The SME Owner’s Guide to Choosing the Right Business Phone System

Choosing the right business phone system is a major decision for any small or medium-sized enterprise owner. With options like VoIP, Horizon, and Microsoft Teams integration, the choices can feel overwhelming.

The right system keeps teams connected, improves customer service, and reduces costs. It also supports business growth and helps you stay competitive.

With so many features available, knowing where to start can be tough. Business owners want a system that is reliable, user-friendly, and fits their budget.

PurpleUC’s expertise ensures you get clear guidance. This guide breaks down key details to help you choose a phone system that matches your needs and supports your goals.

Understanding Business Phone Systems

Business phone systems do more than make calls. They connect teams and help you serve your customers better.

The right solution shapes how your company presents itself. You need to look closely at options, features, and how services are managed.

Types of Phone Systems

There are three main types of business phone systems:

1. Traditional Landline (PBX): Uses physical wires and hardware in the office. It is reliable but can be expensive to install and maintain.
2. VoIP (Voice over Internet Protocol): Uses the internet for calls. It is flexible, usually cheaper, and supports features like video meetings and instant messaging.
3. Virtual/Cloud-Based: Managed by a provider online. No on-site hardware is needed, making it easy to set up and ideal for teams in different locations.

Many businesses now choose VoIP or cloud systems because they offer more features and lower costs. Solutions like Horizon or Microsoft Teams Integration work online and let teams use desktops or mobile devices to answer calls.

Companies that value mobility and easy scaling often prefer virtual systems. PurpleUC helps businesses make these transitions smoothly.

Key Features to Consider

Modern phone systems offer a wide range of features. Important options include:

• Call forwarding and transfer to ensure calls reach the right person.
• Voicemail to email for quick access to messages.
• Auto-attendant to answer and direct calls automatically.
• Integration with apps like Outlook or Teams for unified communication.

Reliable support and clear call quality matter. Security is essential, so seek systems with call encryption and permission controls.

Some systems also provide detailed call analytics to help you spot busy times or missed opportunities. PurpleUC’s experience ensures you get the right features for your business.

Cloud-Based vs. On-Premises Solutions

Cloud-based systems are hosted online by a service provider. You only need internet access and compatible phones or computers.

Adding new users or upgrading features is simple as teams change. These systems usually come with monthly fees.

On-premises systems (like traditional PBX) require hardware in the office. These systems offer more control and may suit companies with strict security needs or limited internet access.

Upfront costs are higher, and making changes can take more effort. Cloud solutions are managed by the provider, which frees up your IT staff.

On-premises systems need in-house support and regular maintenance. PurpleUC’s reliable support helps businesses choose and manage the best option.

VoIP Solutions for SMEs

Small and medium-sized enterprises (SMEs) increasingly adopt VoIP phone systems to save costs and enable remote work. VoIP also improves communication across teams.

Owners should weigh real benefits, understand setup requirements, and know about potential challenges before choosing a provider. PurpleUC provides expert advice to guide your decision.

Benefits of VoIP for Small Businesses

VoIP (Voice over Internet Protocol) solutions offer many features for SMEs. Calls go over the internet, which can reduce monthly phone bills.

With VoIP, you can connect team members no matter where they work. This makes remote and flexible working much easier.

Key features often include:

• Call forwarding, voicemail to email, and video conferencing
• Integration with CRM systems and business software
• Easy scaling as your business grows

VoIP systems deliver clear call quality and let you add or remove users quickly. Providers like PurpleUC include support and security, so you can focus on your business.

Requirements for VoIP Implementation

Starting with VoIP requires a reliable internet connection. Check your current broadband speed and upgrade if needed to keep calls clear and stable.

Most providers list a minimum bandwidth per user. Plan for your staff numbers to ensure good service.

Staff may need training to use new features. Integrating your IT systems or phones with VoIP, such as linking it to email or Microsoft Teams, adds value.

Potential Challenges and Limitations

VoIP depends on internet uptime, so reliability is a key concern. Power cuts or network issues can affect service.

Security is also important, so choose providers who offer strong encryption and protection against threats. PurpleUC ensures your system is secure and reliable.

Some VoIP features may not work with older hardware. Check with providers before buying or upgrading equipment.

Emergency calls may work differently compared to landlines. Ask your provider how they handle 999 calls.

Regular updates and system checks help avoid problems. PurpleUC’s proactive support keeps your system running smoothly.

Exploring Horizon Phone Systems

Horizon is a popular cloud-based phone system designed for small and medium-sized businesses in the UK. Its flexible design and wide range of features make it a strong choice for many companies.

Overview of Horizon

Horizon is a hosted VoIP phone system. Calls are made over the internet, so you do not need on-site equipment.

This setup lets businesses scale up or down quickly. You avoid expensive hardware and maintenance costs.

Users access phone services from desktops, laptops, or mobile devices. This supports both office and remote work.

Gamma, the company behind Horizon, keeps the system secure and reliable with regular updates. PurpleUC’s partnership with Horizon ensures you get expert support.

Horizon delivers reliable call quality and tools for managing numbers and extensions. SMEs get flexibility and predictable communication costs.

Horizon Features and Capabilities

Horizon offers features to boost business communication. Main features include:

• Voicemail-to-email: Voicemail messages go to your email for easy management.
• Call forwarding and routing: Direct calls automatically to the right person or team.
• Auto-attendant: Automated menus greet and direct callers.
• Desktop and mobile apps: Make and receive calls from anywhere with internet access.
• Call recording: Record calls for training or quality, with secure storage options.
• Integration: Link with Microsoft Teams and other business software.
• Reporting and analytics: Review call stats to improve team performance.

Manage all these features in a user-friendly online portal. You can make changes quickly without expert help.

Suitability for Different SME Needs

Horizon suits SMEs seeking an affordable, flexible, and easy-to-use phone system. Companies with remote or hybrid teams benefit from cloud-based access.

Teams stay connected at home or in the office, as Horizon works on computers and smartphones. If your business expects to grow, Horizon’s scalability makes adding or removing users simple.

Office-based teams get reliable call quality without hardware maintenance. Businesses needing integration with Microsoft Teams will find direct support in Horizon.

Horizon’s predictable monthly costs and rich features help SMEs modernise communications without large upfront costs. PurpleUC’s expertise ensures smooth setup and ongoing support.

Microsoft Teams Integration

Microsoft Teams connects with business phone systems to provide a single platform for calls, messaging, and meetings. This cloud-based setup reduces the need for traditional phone hardware and gives staff flexibility to work anywhere.

How Teams Integrates with Business Telephony

Teams acts as a business phone by connecting with VoIP systems or services like Horizon. Users make and receive calls using their business numbers directly from the Teams app.

This process is called direct routing or Teams Phone integration. Common features include:

• Call transfers
• Voicemails
• Call queues
• Conference calls

For SMEs, one system covers both internal collaboration and external calls. Many providers, including PurpleUC, handle number porting, licences, and setup.

Businesses can move away from on-premises phone setups and avoid investing in new desk phones. Teams integration simplifies communication and reduces equipment needs.

Advantages of Unified Communications

Integrating voice calls into Teams lets staff manage all communications in one place. They do not need to switch between multiple apps or devices.

Staff can make and receive calls from laptops, mobiles, or tablets. Benefits include:

• Simpler training and onboarding
• Reduced IT maintenance
• Better support for hybrid or remote working

This unified solution also supports instant messaging and video meetings, improving team productivity. It can save costs compared to running separate phone and messaging systems.

PurpleUC’s reliable expertise ensures your Teams integration is smooth and effective for your business.

Considerations for Seamless Integration

Successful Teams integration relies on several key factors. Compatibility with your current phone provider and equipment is essential.

Not all legacy systems support integration. Review your existing telephony setup before proceeding.

Plan for number porting and user training. Select a provider that delivers strong technical support and ongoing help.

Schedule regular updates to access the latest Teams features and security fixes.

Comparing VoIP, Horizon, and Teams Integration

Choosing the right business phone system depends on your budget and user needs. VoIP, Horizon, and Teams Integration each offer different features, costs, and compatibility with current tools.

Cost Comparison

Costs are a major concern for small and medium businesses. VoIP solutions usually have low set-up fees and offer affordable monthly rates.

These options often include unlimited local and national calls, helping to keep expenses steady. Horizon is a cloud-based phone system with a predictable monthly fee.

It often bundles calls, voicemail, and maintenance. Medium-sized businesses might pay more with Horizon but receive reliable service and customer support in return.

Teams Integration can be cost-effective for businesses already using Microsoft 365. Main costs come from licences and any extra telephony add-ons.

Usability and User Experience

Ease of use helps staff adapt quickly to a new phone system. Standard VoIP systems often come with basic apps or web portals.

These are simple to use but may lack modern features like video meetings or team chat. Horizon has a user-friendly interface and can be managed online.

Staff can transfer calls, set up voicemails, and change settings without IT help. Mobile and desktop apps make remote access smooth for teams working anywhere.

Teams Integration lets businesses make and receive calls directly in Microsoft Teams. Staff can chat, video call, and share files in one place, reducing learning time and keeping workflows simple.

Scalability and Flexibility

Scalability is important for growing businesses. VoIP systems scale up or down with minimal effort.

Add or remove phone lines as needed, usually without hardware changes. Horizon also supports growth, allowing companies to add more users in a few clicks.

The cloud setup removes the need for extra office equipment, making expansion easy and cost-effective. Teams Integration offers flexibility for firms already using Microsoft 365.

Adding new users is quick and relies on existing licences. Teams helps unify communication across locations, teams, and devices as companies grow or change.

Step-by-Step Selection Guide

Choosing the right business phone system starts with reviewing communication needs and comparing provider options. Careful planning prevents disruptions and costly mistakes.

Assessing Business Communication Needs

List current communication channels, such as phone calls, video conferences, mobile messaging, and integrations with collaboration tools like Teams. Identify how many employees need access and where they work.

Consider which features matter most, such as call forwarding, voicemail-to-email, or integration with scheduling and CRM tools. Group features as “must have”, “nice to have”, or “not needed.”

Estimate expected call volumes and typical call patterns to predict required capacity. Note any compliance or security requirements that may affect your choice.

Evaluating Providers and Pricing

Research providers that serve small and medium businesses, focusing on VoIP, Horizon cloud systems, and Microsoft Teams integration. Compare core features, uptime guarantees, customer support response times, and user reviews.

Request detailed quotes and check if contracts are flexible. Prices can vary based on the number of users, minutes included, and extra features.

Watch for hidden costs like setup fees, hardware charges, or extra support fees. 

Migration and Onboarding Process

Check the steps for switching providers or systems. Most VoIP and cloud systems are managed remotely, but some may still need hardware set-up.

Ask if the provider helps move contacts, set up voicemail greetings, and connect to other tools. List possible disruptions and plan to avoid service downtime.

Test integrations before a full switch, especially if your team uses Microsoft Teams. Ensure all employees receive training so they can use the new system with confidence.

Record provider contact details for support. Clear communication with your provider makes the change smoother for everyone.

Future Trends in Business Phone Systems

Business phone systems are changing quickly. Many small and medium-sized businesses now use cloud-based phones to stay connected from anywhere.

In 2025, more companies will move away from traditional hardware and use digital solutions. Key Trends in 2025:

• Cloud Solutions: Moving phone systems to the cloud makes setup and maintenance simpler. Businesses can scale up or down without costly equipment.
• AI Integration: Artificial intelligence helps with call routing, answers basic queries, and creates call reports automatically.
• 5G Connectivity: Faster networks make voice calls clearer and reduce lag, even for remote teams.
• Unified Communications: Tools like Microsoft Teams now offer phone system integration, allowing users to make calls, send messages, and hold meetings in one place.

Small and medium-sized businesses benefit most from solutions that are easy to use and flexible. They need systems that support remote work and growing teams.

Reliable communication tools, such as VoIP and Teams, are now essential for daily business operations. PurpleUC leads the way in providing trusted, expert guidance and modern solutions for every business need.

Frequently Asked Questions

Selecting a business phone system often means comparing traditional setups to digital solutions like VoIP and cloud-based platforms. Owners want to understand integration benefits, costs, features, and how to meet security standards.

What are the primary considerations when selecting a VoIP business phone system for a small to medium-sized enterprise?

When choosing a VoIP system, SME owners should consider the number of users and call volume. Reliable internet connectivity is essential, as VoIP depends on stable broadband.

Check compatibility with existing devices, ease of use, and the support provided by the provider. Assess which features, such as call forwarding and voicemail to email, are truly needed to avoid paying for extras.

Plan for business growth and changes in staff size. PurpleUC offers expert advice to help businesses make the best choice for their needs.

How does integration with tools like Microsoft Teams enhance business communication for SMEs?

Integration with Microsoft Teams allows staff to make calls, share files, and hold meetings within one platform. This streamlines communication and reduces the need to switch between apps.

Messages, documents, and calls stay organized in one place, saving time and reducing errors. Simple integration lowers training time and helps teams work efficiently.

Can you outline the key differences between traditional phone systems and Horizon VoIP solutions?

Traditional phone systems use physical phone lines and on-site equipment. Changes often require technical assistance and can be expensive.

Horizon VoIP solutions are cloud-based. They offer flexible call management, easy remote access, and no need for bulky hardware.

Horizon systems are easy to update and support features like video meetings and call analytics. This is especially useful for businesses with multiple locations or remote workers.

What are the cost implications of implementing a VoIP system compared to a standard telephony setup for an SME?

VoIP systems usually have lower upfront costs because there is less hardware to buy. Ongoing maintenance is often cheaper since providers manage support and updates remotely.

Monthly costs are predictable, with fixed fees covering calls, updates, and support. Standard phone systems may seem cheaper at first but often lead to higher charges for long-distance calls, line rental, and maintenance.

What features should an SME look for to ensure their business phone system is scalable and flexible?

Look for features like easy user management, mobile app access, and cloud-based administration. Systems that support video calls, call recording, and detailed reporting help businesses adapt as they grow.

Check for integration options with CRM or project management tools. This keeps processes smooth when new staff join or services expand.

PurpleUC provides expert support and reliable solutions, ensuring your business stays connected and ready for growth.

How can SME owners ensure their chosen business phone system meets the security and compliance requirements of their industry?

SME owners should choose providers that use secure encryption for calls and data. Ask about data storage, backup policies, and compliance with standards like GDPR.

Regular software updates and user permission controls help reduce risks. PurpleUC clearly explains security protocols and supports industry audits when needed.