Zavee recently moved into our first real office, and one of our biggest challenges was to figure out what kind of telephone system to use. We have only a handful of full-time employees right now, but we will be adding staff rapidly, especially on the sales side. So we needed a phone system that met today’s requirements, but also was easily scalable; didn’t require a lot of time, money or overhead to maintain; and didn’t conflict with our extensive use of technologies such as mobile and Skype. Obviously, cost was also a big factor.
We considered a wide range of options. The three main technologies we looked at were:
- Telephone company services
- Physical private branch exchange (PBX)
- Virtual PBX

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The local phone company could have provided everything we wanted, including maintenance. We could have had an unlimited number of lines, voicemail, call forwarding, conferencing, etc. However, the phone company services were very expensive and configuration was not quite as flexible as we wanted. We probably would have wound up with more landline capability than we needed given our reliance on mobile for inbound calling and Skype for outbound. Still, for a business that has limited needs and a growth path that is well-defined, the phone company might be an option.
We didn’t spend much time considering a physical PBX. A PBX can do everything the phone company can do and more, but they are not cost-effective for small businesses – at least not for this one. Thanks to technology and competition the initial costs of a PBX are trending down, but the total cost of ownership, including maintenance, put a PBX well out of our reach.
We decided to use a “virtual PBX”, which is a Web-based telephone system that provides PBX-like services in a hosted environment. We have multiple lines and several local phone numbers, fax service and full call switching capability without having any hardware (other than handsets) in-house. We use a company called Ring Central but there are many companies in the virtual or hosted PBX space. In addition to much lower costs than either the phone company or a physical PBX, we only pay for what we need. The service is easily scalable, since there is no hardware to replace. Obviously, we don’t have to perform any system maintenance.
With our phone system in place at a manageable cost we feel better about investing in mobile. All of our sales reps will have smart phones as well as wireless-enabled laptops. All of us use mobile as our main phones as well as Skype. Skype is a Web-based application that supports free computer-to-computer voice calls and inexpensive computer-to-phone calls. These two technologies let our sales reps operate from anywhere – they aren’t tied to the office.
What technologies do you use for voice communication? Have you tried Web-based voice applications? Let us know in the comments.