Common Phone System Types

As discussed previously, there are two main phone system types based on connection: landline and VOIP. However, there are subtypes and hybrid variants you should also know about: Landline phones have practically stopped evolving and will likely go obsolete down the road. If you need to future-proof your communication systems with all the emerging features that will become imperative later on, then going for a robust VOIP system is the right move. With a VOIP service, you can integrate telephony with your business technology platforms such as email, video conferencing, virtual faxing, productivity, employee training, ERP, and CRM software.

Common Phone System Types
  1. Virtual Phone Systems are software-based solutions packaged as browser-based, desktop, or mobile apps that allow you to make and receive calls via the Internet. Also called softphone.
    • Pros:  Affordable and very easy to install, deploy, and use
    • Cons: Not a full-featured phone system
    • Best For: Small businesses on a tight budget and for businesses with staff or contractors deployed in multiple locations.
  2. Landline Phone Systems use copper wires to transmit voice communication. Also called analog phone.
    • Pros: Very stable and reliable
    • Cons: Comparatively costlier to set up, maintain, and scale; Might become obsolete down the road
    • Best for: Small businesses that already have a landline and do not require telephony upgrades; People who likes vintage technology
  3. VoIP Phone Systems transmit voice as data over the Internet.
    • Pros: Wide range of capabilities, features, and software integrations that are critical to most businesses today; can be scaled easily;  affordable
    • Cons: May be disabled in case of power outages unless you have emergency power supply or the provider has fail-safe capabilities
    • Best for: forward-looking businesses of all types, sizes, and industry
  4. Cloud and on-premises systems are VOIP systems whose only difference is the location where the Phone Branch Exchange PBX is hosted. Also called IP-PBX, on-premises systems involve a LAN-connected main server (located in the customer’s location) that receive and transmit calls via a traditional landline as well as the Internet. On the other hand, cloud or hosted PBX systems refer to VOIP systems whose PBX is hosted by the provider.
    • Pros: Cloud-based PBX are generally less costlier to set up and maintain
    • Cons: In on-premises systems, maintaining the PBX is a responsibility of the service subscriber.
    • Best for: On-premises systems are great for teams that seek greater control of their communication tools; Cloud-based systems are good for businesses who do not want to assume the added responsibility of managing their own PBX.


To receive our newsletter please complete the form below. We take your privacy seriously and we will not share your information with others. You can unsubscribe at any time.