to the U.S. and Canada, call recording, and Zapier integrations. Pricing starts at $15 per user per month.
• Business Plan: Get HubSpot integration, priority support, and in-depth call reporting with this plan. Pricing starts at $23 per user per month.

Related Article

OpenPhone Pricing: Can It Beat Nextiva?

8. Phone.com

Phone.com is a cloud phone system designed to help small and medium-sized businesses to work remotely. It offers voice, text, video, fax, and conferencing features with its virtual phone service.

What are some of its top features?

Amongst some of Phone.com’s top features are:

• Bring your own number: If you’re switching from another phone system and have a recognizable phone number you don’t want to lose, Phone.com allows you to bring your existing number to its network.
• Do not disturb: In a meeting or at a conference? Turn your business phone off and have it automatically diverted to a team member.
• Voice tagging: Ask incoming callers to press a number on their keypad that best describes the issue they need help with. View that information before accepting their call so you’re ready to help immediately.

Reliability, support, and security

Phone.com’s text responder and VoIP phone system is HIPAA HITECH ready. They also offer Business Associate Agreements (BAA) for HIPAA compliant VoIP when required and use DES encryption to prevent eavesdroppers from listening in on your video calls.

Should you need help, Phone.com’s multilingual support team is available 24/7 to answer questions. You can reach them through phone, online chat, or email.

Phone.com pricing options

Phone.com offers three packages for its VoIP phone system. Each one includes access to its 40+ standard features:

• Basic: This plan includes one phone number, 500 pooled minutes, and video conferencing for up to 10 participants. Prices start at $12.74 per user per month.
• Plus: With this plan, you can get unlimited minutes and texts, HIPAA-compliant video conferencing for up to 24 participants, and video recording. Prices start at $18.69 per user per month.
• Pro: This plan includes call recording, video conferencing for 100 participants, CRM integrations, and call analytics. Prices start at $27.19 per user per month.

9. Mitel

Mitel is an OnSIP competitor with an all-in-one communication platform. They focus on giving the tools enterprise companies need to manage a large influx of calls. However, they also have smaller packages for small and medium-sized businesses to start using VoIP.

What are some of its top features?

Mitel’s business phone system has some great features on offer, including:

• MiTeam meetings: Host a virtual meeting using Mitel’s video conferencing software. It’s ideal for remote teams with employees working from different locations.
• Artificial intelligence: Mitel uses Google Cloud’s AI platform to deliver virtual agents in its phone system dashboard. Have the machine learning software handle responses to FAQs while you spend time on complex queries that need a human response.
• Softphone apps: Turn any internet-connected device into a business VoIP phone with Mitel’s app. You’ll find one for Mac, PC, iOS, and Android.

Reliability, support, and security

Mitel prides itself on having superior customer support. Businesses using their phone system have a dedicated success manager and several ways to contact their support team, should they need any help.
As for reliability and security, Mitel’s network is built on Google Cloud. They have 14 data centers around the world. Should one go down, your business calls are automatically routed through another.

Mitel pricing options

Mitel has three packages on offer. What’s interesting is that not all team members have to be on the same plan. You can mix and match which package each employee has, depending on the features they need access to. Here’s a quick breakdown of their options;

• Essentials: Get collaboration, conferencing, and PBX features with this plan. Prices start at $20.99 per user, per month.
• Premier: Get all essential features plus CRM integration and call recording with Mitel’s most popular plan. Prices start at $26.59 per user, per month.
• Elite: Get all premier features plus archiving and always-on call recording with this plan. Prices start at $38.49 per user, per month.

10. Vonage

Vonage is another OnSIP alternative to investigate if you’re looking for a flexible VoIP platform. It’s used by many companies including Glassdoor and DHL, who rely on its business phone system to communicate.

What are some of its top features?

Vonage has 50+ VoIP features to offer businesses using its phone system, including:

• Follow me: Never miss a business call by configuring Vonage to follow you where you go. For example: set your cell phone to ring for the first five seconds of an incoming call. If there’s no answer within those five seconds, have their call automatically diverted to your desktop.
• Conference bridge: Allow up to 30 team members to dial into a video conference from anywhere. Mute and add people from the admin dashboard at any point.
• Call flip: Need to take calls on the go? Instead of hanging up and redialing, Vonage can transfer live calls across multiple devices.

Related Article

Top 10 Vonage Alternatives & Competitors for Businesses to Try

Reliability, support, and security

Vonage has an average uptime of 99.999% across its servers. It also prioritizes the protection and security of customer data, and is HITECH, HITRUST, and HIPAA compliant.
Customers of Vonage also have the ability to contact its support team at any time using phone, email, or live chat. There’s also a self-service portal on their website containing answers to FAQs.

Vonage pricing options

Businesses have three packages to choose from when using Vonage. Each comes with a 14-day free trial for up to 99 phone lines.

• Mobile: With this plan, you can make unlimited calls in the U.S., Canada, and Mexico and send unlimited team messages. Prices start at $13.99 per month, per user.
• Premium: This plan includes unlimited video conferencing for up to 200 participants, auto attendants, and a call queue. Prices start at $20.99 per month, per user.
• Advanced: This plan includes all professional features plus company-wide call recording and visual voicemail. Prices start at $27.99 per month, per user.

What’s the Best Alternative to OnSIP?

OnSIP is a good option for small businesses needing a simple VoIP provider. But for growing businesses looking to get the most out of their business phone system, the best choice is Nextiva.

First, customers love Nextiva’s Amazing Service promise. You can get real-time responses to your questions through the channel you prefer—including live chat, phone, and email. It’s why Nextiva continues to win award after award for its customer support.

Customers love Nextiva’s product, features, and ease of use. It has a 4.5-star rating on G2, and the vast majority (92%) of people who’ve reviewed Nextiva on GetVoIP would recommend it. It’s why Nextiva’s VoIP platform was ranked the #1 business phone system by U.S. News for two years in a row.

Want to learn more about our highest-rated business phone system? Compare Nextiva’s plans and find the ONE to meet all your business requirements.

OnSIP, Grasshopper, Aircall, CallHippo, Ooma Office, Dialpad, OpenPhone, Phone.com, Mitel, and Vonage have no relationship with Nextiva, Inc. and are the registered trademarks of their respective owners.

Want to make your phone system cost less and do more? You’ve likely come across cloud telephony, and you want to know whether it can help your specific use case.

If you’re debating the switch from your existing business phone service to cloud telephony, you’re in the right place. In this guide, we’re covering everything you need to know, including the essentials of cloud telephony, how it works, how it benefits your business, and how to choose your cloud telephony provider.

Let’s jump right in.

What is Cloud Telephony?

Cloud telephony is a phone system that runs through your internet connection. It’s also known as a VoIP-based hosted PBX solution. It helps you move your business phone service to the cloud.

Cloud telephony streamlines your business communications and grows with your business. Whether you’re opening new offices, hiring remote workers, or expanding your in-house teams, cloud telephony will make the expansion effortless and cost-effective.

Cloud telephony is a type of Unified Communications as a Service (UCaaS). UCaaS is a unified communications model, meaning it brings various communication systems and collaboration tools together. With cloud telephony, you won’t just move your phone calls to the cloud but also connect them with your video meetings, instant messaging, CRM, and business processes across the board.

As part of your UCaaS platform, cloud telephony will better connect your teams and make your employees more focused, engaged, and satisfied in their roles. As a matter of fact, a study conducted by CMBR for Cisco concluded that nearly 8 in 10 employees experience improved productivity levels due to remote work capabilities, like team chat and video conferencing.

How Does Cloud Telephony Work?

Cloud telephony works through a VoIP service provider. When you dial the phone number you want to call, your service provider handles the routing. It converts analog voice signals into data packets and transmits them over your internet connection. That’s how it connects your phone to the person you’re calling.

On your end, you would replace individual phone extensions with a VoIP desk phone. Rather than connecting to a landline, you plug your phones into your existing network. You can also use a softphone or an app installed on your computer, tablet, or smartphone. In both cases, you’re calling from a modern, easy-to-use interface and establish a call in a split second.

Because cloud telephony runs in the cloud, you can manage your business phone system through an online dashboard for full control over phone numbers, call forwarding, adding new users, and more.

Related: Computer Telephony Integration: What Is It, Benefits & How It Works

Cloud telephony vs. traditional PBX: What’s the difference?

For your employees, the end-users of your telephone system, things might not look much different between cloud telephone and traditional PBX. When we look under the hood, we’ll find quite a different story.

As you’ll see in the next section, cloud telephony removes your need for physical equipment. Your staff can communicate with each other and with your customers using any internet-connected device. They can do so wherever they can use Wi-Fi or a 4G internet connection.

From your company’s perspective, getting started with cloud telephony is simple. Instead of a complex, expensive process to connect to the Public Switched Telephone Network (PSTN), all you need is a VoIP service provider and a reliable broadband connection.

Traditional PBX presents a much steeper challenge, both in starting up and maintaining your phone service. Here’s why:

First, there’s the setup cost and effort. A telephone provider needs to visit your location and install stationary equipment, and you’ll end up paying both for both the work and the gear.

You also have to maintain the technical setup of the Private Branch Exchange (PBX) equipment at your location. If something overheats, breaks, or becomes outdated, you have to fix or replace it. It’s not only costly, but it robs your team of their productivity and focus.

A traditional PBX makes your phone calls, especially long-distance calls, more expensive. It offers basic calling features, which can be a hassle if you want to use advanced features like HD audio, voicemail-to-email, or call analytics.

If your company is growing, you’ll want to open new locations, add more phone lines, or introduce remote working options. Traditional PBX systems don’t scale easily because they add more equipment, maintenance, and costs. They also aren’t a convenient option for employees who travel for work and want to stay productive because their phone number is tied to a physical desk phone.

A traditional PBX system can be a good option for small companies whose business needs rarely change and who don’t plan on expanding. But if you want to grow and make sure that your phone setup doesn’t slow you down, you’ll love the flexibility that VoIP offers.

Benefits of Cloud Telephony

What does a problem with your phone system mean for your company? You can lose a customer, miss an important deadline, or terminate an employee due to a communication issue.

It’s no surprise. The way we work has become dynamic and diverse, and we need technology to keep up.

If you want to make sure you never lose a customer, an employee, or your peace of mind because of communication problems, here are cloud telephony benefits you’ll want to know.

1) Quick and easy implementation

Cloud telephony implementation requires no on-site infrastructure. This advantage means you can get up and running within a few days, potentially even within a day.

There’s no waiting for a technician, no installation of phone lines, no delays, and no lengthy process of hiring a full-time employee to configure your new telephony system. Your cloud telephony provider takes care of everything. You’ll instantly get virtual phone numbers and access to a dashboard that allows you to manage the entire phone service.

2) Lower cost of running your business phone system

There are many ways cloud telephony services will save you money. You can save up to 65% of your traditional phone bill. Cloud telephony saves your business from maintenance contracts, limited calling minutes, restrictive local and toll-free phone numbers, and paying for separate business SMS services.

With cloud telephony, there are no unexpected maintenance costs or bills. And if you’re bootstrapped and want to get started as low cost as possible, you can skip buying VoIP phones and use laptops with headsets through a softphone app.

3) Robust, powerful calling features

We’re not talking just about features that look good on paper. Advanced calling features that come with cloud telephony allow you to work smart, be effective, and focus on the right tasks at the right time. You can avoid manual, repetitive tasks and step up your team collaboration and customer support.

Here are some of the most valuable call management features of cloud telephony:

• Auto-attendant, which allows your caller to reach the right team.
• Call forwarding, which directs inbound calls based on predefined criteria.
• Advanced Interactive Voice Response (IVR), a more conversational approach to automated customer service.
• Call forwarding, so that you can forward calls to any desk phone or mobile phone.
• Video conferencing and screen sharing for productive remote meetings.
• Toll-free numbers, which lets customers reach you from landlines without extra toll charges.
• Local numbers, so you can establish a local presence wherever you want.
• Call recording securely and reliably, so you can maintain quality service.
• Contact center, which lets your customer support team resolve questions faster.

Even better, you’ll get these features along with HD audio and video call quality. This is a massive benefit for remote teams. There’s nothing worse in life than a poor-sounding conference call.

Related: What Is a Contact Center? Definition, Features, and Uses

4) Flexibility and scalability of your phone system

Cloud telephony will make growth seamless. More specifically, a VoIP solution will allow you to add more users in just a few clicks.

With traditional PBX, you’d have to pay extra every time you hire a new employee and want to assign them a phone line. Their desk phone needs wiring, which can take a while to set up. Your growth will always bring delays and extra costs if you rely on an on-site phone system.

A cloud-based PBX isn’t just scalable, but it’s effortless to manage. You don’t have to be an IT expert. For example, if your call volume rapidly increases during the year’s busier times, you can easily add and remove lines. This will help you maintain your customer experience thanks to a flexible system you can easily customize as your business needs shift.

5) Increased mobility

Companies are increasingly switching to remote working options over the long haul. Hosted phone systems are the perfect answer to this trend.

Your employees can access their company phone lines wherever they are, as long as they have an internet connection. It’s not just about answering phone calls; they can access their voicemail, and set up or change call routing on the go.

Cloud telephony is the ideal solution for companies that embrace remote work, have satellite offices, or have multiple office locations.

6) Simplify work with integrated communications

Cloud communications help you store and access every piece of information on one platform.

When you use separate systems for your calls and meetings, you have notes and important details in too many places. Computer notes, spreadsheets, Post-It notes, notebooks, and the list goes on. Finding past interactions can take ages and throw everyone out of their flow.

Cloud telephony consolidates everything into a single user interface. You can use it to collaborate with colleagues, manage customers, analyze real-time data, collect feedback, and move important projects forward.

You’ll bring your business communication workflow to a single source of truth and move efficiently through your day. No more frustrating interruptions or time wasted on hunting down crucial information.

7) Superior reliability and resilience

Can you afford to be unavailable to your customers? In case something happens to the power grid, what are the consequences for your business? A wiring issue, overheating, or a small storm can wreak havoc on your communication and reputation.

Reputable cloud telephony solutions provide 99.999% uptime, so you can keep working unaffected no matter what happens. It also has built-in redundancy; in case of jitter or similar issues, your calls stay online, and you always have a backup you can use.

Related: Disaster Preparedness Plan for Business — The CIO’s Action Strategy

How to Choose a Cloud Telephony Provider

If you’re looking to move to a cloud telephony solution, here’s what you need to consider when evaluating your options.

Service quality and proven reliability

High uptime and reliability are a must. Your cloud telephony provider must provide redundant service with redundant data centers. Features and attractive pricing are nothing if your phones won’t work.

What uptime does the provider deliver? Can they ensure you’ll have availability of phone service? Check out your provider’s status page. For Nextiva, you can check status.nextiva.com.

High availability is possible using data centers located strategically across the United States. All of which are equipped with uninterruptible power and have gigabit fiber-optic network connections.

You can also check social media sources like Twitter and Facebook to get an unbiased picture of each provider’s reliability. Searching for the brand on Twitter with the “@” before their name helps you wade through all brand mentions.

On top of that, you’ll want to make sure your provider offers 24/7 network monitoring so that issues can be flagged and solved before they affect your business.

Security and industry compliance

The next step is making sure the cloud telephony provider meets industry standards. Here are some certifications to look for:

• HIPAA compliance: Vital voice and fax services for healthcare service providers.
• ISO/IEC 20071: The global standard for security threat responses.
• PCI compliance: Securely handle credit card payments with confidence.
• SOC 2 compliance: Incident response plans to protect your privacy and data integrity.

Another thing to check is whether your provider of choice ensures call encryption. Encrypted calls mean you can use Transport Layer Security (TLS) and Secure Real-time Transport Protocol (SRTP) to establish high-grade security in every call.

Features and integrations

What are the business needs you’ll fulfill by adding cloud telephony to your toolkit? This is where phone system features and integrations come in.

Do you make lots of outbound calls or receive many inbound calls? Do you have multiple business locations? Are your customers in the U.S. or internationally? These are a few of the many questions to consider when looking at cloud telephony features. Talk to prospective service providers and learn how they can accommodate your business needs.

You’ll also need to consider how a new phone system will work into your employees’ existing routines and workflows.

Do you need your phone system to integrate with your project management software? What about your CRM? How easy is it to implement and maintain your phone system configuration? Again, these are the questions to think about when looking for prospective service providers.

The true cost of ownership

Pricing often looks great on paper. Then, when you start using the service, you get an unexpected, uncomfortable bill that doesn’t look anything like you saw when signing up.

Look for transparent pricing that outlines everything that’s included in rates and anything you’ll need to pay extra for. Confirm pricing specifics such as:

• The number of users you’ll have on your plan.
• Monthly or annual payment plans (and discounts), if available.
• Is there any required equipment for the service to work properly?
• Flexibility to change plans as your needs change.
• Costs for inbound and outbound calls (on local and toll-free numbers).
• Optional features added à la carte.
• Mandatory taxes, surcharges, and other fees.

Make sure that the pricing you review leaves no stone unturned. Our pricing page provides full transparency on what is and isn’t included in each phone service option.

Fast and efficient customer support

Finally, make sure your provider’s customer service team can help you when you need them.

Look into their support options. Are they available on live chat? Can you call them? Do you need to wait for 24 hours or more until you get an email reply?

Then, consider the answers you get to your questions. Do they take into account your specific situation, or are they generic? Is the support rep taking their time to understand the problem? Is it easy to ask follow-up questions?

You can test a provider’s customer support by taking on a free trial, but you can also get a solid idea by reaching out as a prospect, too. This will give you a solid idea of how your provider can help you grow and improve your entire communication system for many months and years to come.

Move Your Phone System to Cloud Telephony

Cloud telephony will lower your communication costs, enhance productivity, and increase your resilience. It also acts as a single source of truth for business communications.

You’ll gain the most benefits if you choose a reliable, battle-tested cloud telephony provider. Nextiva’s cloud telephony service costs as low as $19.95 per user per month for features that will enhance your entire business.

Don’t take our word for it; Nextiva reviews speak for themselves! If you’ve been on the lookout for a new phone system, look no further.

No customer wants to be left waiting on hold or bounced between multiple agents when they call with an issue.

They expect quick, seamless service from start to finish. As a business, meeting this expectation is critical for boosting customer satisfaction.

One of the most effective tools for managing calls effectively is an automatic call distribution (ACD) system. This sophisticated business phone system feature routes each incoming call to the right agent, providing callers with a smooth, efficient experience.

In this article, we’ll explore how an ACD system works to enhance call center operations. You’ll learn how intelligent call routing and automatic processes help companies deliver exceptional service. We’ll also discuss key benefits of ACD, from reducing hold times to improving agent collaboration.

What Is Automatic Call Distribution (ACD)?

ACD, or automatic call distribution, is a technology used in contact centers to route incoming calls to available agents based on predetermined rules.

You can distribute calls based on caller ID, business hours, support level, and IVR selections. As a result, inbound calls reach the right agent or department quickly and without the caller having to dial a different phone number.

Imagine a customer calling about a specific appliance at a big-box store. ACD can identify keywords and route the call to an agent familiar with that product line, ensuring expert assistance on the first try.

Automatic call distributors prevent unnecessary transfers by getting inbound calls to the appropriate agent with skill-based routing or other distribution methods. And since it reaches the right agent, handle times remain low with improved customer satisfaction.

What Is the Difference Between IVR and ACD?

An automatic call distributor and interactive voice response (IVR) system are related but distinct technologies that together enable efficient call routing and handling. Understanding how they complement one another is important.

An IVR system handles the initial incoming call by presenting the caller with an IVR menu and options via pre-recorded audio prompts. For example:

“Thank you for calling ABC Company. To speak with sales, press 1. For customer service, press 2. For billing questions, press 3.”

Once the caller selects an option by pressing a number on their phone keypad, the IVR system classifies the type of inquiry and passes the call context to the ACD system.

The ACD then uses intelligent call routing algorithms to direct the call to the best-suited available agent. IVR handles initial call classification while the ACD handles optimal routing and agent assignment.

Together, they facilitate quick, streamlined call resolution using context and logic instead of luck and guesswork.

How Does ACD Work?

An automatic call distribution system optimizes call routing using a multi-step process:

1. Classifies incoming calls

The ACD first uses data from the IVR system or dialed number to classify each call by type and purpose. Customer service calls are flagged differently than billing inquiries, for example.

2. Evaluates agent availability

Next, the ACD system checks the status of call center agents to determine availability to handle additional calls. The system determines the order of the call queues based on factors like:

• Agent availability (also known as CTI status)
• Caller wait time
• Agent skills
• Customer data from a CRM integration
• Number of calls already assigned to an agent
• Time spent on prior calls
• Scheduled breaks or shift changes

3. Assigns call priority

With call type and agent status clarified, the ACD can assign a priority level to each call. VIP customers and high-revenue accounts may be placed higher in the queue.

4. Routes call to the best-fit agent

Agent skills play a key role here. The ACD automatically connects the call to an available agent with the appropriate skills and capacity to handle that specific call type.

5. Offers callback option if needed

If no suitable agents are available, the system places the caller on hold and may offer a callback option to preserve their place in the queue. Agents can then make an outbound callback.

6. Call monitoring and agent performance

Finally, built-in reporting is provided through computer telephony integration (CTI) with insights like average handle time, wait times, abandon rates, and other metrics to refine the routing strategy.

Optimizing these steps enables more efficient assignment of calls to available agents. This gets customers’ answers faster while providing managers with better oversight of operational performance.

The end result is higher customer satisfaction through reduced wait times and better first-call resolution.

Related: Call Center Metrics: 24+ KPIs and Tips To Track Performance

6 Types of ACD Distribution Methods

The best ACD routing option for your business depends on three things: 

• What your call center software provider is capable of 
• Which customer experience is most important for your business
• The number of available agents and possibly the time of day 

There are six key ACD distribution methods to choose from.

1) Round-robin

Round-robin call routing is the simplest way to distribute phone calls. Inbound customer calls are distributed in a fixed queue within your team.

Example: If five agents are available, the first incoming call will go to the first agent. After they accept that call, the next one goes to the second agent. Finally, after the fifth agent is busy, the first agent receives a call, and the process starts again.

2) Talk time-based

Talk time-based call distribution aims to ensure that agents talk to callers for the same amount of time of day, so no one agent is taking on more calls than the others. It works similarly in practice to round-robin distribution.

Example: When a call comes in, it will be routed to the agent with the least handle time. When the next call comes in, the same process repeats, and so on. 

3) Fixed order

Fixed order call distribution, sometimes called regular ACD routing, needs a specified order to be determined. That is, calls will be connected to specific agents in the order that you specify.

Example: The policy always insists on routing in hierarchical order if three agents are assigned to the call center. If agents one and two are unavailable, customer calls will be directed to the third agent.

4) Uniform

Uniform call routing sends the inbound call to the agent that has been available the longest. Once they accept a call, they return to the queue until they have the longest available time again. This makes the call volume fairer among staffers, especially for those with a low average handle time.

Example: If you have five agents on your team and agent one took a call seven minutes ago, and agent two received a call 16 minutes ago, the next incoming call will be directed to agent two.

5) Simultaneous

Simultaneous call distribution rings all the available agents’ phones ring simultaneously, thus shortening the call queue. Routing calls this way is ideal when speed is essential to your business. In addition, this minimizes the odds that calls will go to voicemail.

Example: If you have three members of a call group, all of their phones will ring when a new call comes in. The one who answers it first takes the call.

6) Weighted

A weighted call routing plan lets managers set a portion of calls to be routed to specific agents, adding up to 100%. This approach is similar to a sales pipeline for new leads.

Directing calls this way is great for onboarding new employees or routing calls toward your best-performing agents.

Common use cases for weighted routing include weighing calls based on the following: 

• Expertise and skillsets: the agent with the deepest level of expertise will be weighted the highest
• Language skills: agents with certain language skills will get more calls than others
• Customer satisfaction: agents with higher customer satisfaction scores will speak with more callers

Example: You have 100 customer calls coming in and three available agents. The first agent has a 40% weighted call distribution, the second agent has 25%, and the third agent has 35%. Therefore, the call routing policy will deliver 40 calls to agent one, 25 calls to agent two, and 35 to the third agent.

Benefits of ACD 

Almost 90% of customers who reach a call center expect their issue to be resolved in one call. SQM Group, an analytics software company, found that each unavoidable follow-up interaction costs the brand a 15% drop in customer satisfaction.

ACD technologies allow companies to provide excellent, efficient, and consistent call-handling experience that would otherwise require a large manual effort.

Here are some of the main benefits of automatic call distribution (ACD):

1. Efficient call routing: ACD systems can automatically and intelligently route incoming calls to available agents in real time. This ensures callers don’t have to wait unnecessarily and get routed quickly to someone who can assist them.
2. Improved resource allocation: ACD allows companies to effectively manage peaks and valleys in their incoming call volumes. More agents can be scheduled for high volume times while reducing staffing at quieter times, which streamlines workflows.
3. Better reporting and analytics: ACD software provides detailed reporting on call volumes, wait times, agent performance, and more through custom dashboards. This helps identify areas for improvement.
4. Enhanced customer experience: With reduced wait times and quick access to agents, ACD helps enhance the customer experience and satisfaction. Calls get handled efficiently and effectively.
5. Increased productivity: ACD routing and management of calls allows agents to spend more time actually talking and assisting rather than manually handling incoming calls. This drives greater agent productivity.
6. Omnichannel integration: Leading business phone services allow seamless integration across other contact center channels like email, live chat, SMS, and social media. This provides an omnichannel customer experience.
7. Scalability and flexibility: Cloud-based ACD solutions are highly scalable to match rising and falling demand. They also provide flexibility to deploy new routing rules, and analytics tools and to integrate with other systems. This scalability future-proofs investment for companies and preserves brand messaging.

Implementation Challenges With ACD

Cost

Deploying a robust ACD system requires investment in software, hardware, and potentially consulting services. While the long-term benefits outweigh the initial cost, it can be a barrier for smaller businesses.

Training

Agents need thorough training on using ACD effectively, including navigating features and adapting to new workflows. Inadequate training can lead to glitches and hinder initial adoption.

Disruption

Implementing ACD can temporarily disrupt existing call center routines. Careful planning, communication, and phased rollouts are crucial to minimize downtime and ensure a smooth transition.

But there are ways to maximize ACD’s potential:

• Optimal setup: Tailor ACD settings to your specific call volume, agent skills, and business goals. Analyze call data to optimize routing strategies and queue management for peak efficiency.
• Monitoring and tracking: Regularly monitor ACD performance metrics like agent workload, queue lengths, and call abandonment rates. Use these insights to identify areas for improvement and fine-tune your system.
• Adaptability: Embrace ACD’s flexibility. Update agent skills, adjust routing rules, and integrate new features as your business and customer needs evolve.

How To Choose the Right ACD System for Your Call Center

The right ACD system can significantly improve call center efficiency, customer satisfaction, and overall productivity. Take the time to choose wisely.

Here are some tips for choosing the right ACD system:

1. Determine your call volume needs. Consider the number of agents you need to support, peak call times and seasons, and expected growth. This will help you pick an ACD that can handle your capacity.

2. Consider the types of calls and routing rules needed. Do you need simple rules like round robin or skills-based routing to certain agents? Or more complex priority and overflow rules? Make sure the system supports the call flows you want.

3. Look at reporting and analytics. A good ACD provides historical, real-time, and forecast reporting to help you understand caller information, call metrics, agent performance, service levels, and more. Pick one with robust reporting.

4. Ensure flexibility and scalability. Your needs may change so choose an ACD that allows easy config changes and scaling up/down as needed. Cloud-based systems are often more flexible.

5. Evaluate ease of integration. If integrating with CRM or other systems, make sure the ACD has good integration capabilities and APIs.

6. Consider the total cost of ownership over 3-5 years, not just upfront costs. Subscription cloud systems have lower upfront costs but ongoing subscriptions.

7. Look for an easy-to-use agent desktop. A simple, intuitive interface improves the experience for contact center agents.

8. Don’t underestimate the value of good technical support, training resources, and documentation. Find an ACD vendor that provides solid post-implementation support.

Where Can I Get an Automatic Call Distributor?

We have good news if you have a small business phone system like Nextiva. You don’t have to get separate automatic call distribution software because you likely have some ACD built-in functionality. In addition, select contact center solutions include advanced automatic call distribution.

For those using an older PBX, you’ll have to begin a search for compatible hardware, software, and experts to configure automatic call distribution. The upfront pricing could be pretty high.

Or you can choose a ready-to-use call center solution to handle all calls with the call routing you want. Customer service agents don’t need desk phones; you can launch within weeks, not months. And, the monthly or yearly pricing is significantly lower than it would be with an on-premises system. 

With a seamless IVR and ACD system, you can achieve the ultimate goal for your contact center: keep your customers and agents happy.

Predictive dialers and auto-dialers help you address the time your agents spend not talking to your contacts, which can cost your campaign some cents. In some cases, it might be preferred over using a business VoIP service.

But, it’s important to understand the difference between the predictive dialer and auto dialer so you can choose the perfect solution for each campaign and increase conversions.

This post highlights everything you need to know to decide between a predictive dialer and an auto dialer.

What Is a Predictive Dialer?

A predictive dialer is an outbound calling software that calls multiple people at the same time. It works with the help of AI technology and statistical algorithms to begin dialing numbers even before the agents wrap up the previous call.

As a result, the agents will have another call in the queue after completing the current call. This guarantees that there is no time wasted and that agents can connect with a maximum number of prospects.

What Is an Auto Dialer?

An auto dialer is a type of automated calling software that dials phone numbers, connects a caller (customer or prospect) to the contact center agent, and plays a recorded message. 

Agents must upload a list of leads’ and prospects’ contact information before launching a campaign.  The numbers are then dialed sequentially by the autodialer. And if the call goes to voicemail without being answered, your agent has the option to end it.

Predictive Dialer vs. Auto Dialer: What to Know

An auto dialer simply automates the calling process to deliver messages or connect calls to agents, while a predictive dialer uses algorithms to optimize call timings based on agent availability and other criteria.

While auto dialers are noted for effectively managing the workload by assigning connected calls to available agents, predictive dialers are the favored option for campaigns that aim to maximize connectivity.

Predictive dialer software places a call a few seconds before an agent completes the previous call. It does that by estimating the agent’s call duration and availability. Conversely, an auto dialer dials a number of contacts and connects answered calls to an available representative.

While you have to set up the auto dialer call rate per agent, the predictive dialer estimates and sets the dial rate based on the number of agents, call duration, etc.

An auto dialer is suitable for teams with less than eight agents and campaigns with small contact lists. 

Predictive dialer software is perfect for teams with more than eight agents and outbound calling campaigns with high call volumes and fast turnaround times.

Benefits of a Predictive Dialer

1. It Helps Increase Agents’ Productivity

A predictive dialer dials multiple calls at once. And this implies that a new call will be waiting for the agent as soon as they wrap up an active call. As a result, there is no time wasted.

Additionally, the software will route the call to the appropriate department, saving the agent time from picking up the wrong calls. All of this increases agent productivity while ensuring the highest customer satisfaction. 

2. High Scalability

The ability to add multiple agents or remove agents from a row makes a predictive dialer very scalable. You can use this dialer for a number of marketing campaigns; thus, it’s most suitable for call centers and big organizations.

3. Call Monitoring and Analysis

Monitoring outbound calling campaign calls is difficult, which is why a predictive dialer is helpful. The dialer makes it easier to keep track of calls by providing different metrics, including the total number of dialed calls, the average call duration, the overall duration of the call, etc. All these metrics help supervisors understand how an agent is performing.

4. Customizable List

With a predictive dialer, a user is able to create and customize their own list of customers. And this means any agent can create their own marketing campaigns. The dialer will help them achieve set targets as it makes dialing easier.

Weaknesses of a Predictive Dialer

• Failure of the algorithm could be a risk.
• It poses the risk of abandoned calls if reps take too much time to connect
• Agents must be adept at promptly answering calls after one has ended.
• It performs better with big campaigns because more data is available for the algorithm to use.

Benefits of an Auto Dialer

1. Advertising

An auto dialer helps you effectively carry out advertising campaigns by ensuring that agents pay close attention to leads with high conversion rates.

2. Ensures 100% Utilization of Agents’ Call Time.

Compared to manual dialing, an auto dialer enables you to use an agent’s talk time best. And by reducing the idle time, your agent will be more productive and thus help to increase the call-connect ratio.

3. Keep Constant Interaction With Customers

The primary goal that contact centers should pursue is customer interaction. This is where a good auto dialer software comes in handy. Instead of doing needless tasks, agents can concentrate on taking calls.

Weaknesses of an Auto Dialer

• It does not check to see if an agent is available, leading to dropped calls.
• It needs more than a few outbound calling agents.
• It causes a short wait time before the agents connect to the call.
• It does not always correctly detect answering machines.

Related: Outbound Dialers: Benefits and Essential Use Cases

Optimizing Outbound Calls for Your Call Center

In reality, many businesses’ outbound dialing strategies have been enhanced by the development of predictive and auto dialer software.

Your organization can minimize overall downtime and increase operational efficiency with a scalable VoIP phone system. Integrating dialer software also increases efficiency while helping eliminate idle time and time zone navigation concerns for your call center agents.

You might still wonder, “How can I optimize my outbound calling strategy once I decide on an auto dialer software?” For more questions about predictive dialers, check out this set of FAQs.

Here are some strategies for optimizing outbound calls to increase sales and revenue while maintaining a positive call center environment.

1. Personalize Scripts

Sales scripts act as a blueprint for your outbound call. They decide why you are placing the call in the first place and leave the rest up to you to improvise.

Scripts are a useful tool that can work for or against your company. The solution to ensuring that your reps don’t rely on scripts too heavily or come off as overly scripted, train your sales and support reps on how to pull up data from your CRM and use it to personalize calls.

2. Use a Variety of Channels for Awareness Campaigns

 Customers that consider telemarketing calls to be spam will simply hang up. Thus, utilizing email, SMS, and chat instead of only cold sales calls seems more like engagement and relationship-building.

3. Scale Your Call Center

Analyze data from your dashboard, such as average handle time and the number of calls made, to decide how many sales or support agents are required to achieve your goals.

• Set fair, challenging, but realistic quotas for sales and support representatives
• Monitor and analyze call data to determine which representatives are performing effectively and which ones aren’t
• Evaluate your goals carefully, and set metrics and KPIs that are appropriate. Then establish workflows that lead to progress.
• Record and review customer interactions to determine whether sales and support agents take too many or too few calls. 

Learn more about how to scale your call center operations with a predictive dialer system. Talk to a Nextiva expert today.

Nextiva has earned over 17,315 reviews with its unwavering focus on Amazing Service and objectively impressive business communication solutions for companies of any size.

What is Nextiva best for? What do other SMBs and enterprises think of it?

This guide will showcase highlights from thousands of Nextiva reviews, its most-loved features, and facts about Nextiva to consider.

Highlights at a glance:

• Nextiva is a top-rated business communications provider specializing in VoIP phone service, team collaboration, and customer experience tools.
• Customer reviews mention customer support, uptime, text messaging, and overall product features as reasons to choose Nextiva.
• The Nextiva platform provides phone service, contact center software, social media management, and conferencing features.
• Nextiva is among the best-rated VoIP providers, with attractive pricing and 24/7 support.

Nextiva Reviews & Ratings

Across the board, Nextiva upholds a high level of customer service for thousands of companies with its unified communications solution. 

GetVoIP Nextiva Reviews

GetVoIP is among the most reputable review sites for detailed reviews and insights on VoIP, conferencing, contact centers, and team collaboration software. It’s a reliable resource to get a balanced view of how people think about business communication. 

Small business reviews

Todd G.says:

The system is great. Fast updating of people and changes. Support is fast to get online and quick to make changes.

Every time I call for support, they clearly understand my changes, make the changes with a check to verify that all is good. They even have ideas on the changes and can make suggestions that are right in line with my needs.

Pros: Available 24/7 and always has a smile to help.
Cons: None
May 18, 2023

Jay H.says:

I recently helped my company switch over to Nextiva from a different service provider. Nextiva’s resources and staff were helpful, patient, and clear and made the transition nearly seamless.

Since then, the support has been stellar, and the quality of our calls is significantly improved. The team has done a great job of helping specifically tailor the service to our needs as a company.

Pros: Helpful support, quality service, good resources for transitioning from a different provider.
Cons: None.
May 18, 2023

Russell M.says:

Switched [to Nextiva] for its technical support. I have not been disappointed. I don’t have much spare time, and it is a great relief to have good tech support available when I need them so that I don’t have to spend hours trying to solve the problem alone. If you are looking for a responsive company with a great product and great people, look no further than Nextiva.

May 1, 2023

Katy B.says:

We switched over to Nextiva in 2020 during the pandemic, and it’s been a successful switchover for the firm.

We were able to work from home and still receive and make calls from our desktop app or mobile devices without clients noticing the difference we were in the office or home. We even switched over our fax service as well to Nextiva so we could fax from a desktop.

Pros: Mobile App and Desktop Options.
Cons: Park Calls.
April 24, 2023

Randell T.says:

I have been with Nextiva with my business for almost 10 years. They have always been responsive to my needs for support. They are affordable. They can easily scale up or down depending on your business needs.

Since I first joined them as a customer, their product offerings have increased significantly!

Pros: Great support (live and asynchronous), affordable, scalable.
Cons: None.
April 24, 2023

Mid-market and enterprise reviews

Krista K.says:

I have personally used the Nextiva VoIP phone system for the last 5 years and have implemented the Nextiva system for several clients, as well. Our client base is varied across healthcare, government, and other private commercial industries. Each installation has been a bit different, but the Nextiva system is adaptable to the needs of the clients.

The installation project is streamlined, and you truly have a “partner” in the implementation process, as well as after the installation, when needed.

As an admin on the Nextiva system, one can make many of the changes that may be needed to add/delete a user, change call flows or groups, etc; however, if I’d rather have some assistance or just work with support, they are able to assist. Nextiva offers multiple options for support when it is needed – chat, email, online portal access with quick videos, and via phone. They have a support team that is knowledgeable but have an escalation path for more advanced features when needed.

I personally use the Nextiva mobile and desktop app, as do many in my company, as well as our clients.

In short, I’m a fan of the Nextiva system for small to large businesses.

Pros: Value
Cons: App
May 1, 2023

Mark A.says:

We use Nextiva in our organization of 115 staff. It is user-friendly, and the administration portal for setting adjustments is intuitive. The app for the cell phone is very problematic. That is my only complaint. Often at the beginning of the call, there is an echo & the calls drop frequently. I hope Nextiva can fix this at some point in the near future.

Pros: Value
Cons: App
May 16, 2023

Kenyatta C.says:

I enjoy working with the Enterprise team for any setup, configurations, or working to resolve an issue. They are knowledgeable and helpful.

It is a pleasure to receive great customer support and to be shared information for self-service options in the future if needed. This makes myself and my team equipped to manage our services and customers as well.

April 18, 2023

Tiffany K.says:

While a little pricey, our agency appreciates the value we receive from Nextiva. The call recording features and good customer service we get from the 1-800 number make the price worth it. Any time we have had any questions regarding using our phones, Nextiva has gone above and beyond, no matter how small our request was. Thank you, Nextiva!

Pros: Good customer service.
Cons: None.
March 27, 2023

G2 Nextiva Reviews

G2 is a renowned product review platform where businesses discover, review, and manage the technology they need to reach their potential. The review process on G2 is rigorous and transparent, ensuring that every review is from a genuine user without any bias.

Small business reviews

Heather I.says:

What do you like best about Nextiva?
It was exactly what I was looking for; an immediate solution without the headache. I called from a referral, and by the time I got off the phone, I had established a phone system for my agency ready for immediate use.

What problems is Nextiva solving and how is that benefiting you?
I started with a Google Voice number and now I’ve established direct numbers for all my team and a way for them to work from anywhere.

Rating:5 out of 5
June 21, 2023

Management Consultant (Anonymous)says:

What do you like best about Nextiva?
The platform is super user-friendly. Voicemail allows you to record through their software, or you can upload your own recording. The call flows are great for small businesses trying to manage their incoming calls. Callers can be directed to recorded lines for basic information, freeing up time for office staff to do things other than just answering the phone all day.

What problems is Nextiva solving and how is that benefiting you?
We have a remote employee working out of the country, and this allows her to call and text our customers with a local number and allows her to reach us directly via text message without incurring international fees.

Rating:5 out of 5
June 21, 2023

Kaylyn M.says:

What do you like best about Nextiva?
The onboarding agent was extremely helpful and patient, as I didn’t have all the information needed. They explained everything and answered all questions with clear answers!

What problems is Nextiva solving and how is that benefiting you?
Nextiva is being utilized to start our call center infrastructure. It allows us to have one area where we can see and monitor our calls, view reporting, and ensure our agents are providing excellent service.

Rating:5 out of 5
June 15, 2023

Mid-market and enterprise reviews

Raimer E.says:

What do you like best about Nextiva?
In general, I am delighted with Nextiva’s performance. It integrates many advantages for our business, including adapting capacity and communication services as needs arise quickly. It also provides the flexibility to add or remove users, adapt functions and expand the infrastructure without costly hardware investments or complex configuration modifications. One of the outstanding features of this software is its use of encryption technologies, data redundancy and secure servers to safeguard confidential information and ensure uninterrupted service operation.

What problems is Nextiva solving and how is that benefiting you?
Nextiva has revolutionized my business, changing the rules of the game. One of its main advantages is its intuitive user interface, which simplifies the management of all my communication channels, such as calls, videoconferences and messaging, from a single platform; Nextiva also offers me the possibility of adapting my communication preferences according to the specific needs of my company, giving me the required flexibility. In addition, it is vital to mention its excellent integration with other business tools, such as Salesforce, which significantly impacts our workflow’s efficiency.

Rating:4.5 out of 5
June 23, 2023

Bella H.says:

What do you like best about Nextiva?
We love how easy is to get the invoices for our 80 offices, and we love the app.

What problems is Nextiva solving and how is that benefiting you?
We used to pay for so many different services, but now we can have only one service provider.

Rating:5 out of 5
June 13, 2023

Anthony S.says:

What do you like best about Nextiva?
The software is easy to use, provisioning new phones is simple, and the interface is easy to navigate.

What problems is Nextiva solving and how is that benefiting you?
Nextiva offers us a complete VoIP, texting, and call center solution without needing multiple companies and sets of software.

Rating:4.5 out of 5
June 22, 2023

Joshua S.says:

What do you like best about Nextiva?
Any time you need help, they have several channels to assist. There is always a resource or person to help with anything you need. I have not been disappointed.

What problems is Nextiva solving and how is that benefiting you?
Nextiva allows us to centralize all of our remote office telephone systems. This makes it much easier to monitor and manage multiple sites. The phone service itself is also very reliable. Nextiva assists you every step of the way.

Rating:4.5 out of 5
October 14, 2022

Gartner Peer Insights Reviews About Nextiva

When it comes to a review site that caters to the enterprise, look no further than Gartner Peer Insights. This platform is an accumulation of customer reviews and ratings from verified professionals.

Gartner Peer Insights is recognized for its stringent review process, ensuring that all reviews are authentic and unbiased. With that said, let’s dive into what the Gartner Peer Insights reviews have to say about Nextiva.

Small business reviews

Director of IT in Manufacturing says:

Nextiva has been great. I somewhat adopted the system when I took over as Director, but I have been pleasantly surprised by it. Our account manager has been awesome and great to work with. He responds quickly and with at least some sort of solution every time.

What do you like most about the product or service?

The ease of use when creating a new user [and] provisioning new devices The overall administration capabilities.

Rating: 5.0 out of 5
May 5, 2023

Customer Service Manager in Real Estate says:

Personally, I’m sure this tool helps me with client interaction daily since I work directly with appointments coordination between several parties. This is a really effective communication tool indeed.

What do you like most about the product or service?

Easy installation – Really fast and reliable installation process. Great connectivity – A very stable connectivity worldwide. User friendly – Information is very clear and useful for users.

Rating: 5.0 out of 5
May 3, 2023

Director of Technology in Manufacturing says:

Overall Nextiva has been the best VoIP solution I have used. Their customer service is unmatched in the industry

What do you like most about the product or service?

Customer service, integration support, ease of management.

Rating: 5.0 out of 5
November 17, 2022

Mid-market and enterprise reviews

Audit Associate in Healthcare says:

Nextiva has been great. I somewhat adopted the system when I took over as Director, but I have been pleasantly surprised by it. Our account manager has been awesome and great to work with. He responds quickly and with at least some sort of solution every time.

What do you like most about the product or service?

The ease of using my laptop to answer, transfer, and make calls, all staff are listed in the laptop application so no need for company [phone extensions].

Rating: 5.0 out of 5
March 29, 2023

Office Manager in Business Services says:

Customer service with Nextiva is wonderful! I have no trouble getting assistance when needed, but the portal is very user friendly. I can always find an answer or someone willing to work with me to solve the problem, which doesn’t occur very often! Most recently, I had a billing question and this was investigated and answered promptly.

What do you like most about the product or service?

Easy admin portal navigation, wonderful customer service and quality of calls. The support team chat is one of the easiest to use, with a quick moving queue.

Rating: 5.0 out of 5
October 31, 2022

Reviews Around the Web

U.S. News & World Report

U.S. News is a leading digital news and information publisher. Their assessment not only placed Nextiva as one of the top VoIP providers but named them the best business phone system in 2020, 2021, 2022, and 2023.

Customers can get unlimited calling throughout the U.S. and Canada, a local or toll-free phone number, at least 1,500 toll-free minutes, internet faxing, and voicemail to email notifications with all plans. Nextiva also provides various conferencing options and the ability to schedule meetings through integrations with Google and Outlook. […]

Nextiva provides business customers with three highly customizable service plans: Essential, Professional, and Enterprise. Unlike some VoIP services, Nextiva provides upfront pricing for its plans. Moreover, once you have 100 users, the cost maxes out at $39.95 per month per user. In addition to scalability, Nextiva’s pricing is transparent and easy to calculate.

In 2023, U.S. News named Nextiva the second-best business phone system.

WP Beginner

Small business owners and entrepreneurs have likely visited WP Beginner before. WP Beginner is more than a blog — it’s a hub of tutorials, guides, and product reviews for small businesses using WordPress.

After the company researched several VoIP phone services, it decided to use Nextiva.

Over the last two years of using Nextiva as our unified communication platform, we have come to really appreciate some of their other advanced features like video meetings for conference calls, audio conferencing, and voicemail transcription.

What our team really likes about Nextiva is their high call quality, pretty much 100% uptime, and the fact that we can receive phone calls on the go from our iPhone (iOS), Google Android phones, as well as our tablets & laptops.

Business.com

Starting and running a successful business isn’t easy. That’s exactly what Business.com aims to solve. Their extensive guides and comprehensive reviews help entrepreneurs learn and get helpful business product recommendations.

Nextiva stood out from other business phone services with its new, unified interface that keeps all your customer and employee communications in sync.

Companies can ditch the spreadsheets and use Nextiva trend analysis to increase visibility into past, present and future activities. Indeed, Nextiva’s business intelligence features make it the best small business phone system for analytics and reporting. And with NextivaONE’s desktop apps, users can see a customer’s history, from emails to text messages, without switching applications.

It’s no surprise why Business.com rated Nextiva a solid 9 out of 10 for its user-friendliness, reliability, and overall features.

Facts about Nextiva

• Headquarters: Scottsdale, Arizona
• People: 1,200
• Conversations: 1.7 billion
• Number of users: 914,000
• Number of businesses: 140,000
• Data centers: 8
• Reliability: 99.999%
• Certifications: SOC 2, PCI, and ISO/IEC 27001
• Customer Rating: 4.44 out of 5
• Funding: $250M, Goldman Sachs

Most-Loved Nextiva Features

Nextiva is renowned for its business VoIP phone system, which is packed with features designed to enhance communication and productivity.

Let’s dive into the top 10 VoIP features users rave about in their reviews:

1. Auto attendant: This IVR phone system feature allows companies to use call flows to automate incoming calls, providing a professional first impression.
2. Advanced call routing: Nextiva’s intelligent call routing ensures no call goes unanswered, optimizing customer service. Direct inbound calls to your support or sales team based on your set criteria using its award-winning contact center solution.
3. Mobile app: The NextivaONE VoIP app lets users stay in touch with customers and team members anywhere, making business communication seamless and efficient.
4. Business SMS: Nextiva provides built-in business text messaging (SMS) support that works across all cellular carriers. It lets users send texts from their business phone lines.
5. Video conferencing: Nextiva offers high-quality voice and video conferencing, facilitating effective team collaboration. Easily join a conference call with a click with the Nextiva desktop or mobile app.
6. Voicemail to email: Get an accurate voicemail transcription and attachment directly to users’ emails so they never miss details when they’re busy. This way, users can streamline how they check their missed calls without wasting time.
7. Platform integrations: Integrate your preferred business collaboration tools with Nextiva, enhancing its functionality and usability for your whole team. Nextiva integrates with Salesforce, Oracle Sales Cloud, HubSpot, and Microsoft Outlook.
8. Call recording: Record business calls in the cloud for quality control and training purposes. Record and store phone calls securely for up to six months. 
9. Business phone numbers: Nextiva walks new users through picking business phone numbers and transferring (porting) their existing numbers at no charge. Its onboarding team ensures your lines are always operational.
10. Amazing Service: Whenever you need a second opinion or want some help setting up a phone feature, Nextiva includes 24/7 customer support with every plan.

In addition to these helpful features, Nextiva provides free online faxing, a complementary toll-free business number, and Microsoft Outlook integration, making it a smart choice for business owners. 

Why Nextiva Tops the VoIP Industry

We could rattle off a bunch of reasons why we’re the best VoIP provider for businesses. Or, we could let our customers share the top four reasons why Nextiva earns its high praise.

1) One platform to power their business

When you have your company’s communications in one place, you not only save time but also have the context you need to manage all of your customer and team conversations.

All Nextiva customers get unlimited nationwide calling. But on its Enterprise plan, they get unlimited conference calls, screen sharing, and call recording.

This way, small business owners get the insight to provide stellar customer experiences.

2) Ease of use keeps everyone happy

You don’t have to be an IT wizard to use Nextiva, with a straightforward onboarding process. They don’t have the time to learn how to set up a phone system from scratch.

3) Outstanding customer support

No matter where you get your business phone service, you’re going to have questions. Even IT staff get stuck sometimes. Nextiva support is there for your team whenever they need a second opinion or a refresher on using its phone features.

4) Ultra-reliable communications network

Business communications must be reliable and dependable for your customers and your team. It’s why Nextiva has invested millions into developing a multi-point, redundant network engineered for excellent call quality and uptime.

The Bottom Line: Nextiva is the Best Business VoIP Provider

Nextiva clearly stands out as the champion for business VoIP solutions. There are many reasons, but let’s sum it up to a few key points:

• Upholds superior network quality: Nextiva delivers crystal-clear call quality from its actively monitored enterprise-grade network, ensuring every phone call and video meeting is as good as it can be. Every data center meets stringent security standards set by ISO/IEC 27001.
  
• Includes top business features: Nextiva offers a vast array of features, from voicemail-to-email functionality to a powerful IVR, as well as simpler features like call flow builder and auto attendants to keep your business communication online.
  
• Provides more than phone service: Nextiva offers much more than reliable cloud phone service. It now has social media management and reputation monitoring as a part of its product suite. These features are a must-have for any company to build its brand and help its customers — and something you won’t get from RingCentral or Ooma.  

Related: The Top RingCentral Alternatives for Business Phone Service

Among many others, these points have been echoed by the thousands of satisfied customers in their reviews, reinforcing Nextiva’s position as the best choice for VoIP phone service.

Looking for more VoIP provider comparisons? Check out these head-to-head comparisons:

• Nextiva vs. 8×8
• Nextiva vs. Dialpad
• Nextiva vs. RingCentral
• Nextiva vs. Ooma
• Nextiva vs. Vonage

FAQs about Nextiva

Editor’s Note: Customer reviews have been lightly edited for clarity and grammar. Some of the review sites mentioned may earn a fee for helping business owners find the best business phone service for their needs.