Choosing a new phone system can feel like a big decision, especially when you're balancing budgets, supporting hybrid teams and preparing for the UK's PSTN switch-off in 2027.
If your current setup feels outdated, unreliable or expensive to maintain, now is the ideal time to review your options.
Many business owners ask the same questions: how do business phone system work, how does a cloud-based phone system work, and how do you choose the right solution for your organisation?
Here, we explain the main types of business phone systems available, what to consider before making a decision and how switching works in practice.
The way businesses communicate has changed significantly over the last few years.
With more employees working remotely or splitting their time between home and the office, traditional phone systems often struggle to keep up.
At the same time, the UK's Public Switched Telephone Network (PSTN) is being phased out by 2027. This means many older landline systems will no longer be supported.
As a result, businesses are moving towards more flexible, internet-based solutions that offer greater functionality and lower running costs.
There are two main types of business phone systems commonly used by UK businesses: traditional on-premises and cloud-based (hosted VoIP).
Traditional phone systems typically use a private branch exchange (PBX) installed on your business premises, connected to the Public Switched Telephone Network (PSTN) or Integrated Services Digital Network (ISDN). These systems have been the standard for many years, but they are becoming less practical as the UK's PSTN and ISDN networks are being withdrawn. They can also be less flexible for businesses with remote workers, multiple locations or changing communication needs.
Cloud-based phone systems, often called hosted VoIP systems, are the modern alternative. Instead of relying on an on-site PBX, the phone system is hosted securely in the provider's data centres and uses your internet connection to make and receive calls. VoIP, which stands for Voice over Internet Protocol, is the technology that converts voice into digital data so it can be transmitted over the internet.
In practice, this means employees can use their business phone system from almost anywhere with a reliable internet connection. Calls can be made and received using desk phones, laptops, smartphones or headsets, while all users have access to the same features regardless of their location.
Modern business phone systems route calls through an internet connection rather than traditional copper phone lines.
When someone calls your business number, the system directs the call according to the rules you set. Calls can be routed to specific departments, forwarded to mobile devices or sent to voicemail outside business hours.
Understanding how do business phone systems work helps businesses recognise the advantages of modern communication tools. Many systems now include features that improve customer experience and increase productivity without requiring complex infrastructure.
In practice, cloud-based phone systems are designed to be simple. Employees can make and receive calls through a desk phone, mobile app or computer.
Administrators manage the system online, allowing them to add users, update settings and access reporting tools without needing an engineer on site.
This flexibility makes cloud-based systems particularly valuable for businesses with remote teams, multiple locations or plans for future growth. Because the service is hosted externally, organisations no longer need to maintain expensive on-site hardware.
When considering how to choose the right business phone system, start by assessing how your team works today and how your business is likely to develop in the future.
Think about the number of users who need access, whether employees work remotely, how quickly your business is growing and whether you need the phone system to integrate with existing software such as CRM platforms or collaboration tools.
It's also important to consider your available budget and the level of support you expect from your provider.
Before committing to a provider, make sure you understand exactly what's included. Ask the following questions:
Clear answers to these questions can help you compare providers more effectively and avoid unexpected costs.
Many businesses delay upgrading because they worry about disruption.
In reality, switching to a modern phone system is often more straightforward than expected. Most providers can manage the transition process, including number porting, system setup and staff training.
In many cases, you can keep your existing phone numbers, helping to minimise disruption for customers.
A well-planned migration ensures the new system is tested before going live, reducing the risk of downtime and helping employees adapt quickly.
Not sure which system is the right fit? Get a free recommendation from the Keeley Travis team based on your business size, working setup and budget. Get in touch with one of our experts today!
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