Managed Voice Services vs. Traditional Telephones For Small Businesses

Written by Kristi Salmon on September 16, 2015.

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Choosing a telephone system for a small business used to be a simple proposition, because there really wasn’t much to choose from. All phones were pretty much the same. As it has for so many aspects of our lives, digital technology has changed all that. Now, when it comes to picking a telephone system, small businesses aren’t restricted to traditional telephones and managed voice solutions has become a preferred alternative. In this blog we compare managed voice services with traditional telephones and list some of the advantages of switching to this newer technology.

First, let’s look at the basic differences between old-fashioned analog and digital telephone systems. Analog phones (the traditional landline) use standard copper wire and what are called plain old telephone service (POTS) phones. Compare that to the latest technology, digital phones. They are used by businesses for managed voice services. A digital PBX (private branch exchange, a switching system that allows a large number of telephones in a business to be connected) is designed with a proprietary bus structure that allows for the addition of various features and capabilities that aren’t available for use with analog phones.  

For small businesses, managed voice services offer innumerable advantages over POTS phones. Voice over Internet Protocol (VoIP) technology can increase the productivity of a small business by allowing its employees to seamlessly multi-task. It allows businesses to integrate software programs – such as email and remote conferencing – over the Internet. An employee can conduct business with a client while simultaneously using other applications, including the Internet. Using VoIP, employees can hold conversations anywhere there is an Internet connection, meaning they aren’t tied down to being at a desk in the office anymore. As an added benefit, outgoing calls display your company’s number on caller ID, rather than an employee’s personal phone number. Employees can check incoming calls no matter where they are. With VoIP, the world truly is your office.

As you can gather from its name, managed voice services truly let you manage your calls more efficiently. For example, with a virtual receptionist you’re not paying a person to answer and route calls – cutting your payroll costs and increasing productivity. 

Gone are the days of poor call sound quality. VoIP technology has evolved to provide voice clarity that is indistinguishable from traditional telephones.

Here are some of the other advantages to small businesses that replace analog phones with a managed voice system:

  • Saving money. Many businesses save as much as 30% when they make the switch from analog to digital.  Long-distance VoIP calls are also relatively cheaper than traditional cell phone calls.
  • Added features. Because managed voice services are software application-driven, businesses can take advantage of features not available with analog phones. These include call blasting, which is also called simultaneous call forwarding. This feature will ring each line simultaneously to reduce wait times for callers. VoIP also lets users conduct virtual meetings, share data via video conferencing and attach documents.
  • Flexibility. If you’re planning on expanding your business, you want a phone system that will grow it. With managed phone services, it’s simple to add lines for new employees – simply enter their information into a web interface and either buy/lease them a phone or install a mobile app on their smartphone.
  • Versatility. An IP phone can be programmed to ring on a cellphone when an external call comes in but route to voicemail for other calls.  Another feature that is popular with small businesses transcribes voicemails in emails or text messages. Users can hold a video chat on a desk phone without having to use a complex telepresence system.
  • Predictable expenses. Voice and data charges appear on one bill and are generally the same amount from month to month. Small businesses usually pay a fee based on the number of concurrent calls that can be made at the same time.
  • No new maintenance expenses. Because no new equipment is needed, there are no new costs for maintenance.


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