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Tuesday, March 18, 2025

What is a Virtual Phone System?


Businesses have come a long way from knocking door-to-door selling their products and services – even using traditional phone lines sounds obsolete these days, right?    

In the era of AI engagement and innovation, having a good cloud-based virtual phone system can set you apart from the competition, allowing your business to grow smoothly, improve customer service, and streamline your operations.    

All necessary if you want to keep up!    

Continue reading to learn all about virtual telephone numbers, virtual office phone systems and everything you need to know to thrive in the digital age.      

What is a virtual phone system?  

A virtual phone system is a communications solution that allows teams to make and receive calls via the internet with the help of a VoIP service provider. Unlike traditional landlines, these calls are made with the help of software you can download on your laptop or cellphone (like mobile apps).    

Hardware (meaning desk phones, headsets, etc.) is not a requirement to create and use a cloud-based virtual phone system, and since the internet is the steppingstone, your system, and phone number are available to you anywhere in the world.  

You only need a good internet connection. Sounds great, right?    

A virtual business phone system combines the best traditional landlines have to offer with the mobility and freedom only the internet can afford – high call quality, secure lines, and features that create tailored solutions with every functionality your business needs.  

Why should you use a virtual phone system  

Opting for a virtual phone system for business communication sounds like a good idea, but should you really make the change? Again, the first step to making a decision is assessing the pros and cons of a virtual phone service and what the company needs to be successful. 

Let’s explore some of the benefits it can offer you, namely:  

  1. Lower costs  
  1. Easy set up  
  1. Custom phone numbers  
  1. Multiple device options and integrations  
  1. Detailed call analytics  

Benefits of virtual phone system for businesses  

Lower costs  

Most VoIP (Voice over Internet Protocol) providers have lower fees compared to traditional providers. You can also create a virtual phone system that is tailored to your business, meaning you don’t spend your budget on services and features you’re not using.  

Especially if you do business abroad or lead remote teams, having a virtual number and system is beneficial – usually, international calls and upgrades are more affordable, and you can increase savings with easy, hassle-free installations.  

RELATED: Learn how much VoIP can cost for your business  

Choosing a provider like VoIP.ms is handy when creating such systems because we combine high-quality features and low calling fees with a pay-as-you-go pricing model. You pay only for what you need so you can invest in growing your business.    

sign up with voip.ms

 Easy Set Up  

The beauty of virtual phone systems is that they are pretty easy to set up and use.    

Small businesses and startups can set up their own systems smoothly (here’s a guide you can follow!). Bigger enterprises might need some assistance, depending on the type of system you’re creating (extensions, voicemail, auto-attendant, integrations, etc.).    

In comparison, traditional landlines take time to install. You need a professional to set up your phone line, hardware is required, and the process is costly – and we’re not even considering the time your business stay on hold while installation happens.    

Not ideal.   

VoIP.ms makes the process easier – you can create an account for free, port your business phone number, and start using our services and advanced features today. No need to miss deals in the process!  

Custom Phone Numbers  

Say you have an official business phone number but want to expand to other cities. VoIP technology allows you to acquire local phone numbers from cities and countries you want to be in.    

Or you’re looking for a tool-free number, a local number, or a personalized vanity number for your business. You can have those too!    

Why be restricted to one telephone line? You can have as many virtual phone numbers as you need.    

virtual phone numbers

Multiple device options and integrations  

Remote work, work-related travels, meetings across town… A virtual phone system is ideal for businesses for many reasons, but the most important is flexibility.    

You can access your number on your laptop, tablet, mobile phone, or VoIP phone, so you’re never out of reach and never miss a deal or important business calls.    

Does your business also use Microsoft Teams? No problem! Providers like VoIP.ms offer integrations with other famous business-related software, allowing you to fuse communications and streamline processes.    

RELATED: 5 Reasons Why VoIP Solutions Are the Perfect Fit for Scaling Businesses  

Detailed Call Analytics  

Inbound and outbound calls are part of many businesses’ routines (especially when it comes to call centers!), but how can you ensure they work for your business model?    

Virtual office phone systems can create detailed logs with vital information – record incoming calls to train customer service professionals, learn about customer pain points, your busiest season, and more.    

How to choose the best virtual phone system?  

Looking for the perfect virtual phone system provider for your company can be overwhelming.  

Our advice will always be to know your business’ budget, communications needs, and long-term goals before browsing for different providers to ensure the most effective and optimized choice.  

But to make things easier, we came up with a checklist you can have close by:    

Reliability  Was there any downtime in the last two years? Check the providers status page to confirm. Look for 99.99% uptime. 
Features  Assess the ones you need versus the ones you want. VoIP providers can have hundreds of features, so know what your business needs to make a cost-effective decision. Consider API availability and CRM integrations as well. 
Set up  Can you set up the virtual phone system by yourself? Will you need professional support?   
Customer Support  Make sure the provider you choose has good customer support and how you can reach them (phone, email, real-time chat?). 
Budget and Costs  Don’t forget to assess your budget before choosing your provider. Also, remember to look for hidden fees (taxes, E911 activation, etc.), one-time charges, add-ons, and pricing for monthly payments. 
Reputation  Look at online forums (Reddit is a must) and websites like Capterra and GetVoIP to research the provider’s reputation. Do people enjoy using their services? 

Still have questions? Talk to our Sales Team! One of our experts will help you identify your needs and choose the best option to tackle your business’ communications needs.   

Create your ideal virtual phone system with VoIP.ms  

VoIP.ms has everything you need to create the perfect phone system for your business to grow.    

Our Pay-As-You-Go, Bring-Your-Own-Device model makes it easy to use our products and services without interrupting your operations. Learn about our virtual phone number options and ask for portability today (it’s free for U.S. and Canada numbers!).    

FAQ about Virtual Phone Systems  

Don’t see a question you need answered? Ask it directly to our Sales Team!   

Virtual Phone System vs. PBX  

A PBX (Private Branch Exchange) is a traditional phone system that uses analog signals, and can be divided in on-premise PBX, hybrid PBX or cloud PBX. Think of it as a step before virtual phone systems, that convert analog into digital signals and transport them via the internet.    

You can learn more about PBX in this in-depth article, but what you need to know for now is that PBX usually costs more than cloud-based VoIP technology, requires hardware (you can’t use it on your smartphone), and compromises scalability.  

You can’t grow as fast with a PBX phone system.    

What is the difference between VoIP and virtual phone system?  

VoIP is the technology that allows voice communication (a.k.a. phone calls) via the internet. A virtual phone system is a complete telephony system created on top of VoIP technology.    

For a system, you have your phone number and features such as Call Routing, Call Forwarding, Calling Queue, Call Transcription, Digital Receptionist, etc., creating a fully functional communications system that connects your team and facilitates client interaction.    

ivr digital receptionist voip.ms
A look into our IVR (Digital Receptionist) feature.

How does a virtual phone system work?  

Virtual telephone systems use Voice over Internet Protocol (VoIP) technology. A lot is happening backstage regarding VoIP, but what you need to know is pretty straightforward.    

Every time you make a phone call, analog signals are transmitted from the caller to the receiver via the telecommunications network. VoIP transforms these analog signals into digital ones, allowing calls to be made and received online – meaning you can access your business phone number from multiple gadgets, including your mobile device.    

Now, a virtual phone system has more than just the ability to call someone. You can add features, like Call Recording and IVR, to create a more robust communication setup for your company – and these features also depend on VoIP technology.  

How much does a virtual phone system cost for a small business? 

Pricing can vary depending on the number of team members you have, the advanced features the business needs, and even your call volume and seasonality. 

At VoIP.ms, a company with five employees can spend as low as $4 a month considering basic services (phone, fax, messaging, and E911 activation). 

Read our complete VoIP pricing breakdown to understand more about the monthly costs, add-ons, and one-time charges, as well as a comparison table that will facilitate the decision-making process. 



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