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How does a Virtual Phone System Work?

How does a Virtual Phone System Work_

Virtual Phone System – In the wake of the COVID-19 pandemic, employers have embraced remote work, with the greatest challenge being their business phone system. This means they need a virtual phone system for enhanced functionality instead of landlines. Traditional phone systems have become irrelevant with this new work-from-home normal. Employees are no longer in the office to take calls and cannot access their desk phones. This further reiterates the need for a virtual phone system to run their business from a cloud-based system.

As it is a new concept for many businesses, most employers are skeptical about its effectiveness. However, here is a detailed guide on what a virtual phone system is, how it works, and its benefits.

What is a Virtual Phone System

A virtual phone system is an advanced communication platform that enables users to make and receive calls through the cloud instead of physical landlines. This platform uses the internet to allow employees to make and receive calls through their mobiles, desktop apps, and desk phones from one business phone number.

Virtual phone systems provide advanced features that make companies opt to move their phone systems to the cloud. These systems enable different company sizes to grow their team while promoting productivity. Therefore, a virtual phone system is a cost-effective way that ensures your team stays connected.

According to statistics, about 40% of companies have their employees working remotely. Therefore, businesses need phone systems that work in and out of the physical office.

How Does a Virtual Phone System Work?

A traditional phone system works from one location, while a virtual phone system uses existing hardware to work from anywhere. As long as the users have an internet connection, they can make and receive calls wherever they are.

Ideally, a virtual phone system connects calls from local phone numbers and toll-free users. The advantage of a virtual phone system is that the company doesn’t need to maintain the switchboard or lines since that is the service provider’s work. Virtual phone systems manage the telecom infrastructure and relations with the Public-Switched Telephone Network (PSTN) and use the Voice over Internet Protocol (VoIP).VoIP means that phone calls don’t depend on hard-wired phone lines but happen over the internet. It converts calls from their initial analog sound using VoIP codecs to provide superior call quality.

VoIP providers prefer to set up redundant data center networks for optimal performance. This allows the efficient flow of communication even when other servers fail due to severe weather. In addition, since virtual phone systems exist on the internet, it is possible to forward calls from the office phone to your smartphone easily.

Further, you can take calls from your computer while working outdoors. In addition, if you are not at work, you can direct your calls to another colleague or receive voicemails via email. As a result, front-end users receive plenty of new capabilities for effective work and collaboration.

You can also route inbound calls to an auto-attendant, also called a phone tree, and exchange messages with customers using the same platform. This makes virtual phone systems more effective and flexible than landlines, which establish connectivity over wired connections.

Benefits of Using a Virtual Phone System

Virtual phone systems are the preferred phone system option for small and large businesses and enterprises for the following reasons:

1. Easy setup

Virtual phone systems are easy to use and set up. Landlines require waiting for an installer to cut holes around the office and run wires, impeding the ability of workers to make or receive calls during this process. And since halting your business is not an option, most companies choose virtual phone systems.

You can begin using virtual phone systems immediately if you have high-speed internet. Once the VoIP phones become available, plug them in and begin using them. Setting up virtual phone services is so easy that you don’t need an IT professional.

2. Low costs

In many cases, businesses pay for communication solutions they hardly use to the maximum, leading to wasting resources. However, a virtual phone system helps you to choose the perfect combination of lines and features for your business. As a result, you can choose a small business plan or a complete office system to get the most value.

In addition, virtual phone systems replace several business apps from the beginning. This means that you can save significantly compared to old-fashioned phone systems. Furthermore, the built-in features in these phone systems save you even more money.

Going virtual is a great way to lower your costs while still enjoying premium features like call forwarding to different locations and extensions, comfort messages and hold music, auto-attendants, custom greetings, detailed inbound and outbound call logs, caller ID management, affordable rates for international calls.

With such advanced features at a low cost, virtual phone systems are excellent options for every business and are budget-friendly for small enterprises.

3. Flexible device options

The traditional phone system allows employees only to take calls through the desk phone. However, your team can comfortably take calls from various devices with VoIP. In addition, a virtual phone system adopts universal standards for interoperability, allowing you to take calls from your IP-based device of choice rather than the desk phone alone.

Such devices include conference phones, wireless VoIP phones, tablets, Ipads, desktops, laptops, and Android and iOS apps. The universal standards allow you to get the perfect hardware for your employees. Also, different job roles require different hardware. For instance, an executive and a support rep have different needs and require different hardware for reliable business calling.

According to research, at least 59% of business professionals use about three devices at work. This means you don’t need to buy any extra equipment since virtual phone systems work with communications devices you are already using.


You only need a strong Wi-Fi signal for a virtual phone system to work. Once you start using this system, you allow your team to benefit from its reliability, superior call quality, and many advanced features that enhance productivity.

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