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In 2024, analog phones are virtually a thing of the past, with more and more traditional landlines being replaced with modern, digital alternatives. Most prominent among these is voice over IP (VoIP), a technology that encodes analog sound into digital packets and transmits them over the internet. VoIP solutions have grown so popular that even many residential phone customers now use the technology in their homes, although many don’t realize it. But VoIP has really taken off in the business world, where it has almost completely displaced traditional, analog PBX systems. Modern business VoIP systems often combine voice calling with video, chat, SMS, and integrations with other business software, such as your CRM system. Because of their high versatility, such systems are often referred to as unified communications as a service (UCaaS).In fact, business VoIP systems have become so popular that the market has quickly become filled with an array of options. Some are general-purpose digital calling systems, while others are tailored for specific use cases, such as call centers or industries that require increased security. We’ve sampled and tested leading products in each category to help you make an informed buying decision for your company. Below are our top-rated picks, along with additional information to help guide your choice.
Deeper Dive: Our Top Tested Picks
Intermedia Unite
Best Overall Business VoIP
Why We Picked ItWith Unite, Intermedia offers an excellent VoIP communications system that scales from small to midsize businesses, up to enterprises. The company bundles free phones or related devices (cameras, headsets) with each subscribed seat, and its focus on integrating with third-party software makes it attractive for businesses that want to further support help desks and customer relationship management (CRM).Who It’s ForIf your organization’s looking for a general-purpose VoIP phone system, check out Intermedia Unite. Although it’s not the cheapest business VoIP service in our roundup, it has enough flexibility and features to grow along with your business—enough for it to earn our Editors’ Choice nod. It’s also a good choice if you’re looking for a VoIP system that has tight integrations with Microsoft Teams.
PROS
Unified communications with voice, video, chat, and file sync
Many useful, standard VoIP features
Robust integration with third-party services
New Chrome compatibility
CONS
Mobile app required for importing and initial syncing of contacts
Limited call monitoring features
New Chrome web app doesn’t support Microsoft Edge
SPECS
Name
Value
Voicemail Transcription
Software Phone
SMS Messaging
Automatic Call-Back
Call Monitoring
Voicemail to Email
Electronic Fax
E911 Service
SIP Phone Support
Toll-Free Option
Video Conferencing
Learn More
Intermedia Unite Review
RingCentral MVP
Best for Enterprise-Class Call Volumes
Why We Picked ItRingCentral has long impressed us with its business VoIP offerings. The latest iteration, dubbed RingCentral MVP, stands for “messaging, video, and phone,” which is indicative of its move away from basic voice services toward a UCaaS approach. RingCentral has also proven itself reliable at high call volumes, something that many rival services struggle with when put under pressure. Its AI-backed transcription and call analysis features are particularly impressive. We’re also appreciative of RingCentral’s administration capabilities that give admins many options in an easy-to-navigate UI.Who It’s ForMuch like Intermedia Unite, RingCentral MVP is a well-rounded platform that includes virtually every capability you’d want in a small to midsize business, which is why it also earns our Editors’ Choice badge. For the price, though, we think RingCentral might be more attractive if you’re expecting a relatively high call volume—even its mid-level pricing tiers place no caps on the number of users you can add to your plan.
PROS
Much-improved video conferencing
AI-backed transcription and call analysis
Enhanced collaboration capabilities
Numerous add-on apps
CONS
Limited report customization
Tedious, wizard-based configuration
SPECS
Name
Value
Voicemail Transcription
Software Phone
SMS Messaging
Automatic Call-Back
Call Monitoring
Voicemail to Email
Electronic Fax
E911 Service
SIP Phone Support
Toll-Free Option
Video Conferencing
Learn More
RingCentral MVP Review
8×8 eXperience Communications as a Service
Best for SMB Unified Messaging
Why We Picked It8x8 has gone all-in on UCaaS, as reflected in its new (and somewhat cumbersome) branding. You’ll get a unified experience for all your business calls and conferencing, and 8×8 rolls out new features and updates with a steady cadence. One example is the new Frontdesk feature, which debuted with the latest release. The tool makes it easier for small businesses to emulate the traditional receptionist’s desk.Who It’s ForAlthough 8×8 lacks some of its competitors’ more advanced features, we think it’s still a plucky and fast-moving competitor in the small to midsize business VoIP space. Its focus on UCaaS demonstrates its forward-thinking approach, and should make it attractive to any organization that wants to make the most of what software-based calling and conferencing solutions offer. Its pricing might be more attractive to organizations with tight purse-strings that don’t need all of the features found in our Editors’ Choice winners.
PROS
Lots of features in the base offering, including video conferencing
Improved mobile video from earlier versions
Easy setup for mobile and desktop clients
New Frontdesk feature for receptionists
CONS
Missing productivity features found in other products
Some user settings only configurable using bulk edit
Analytics reports aren’t configurable
Learn More
8×8 eXperience Communications as a Service Review
Vonage Business Communications
Best for a Unified Communications Hub
Why We Picked ItVonage is a VoIP pioneer in both the business and residential markets. Because of its deep roots in the industry, it’s had a chance to build and refine many features that younger players are still trying to iron out. Vonage offers a good selection of third-party software integrations, notably including Salesforce, and it even offers support for companies that want to build bespoke applications that integrate with the platform.Who It’s ForIf your organization absolutely must choose a mature and established provider for your VoIP service, look no further than Vonage. In that sense, Vonage might be the veritable IBM of SMB VoIP. That being said, if your requirements are not so strict, and you’re looking for a VoIP option that might offer a better UI and be easier to self-manage, you might want to look closely at competing services.
PROS
Long list of features for admins and users
New AI-based Virtual Receptionist
Solid mobile and desktop apps
Good training and self-help materials
CONS
Importing contacts requires multiple steps
Add-on features cost extra, and can quickly add up
Learn More
Vonage Business Communications Review
Dialpad
Best for Softphone Users
Why We Picked ItWe like Dialpad’s dedication to its role as a software-based communications service. Although Dialpad supports hardware handsets, its real focus is its softphone, which the company regularly update. In fact, Dialpad says it ships new software updates every two weeks. Frequent updates aren’t always a good thing, but we appreciate the company’s insistence on constantly refining its offering. In particular, it’s another entry in our roundup that’s using artificial intelligence and machine learning to enhance its automatic call transcription capabilities.Who It’s ForDialpad may not be able to go head-for-head with the largest competitors in the business VoIP field, but it still has many features. If you’re interested in a technology-first vendor that strives to regularly innovate, particularly if you’re planning to deploy softphones as your main clients, this low-cost solution might be right up your alley.
PROS
Desktop client acts as a communications hub
AI-based call transcription highlights actionable call content
New geographic call routing feature
CONS
Video conferencing still a $15 add-on for more than 10 meeting participants
No call quality information in the analytics report
Learn More
Dialpad Review
Microsoft Teams Phone
Best for Microsoft 365 Customers
Why We Picked ItTeams is Microsoft’s widely used, all-in-one team collaboration platform, and Teams Phone is the official VoIP add-on for it. As you’d expect, then, it has excellent integrations not just with the other Teams components, but also Microsoft 365. It doesn’t quite measure up to our Editors’ Choice picks, especially in regards to call center functionality. Still, it’s hard to ignore the market leader in office productivity software when it comes to business communications.Who It’s ForDedicated Microsoft shops might not even look further than Teams Phone when choosing a VoIP provider. Its UI is familiar, and it certainly doesn’t hurt that Teams Phone customers receive support from Redmond, as they’re used to. However, if you haven’t already bought into the broader Teams platform for business collaboration, we have a hard time recommending that route if all you’re looking for is a standalone VoIP system.
PROS
Deep integration with Microsoft Teams and Microsoft 365
Detailed call quality metrics with deep insight into the system
Expanded range of local calling plans
CONS
Calling plan still limited to 3,000 minutes (50 hours) per month
Some administration tasks still require PowerShell scripting
Learn More
Microsoft Teams Phone Review
Ooma Office
Best for Legacy Handset Hardware
Why We Picked ItOoma Office isn’t as impressive overall as our Editors’ Choice heavy-hitters, but it’s still a solid choice for small to midsize businesses looking to quickly get a VoIP phone system up and running. It lacks fancy features, such as AI-based transcription and deep integrations with other software, but it’s easy to use and manage. Its latest version adds welcome features—including video conferencing, SMS messaging, and contact syncing—that keep it in the running with competitors.Who It’s ForIf you’re looking for a modestly priced business VoIP system that won’t overwhelm you with a huge catalog of features, Ooma Office might be a good choice. It uses a wizard-based approach to setup and management, which small IT departments will appreciate. If, on the other hand, you’re looking for a feature-packed VoIP system, Ooma may disappoint. Still, if cost is a concern, Ooma is affordable and doesn’t require a contract.
PROS
Flexible service that lacks a fixed contract
Full-featured meetings with no client installation required
Easy to use
CONS
Call-quality reporting is based only on user feedback
Lacks integrated productivity features
Username and password the only authentication option
SPECS
Name
Value
Voicemail Transcription
Software Phone
SMS Messaging
Automatic Call-Back
Call Monitoring
Voicemail to Email
Electronic Fax
E911 Service
SIP Phone Support
Toll-Free Option
Video Conferencing
Learn More
Ooma Office Review
Mitel MiCloud Connect
Best for Traditional PBX Capabilities
Why We Picked ItMitel is a longtime player in business voice communications. As a result, its guiding principle for its MiCloud Connect VoIP system has been to replicate the features of traditional, on-premises PBX systems, such as making it easy to interconnect remote offices. Even when it’s acting as a cloud service, it prefers to have a designated central office so that it can take advantage of a robust LAN. That means it can be harder to set up than some other business VoIP services, but it can offer real advantages in call quality.Who It’s ForTiny shops might want to skip this one. Mitel’s PBX-focused approach suggests it’s better geared for midsize to large businesses. Similarly, highly distributed workforces might not gain as much benefit from MiCloud Connect as they could from other competitors. If, on the other hand, you’re in the process of bringing employees back into a central office, and like the idea of leveraging a well-managed LAN for optimal call quality, Mitel’s offering deserves a look.
PROS
Handy Bluetooth handset
Contact import from CSV plus Google and some Microsoft 365 syncing
Long list of available CRM integrations
CONS
Fixed number of reports and modifying or adding new ones costs extra
Overall costs are incremental and can therefore rise quickly
SPECS
Name
Value
Voicemail Transcription
Software Phone
SMS Messaging
Automatic Call-Back
Call Monitoring
Voicemail to Email
Electronic Fax
E911 Service
SIP Phone Support
Toll-Free Option
Video Conferencing
Learn More
Mitel MiCloud Connect Review
Freshdesk Contact Center
Best for Customer Support, Call Centers
Why We Picked ItFreshdesk’s VoIP offering is a little different than most of the others we’ve tested. Rather than targeting general business communications, it leans heavily toward supporting call centers, such as customer help desks. It integrates with various e-commerce, help desk, and CRM systems, including those provided by Freshdesk itself. It also offers admins an impressive collection of call metrics to help tune and manage a large-scale calling operation.Who It’s ForIf you can’t picture banks of constantly-ringing phones in your offices, and you don’t do direct phone marketing, then Freshdesk Contact Center probably isn’t for you. On the other hand, organizations with high call volumes and that are organized around functions like customer phone support will appreciate Freshdesk’s focus on this area. You’ll especially appreciate its call monitoring and management options that surpass the competitons’ offerings to ensure a high-quality customer experience.
PROS
Easy to configure
Great feature set for a low-cost call center solution
Call transcription support
CONS
Limited support for desktop phone equipment
Lacks external syncing, so contacts must be imported using a CSV file
Transcription only available at the Enterprise pricing tier
Learn More
Freshdesk Contact Center Review
Line2
Best for Very Small Businesses
Why We Picked ItCompared to some of its competitors—and especially our heavy-hitting Editors’ Choice picks—Line2’s cloud business VoIP offering is so stripped down that it almost resembles a residential VoIP service. That said, Line2 is incredibly easy to get up and running, and you don’t need to be a VoIP expert to use it. It lacks the features found in more integrated VoIP systems, such as video conferencing, but it provides well-designed softphone apps that provide basic telephony functions on desktop and mobile devices.Who It’s ForIf all you want to do is provide business phone numbers to your employees, and don’t want the hassle of a full-fledged VoIP system, check out Line2. Just about anyone can set it up, and you won’t need to take time away from more important business tasks to manage it. Just be aware that once your organization starts to grow beyond its earliest stages, you’ll probably find yourself looking for something that offers more features.(Editors’ Note: Line2 is owned by Ziff Davis, PCMag’s parent company.)
PROS
Simple setup
Intuitive softphone client
Includes incoming fax
CONS
Limited reporting; analytics cost extra
Lacks third-party integrations
No video conferencing or collaboration features
SPECS
Name
Value
Voicemail Transcription
Software Phone
SMS Messaging
Automatic Call-Back
Call Monitoring
Voicemail to Email
Electronic Fax
E911 Service
SIP Phone Support
Toll-Free Option
Video Conferencing
Buying Guide: The Best Business VoIP Services for 2024
What Is a VoIP Phone System?Traditional landline phones are a form of analog telephony. VoIP, on the other hand, brings voice calling to the digital age. VoIP systems convert voice calls into network packets and transmit them over the internet or other IP-based networks. Most also include a bridge to traditional phone systems, so the people you call don’t need to use VoIP themselves (nor do the people who call you). In addition, they typically emulate the functions of traditional PBX (private branch exchange) business phone systems, such as conference calling, call routing, and call monitoring.How Much Does a Small Business VoIP System Cost?Today’s small business VoIP systems are billed on a subscription basis. You’ll be charged based on the number of users (phone extensions) you need, on either a monthly or yearly basis. Some vendors require you to commit to a specific term, while others don’t. That said, you’ll usually receive a discount by paying for a full year of service in advance. How much a given service costs per month can range widely. Most offer multiple pricing tiers based on factors like the feature package, the number of users you need to support, and how much you expect to use the service. Among the products we tested, pricing ranged from $15 per user per month at the low end, all the way up to $65 per user per month for an advanced, enterprise-grade product. Most small businesses can expect to pay about $20 per user per month.What’s the Advantage of a VoIP Phone System?VoIP supplanted traditional PBX phone systems because it is less expensive but far more versatile. Even today’s residential VoIP offerings include features far beyond those of conventional telephone systems. In addition to voice calling, most modern VoIP systems integrate other channels and features, including conference calls, call recording, mobile communications, video conferencing, team collaboration, and even social media, earning them the classification of unified communications-as-a-service (UCaaS)—we’ll discuss these in depth, below. These days, most VoIP solutions have evolved into managed, cloud-based services—and with good reason. Moving to the cloud helps reduce costs, increase reliability, and lift the management burden off of your organization’s staff, making cloud VoIP systems a clear winner.How to Choose a Business VoIP SystemWhether this is your first time switching to business VoIP or you’re upgrading an existing system, the sheer number of options can be dizzying. It’s important to remember that while we’ve evaluated the VoIP systems in this roundup based on factors like features, ease of use, and cost, the solution that’s right for your business might not necessarily be the one that looks best on paper.Your first order of business should be to consider just how your company plans—or needs—to use its phones. For example, if your goal is to upgrade an existing PBX, replacing it entirely might not be a viable option, if only because some parts of the system can’t be easily changed over to softphones or even desktop VoIP handsets.
(Credit: d3sign/Getty Images)
For example, suppose you’re operating a heavy manufacturing environment with outdoor activities, such as a steel fabrication yard or a landscaping company. In that case, your rugged old outdoor phones may be just what you need there, and VoIP should only be deployed for office and remote workers.Even for less extreme environments, you should think about the features you’ll need—now and for the future—as well as the ones you don’t. Without careful planning, it’s easy to find yourself paying for capabilities you’ll never use, not to mention unnecessary complexity that makes your phone system hard to manage.One important step in this process is to sit down with all of the stakeholders who will be affected by your eventual decision. Naturally, this includes the IT staff and the data security folks, since your voice calls will now be data communications. However, department heads and employees who use the system to get work done should also have their say, especially those whose work drives revenue and engages customers. You don’t want to hamstring anyone’s activities by skimping on features, but you also don’t want to overwhelm them with options they don’t understand. The best VoIP system for your business will always be one that doesn’t just meet your employees’ needs; your workers should feel comfortable using it, too.What Are Softphones?Traditional VoIP systems use dedicated VoIP phone equipment that sits on your desk and establishes calls via the Session Initiation Protocol (SIP). But VoIP has come a long way since these humble beginnings.One of the most important innovations that modern VoIP systems bring to business communications is softphones. In a nutshell, a softphone is an app that replicates all of the features of a traditional, desktop business phone, and often much more. What you lose in plastic hardware, you gain in functionality, including video conferencing and text chat.At their most basic, softphones let you use the speakers and microphone on your PC, laptop, or other devices to mimic the capabilities of a desktop phone. They also help convey many additional VoIP advantages. Their screen-based interfaces make it easier to switch between communications channels, even mid-call, and they also help the system integrate with other software, such as help desk and customer relationship management (CRM) systems.Mobility adds an additional wrinkle. These days, most workers are accustomed to taking calls on the go. However, using a mobile phone’s built-in calling features means you sacrifice VoIP’s productivity-enhancing features, such as call monitoring, logging, transferring, and integrations with other apps. Many VoIP systems offer softphone apps that run on Android and iOS devices, and in some cases, these apps have full feature parity with their desktop versions. You’ll want to investigate these options thoroughly if your staff includes a significant number of road warriors.Can My Network Handle VoIP?Networking issues have always been a primary concern for any VoIP implementation. VoIP traffic is much more sensitive to network bumps and potholes than most general office traffic, such as web browsing. When a VoIP system is starved for bandwidth, that translates to garbled conversations, difficulty connecting, or dropped and lost calls.Further complicating matters is the ad hoc design of many modern small-business networks. Chances are your small office network might consist of a few wireless routers, rather than dedicated Ethernet jacks at workers’ desks, making monitoring and maintaining traffic quality more difficult.
5 Things to Think About When Choosing a Business Phone System
In the wake of the global COVID-19 pandemic, at least some of your staff are almost certainly working from home, and there’s a good chance that remote work will become a permanent part of modern employment, particularly for small to midsize businesses. Your internal IT staff will have little to no control over these staffers’ home networks. Finally, the business VoIP systems in this roundup are all managed cloud services, rather than on-premises products that mimic a traditional PBX. We think that’s a good thing: Cloud VoIP services can potentially offer greater reliability, easier management, and more features, all at a lower cost than first-generation VoIP systems. But they also increase your reliance on the public internet for the most basic distance communication needs.The upshot of all this is that, unlike your local LAN, there’s little your company can do to control networking conditions on the public internet. Managing your connectivity is almost entirely the province of your network provider—or multiple providers, if your workforce is geographically dispersed. Often, the best you can do is to hope for the best. Check out our roundup of the fastest internet service providers (ISP) to see which might be able to offer you the most bandwidth, and consider subsidizing high-speed connections for your remote workers.Does VoIP Work With Alarm Systems?Another issue worth considering is whether your business currently relies on alarm systems, such as perimeter alarms or motion detectors. Many of these connect to alarm monitoring services via traditional analog phone lines. You may be able to switch these lines to VoIP, but use caution. The digital codecs used to encode voice calls can interfere with electronic signaling devices, such as analog modems, fax machines, and alarm monitoring systems, which have different sound-quality requirements. Consult with your alarm company to see whether they keep a list of VoIP providers they have pre-vetted for this purpose.Sustained power is another factor to consider. Analog phone lines operate on power provided by the telephone company, which is separate from the main energy grid. VoIP lines, on the other hand, need AC power, just like any other digital device. You’ll want to make sure you have backup power available for your network routers, VoIP servers, and any other hardware your VoIP system requires, or you risk having your alarm monitoring service fail in the event of a power outage.
Recommended by Our Editors
What Is UCaaS?So far, we’ve talked about replacing traditional PBX systems with VoIP, but simply switching from analog voice to digital offers only marginal cost savings. Instead, the real value of modern VoIP comes from flexibility and integration features that only software-based communications can bring, which takes us to the fast-evolving field of unified communications-as-a-service (UCaaS).The features offered in any particular UCaaS solution vary widely from vendor to vendor. Still, most include options for video conferencing, shared meeting and online collaboration tools, integrated faxing, and mobile VoIP integration.
UCaaS Projected Market Growth in US Through 2024 (Credit: Statista)
However, where UCaaS really starts to become a game-changer is when it lets your VoIP system integrate with other systems used within your business. For example, it might integrate with your CRM system, letting it recognize a customer’s phone number or some other identifier and automatically pull up the customer’s record for the technician or salesperson answering the call. It could even alert a manager to monitor the call if it’s a critical client.Other popular UCaaS integrations include help desk software and marketing automation tools. Some vendors even offer industry-specific features for certain verticals, such as healthcare. These backend software integrations explain the significant growth in the UCaaS market over the last several years. The concept is constantly evolving to include more communication and collaboration technologies.What’s Next for Business VoIP?VoIP makes the most sense for the vast majority of SMBs, and not just because the costs are lower; VoIP is the only way to keep up with evolving communication trends. Software integration lies at the heart of VoIP and UCaaS, so you can’t make a purchasing decision without thinking about the future. On the one hand, consider each vendor carefully to see what they’ve done over the last half-decade in product development and keeping up with VoIP and UCaaS trends. On the other hand, think about what you’ll need in the next five years.
(Credit: Brian A Jackson/Shutterstock)
At PCMag, we’ve noticed three trends that almost all vendors mentioned as essential to their customers over the last year. That means they’ll be crucial capabilities those vendors will want to add to their platforms in 2024:Network Mobility. Although some VoIP services still offer mobile handsets, these devices seem to be on the downslope. After all, if talking while walking is your goal, why carry a clunky handset when you can speak on your smartphone? Seamless voice switchover based on geofencing is one approach. With it, your smartphone detects that it’s inside your company’s wireless network and seamlessly engages your VoIP client over Wi-Fi, not your cell service. You’ll make and receive calls from your calling plan, as well as your business’s VoIP service. This generally goes beyond simple calls and includes texts, voicemail-to-email, and collaborative online meetings.5G Integration. However, a little further down the road is ubiquitous 5G. When that happens, several VoIP vendors will connect their services to 5G. Workers will then be able to access their business VoIP service wherever they are and across any device as long as it’s 5G compatible. Although some vendors do this with current mobile technology, 4G’s latency limits often deliver a sub-optimal experience. This applies to simple voice traffic, as well as video and collaboration. 5G is the first mobile service that promises the bandwidth necessary to make true mobile UC a reality.Artificial intelligence (AI). If your current phone system uses an automated menu to help route customer calls, or even if it extends its tendrils to your website’s e-commerce features, expect UCaaS vendors to pitch you on artificial intelligence. In addition to the chatbot features we discussed earlier, your vendor can also use AI to detect security issues (see below). It can also work on the reporting and analysis side, so you’ll have a much more granular understanding of call and network quality, call volume, and the apps most affected by your VoIP service.These trends will likely become important selling points in most VoIP vendor-customer pitches over the next several years. Although that’s great, be sure to fully understand what’s being offered and how the vendor will deliver it. For example, is a 5G implementation truly standards-based, or are there some proprietary hardware or software components? How will new security measures affect overall voice performance, and does the vendor fully support the changing security requirements for industry regulations like HIPAA and Sox?If all this seems like a lot to ponder, remember that it’s well worth the effort. Just about anything you can picture a business needing from a phone or collaboration system can be delivered by a hosted VoIP solution at a more affordable price than purchasing and maintaining your own on-premises PBX. It’s just a matter of selecting the right solution for your business.Want to learn more about how to supercharge your business communications? Learn how to Future-Proof Your Business VoIP for Hybrid Work, and check out the Best Video Conferencing Software based on PCMag’s independent tests.
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