Buying a Voice over IP (VoIP) phone system can be challenging. One critical decision that must be made is to determine which is better for your business: a premises-based solution (in which the hardware appliance is kept on-site in your server closet), or a cloud phone system (where your phones connect through your Internet connection to a provider that maintains the equipment at an off-site cloud data center).

A cloud phone system is hosted in the cloud, which means that data is stored in a secure server which you can reach over the internet. A cloud phone system replaces traditional land lines, and is usually hosted by a third party provider like Grasshopper.
Instead of an answering machine tape, phone bills, and tons of wires, a cloud phone system is stored digitally. This makes it less expensive and easy to use. Because of this, it improves the way businesses operate.

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