Which phone system fits your business
Three ways to run business phones, what each one costs you, and the handful of facts that decide between them.
What are your three options?
There are really three choices: a hosted system that runs over your internet connection, equipment you own and keep on site, or plain copper lines from the phone company. For almost every business under a hundred people, hosted is the right answer. The other two are for specific reasons, not defaults.
| Option | What you pay for | Choose it when |
|---|---|---|
| Hosted (cloud) phone | A monthly price per user. Handsets optional. | You want features, remote staff, and no hardware to maintain — the default for most offices |
| On-site system you own | Hardware up front, plus lines and maintenance. | You have unusual call routing, a contact center, or rules that keep calls on your own kit |
| Copper lines | A line rental per line. | You only need one or two lines, or you have equipment that will not work any other way |
What decides it
Count the people who need a phone
Hosted systems are priced per user, so headcount is most of the monthly cost.
Ask where those people are
If anyone works from home or between sites, hosted is the only comfortable answer. It follows the person, not the desk.
Check your internet first
Hosted phones ride on your connection. If it is unreliable, fix that before you move the phones onto it.
List anything unusual
Fax, an alarm line, a lift phone, a card terminal. These often need handling separately.
Features worth paying for
- An auto attendant, if callers currently reach whoever picks up first
- Ring groups, so a call rings several people rather than one voicemail
- Voicemail delivered to email, which is how it actually gets listened to
- Call recording, if you are in a regulated trade
- A mobile app, so out-of-hours calls come from your business number
When to keep what you have
If your current system works, your staff are all in one building, and you are not paying much for it, replacing it is not urgent. The two things that force the decision are a copper line being retired and a move to a new office. Both are worth planning for rather than reacting to.
Last reviewed September 14, 2026
