Cloud phone systems for beginners

Cloud technology has already transformed how you do business. You can access your email from anywhere on any device because of cloud systems. Cloud-based file storage makes it easier to collaborate with anyone, no matter where they are, or even just access needed documents on the go. You may even have your own private cloud to host your internal database, or could be using a cloud CRM system to track and maintain all your sales activity and customer information.

Business phone systems may sound boring, but the power of cloud phone systems can transform your business. It can enable a number of significant advantages across all areas of your operation.

Let’s learn about the basics of cloud phone systems, including how they work and how they provide the framework for better business communications.

What is a cloud phone system?

A business cloud-based phone system provides the same functionality of a local private branch exchange (PBX), but the system routes calls over your internet connection rather than through traditional copper phone lines.

Voice over Internet Protocol (VoIP) PBX services are hosted on off-site servers, allowing a call from your desk phone to be bridged with any other phone number via an internet connection. Even though the user experience is the same, the behind-the-scenes technology is much different.

The advantages of a hosted VoIP service include access to high-tech features, lower cost than traditional phone service, and easier deployment since you don’t have to run hardwired phone lines.

What does a cloud phone setup look like?

The setup of your cloud phone system will depend on both your business needs and your provider. For example, Ooma Office users can choose between several types of devices and software applications.

• Analog phone communicating through an analog-to-digital adapter

• Ooma Office desktop app for anywhere access from a computer

• Ooma Office mobile app for anywhere access from a mobile device

• IP desk phone connected wirelessly through Wi-Fi

• IP desk phone connected to Ethernet port

• IP conference phone connected wirelessly or to Ethernet port

• Cordless IP phone for roaming access within your business

How do cloud phone systems help improve mobile access?

Businesses often try to supplement their phone system by using their personal mobile phones, and while this does provide the ability to stay connected on the go, it’s not the best idea for several reasons.

One, you and your employees will have to share their private numbers for work purposes. Two, it can blur the lines between work and personal time in ways that can negatively affect work/life balance.

However, having the ability to make and receive business calls through a cloud phone system gives you and your team the best of both worlds.

You can take calls in and out of the office, giving you a continuity that makes your business seem more professional. For example, the Ooma Office mobile app lets you add your office phone as a secondary line on a mobile device. Personal calls will ring on the phone’s native calling app, and work calls will ring via the Ooma Office mobile app, making it easy to tell the difference.

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Callers won’t even know that you’re not at your desk because you can transfer calls, check voicemail and maintain the same level of connectivity.

Resources like the Ooma app guide explain how cloud technology supports today’s mobile needs. A cloud phone system streamlines connectivity, reducing the unnecessary confusion of split communications with different numbers for different devices. It helps employees stay on the ball when they’re away from their desk, and it can be a way to network remote workers into your business phone system.

What else can a cloud phone system do?

The transformational nature of a cloud phone system optimizes many areas of business communications.

These advanced business VoIP features provide a strong communications framework:

• Virtual Receptionist: Automate your incoming calls with a menu system that allows callers to transfer to a specific staff member, a certain department, listen to a pre-recorded status update, or get basic business information such as hours or directions.

• Ring Groups: Avoid missed opportunities when unanswered calls go to voicemail. Calls to a single number will ring on multiple phones in your ring group until someone answers.

• Conference Bridge: Avoid having to use a separate app when conference calling is built right into the existing phone system.

• On-call Functionality: Support your callers better with on-call functions. Businesses can place a caller on hold, transfer callers to another extension, and start a 3-way call. Administrators can set up Shift-to-Text interactions to make a reservation, order an item, or start a claims process.

• Customer Experience: Add functionality to your phone system, like a call or contact center to serve customers better, as your business grows.

• CRM Integration: Sync your customer management database directly with your phone system to improve operational efficiency and the quality of your customer service.

• UCaaS: With unified communications as a service in the cloud, you can use business communications across multiple channels, including integrated messaging and videoconferencing.

• Advanced Analytics: Calling analytics can give you the business intelligence to understand caller sentiment, agent performance, keyword activity, customer satisfaction and more.

• Contact Center: Establish a powerful call center with intelligent call flows, skills-based routing, interactive voice response, intelligent reconnect and more.

What are your cloud phone options?

Choosing a cloud phone system can be complicated. There are many options with varying feature sets to meet a wide range of business and communication needs.

For example, a small start-up with a staff of 10 may want an approach that combines innovative features with ease of use. For these situations, a service like Ooma Office could provide the advantages of cutting-edge communications technology with an easily deployable solution that’s simple to use on any device. It’s flexible, powerful, reliable and SMBs can enable contract employees to work remotely within their business communications system. Moreover, it’s not so cumbersome that you’ll need to call your IT consultant or department for help.

As one real estate agency owner explains, Ooma Office saved the company 30 to 40 percent on its phone service while providing great call quality and ease of use. In fact, many customers save more than $6,000 in just three years. Use the Ooma savings calculator to see how much you could save. Larger businesses that are working at scale may have more complex needs that can be accommodated by a solution like Ooma Enterprise. Systems like this offer unified communications or UCaaS, plus advanced contact center capabilities that are easily customizable to provide the perfect fit for your business protocols and processes. Easy drag-and-drop functionality lets you build customized call flows in minutes. With Ooma Enterprise, the cloud platform enables application integration so you can sync your phone system directly with your other cloud software. It also delivers top quality and security through a global network of distributed data centers.

What are the leading cloud phone system providers?

Cloud-based phone systems have become the standard, and there are some good options out there. We think we offer the best service, but don’t take our word for it. In 2025, PCMag readers rated Ooma as the best in overall satisfaction. Take a look:

Ooma: 9.0

Zoom Phone: 8.5

RingCentral: 8.2

Cisco: 7.8

Microsoft Teams: 7.7

Mitel: 7.2

What distinguishes a top business cloud phone provider?

Two main considerations should influence your decision when choosing a service provider.

The first is call quality. These are phone systems after all, and great, reliable phone service is important. For example, Ooma’s residential phone service uses PureVoice technology that provides crystal-clear call quality. You don’t want a phone system where you can barely hear your callers.

For the past 12 years, Ooma is proud to have been the #1 rated small business VoIP phone system in PCMag’s Business Choice Awards. In 2025, Ooma was also #1 in small business VoIP for home offices and IT-managed phone systems for small businesses!

The second consideration is the ability of the phone service to meet your business’s exact needs. You may not want all the features that are being thrown at you, so it’s important to find a solution that can either be customized to your needs or is easy to change as your business grows. For example, Ooma Office offers multiple tiers and add-ons that you can take advantage of when you need them. If you happen to grow beyond your wildest dreams, you can always consider a service like Ooma Enterprise in the future.

Your business is unique, and your business phone system should be, too. The best system for you is a high-quality one that meets your budget without forcing you to commit to a lengthy contract.