10 Best IP Phone Systems for Businesses: Features, Costs & Providers

Traditional landline systems can be expensive and difficult to scale, especially for growing businesses with remote teams and multiple locations.

IP phone systems offer a more flexible alternative. By routing calls over the internet instead of the traditional Public Switched Telephone Network (PSTN), they can help businesses reduce costs, support remote work, and access advanced calling features like auto attendants, call routing, voicemail, analytics, and app-based calling.

But not every IP phone system works the same way. Some are cloud-based and easy to manage, while others use on-premise or hybrid infrastructure for more control. This guide compares the best IP phone systems for businesses and explains how to choose the right one based on your size, setup, budget, and communication needs.

Best IP Phone Systems at a Glance

Before we dive deeper into each provider, here’s a quick comparison table.

Provider	Best for	Deployment	Starting price	Key strength	Key drawback
Nextiva	SMBs and growing teams	Cloud-based	$15/user/mo	Easy all-in-one business communication	May be more platform than very small teams need
Avaya	Businesses wanting on-premise or hybrid control	On-premise / private cloud / hybrid	Contact sales	Established IP PBX and UC system	More complex than modern cloud-first tools
RingCentral	UCaaS-focused teams	Cloud-based	$20/user/mo	Mature calling, messaging, and meetings	Advanced features can raise costs
Ooma Office	Small businesses	Cloud-based	$19.95/user/mo	Simple, affordable setup	Less enterprise depth
3CX	IT-led teams	Cloud-hosted / self-hosted / on-premise	$350/year (annual pricing)	Flexible SIP-based PBX	Requires more technical management
Yeastar	SMBs wanting PBX flexibility	Cloud / on-premise	Contact sales	Strong IP PBX options	Less recognizable than larger UCaaS brands
Grasshopper	Solopreneurs and small teams	Cloud-based / virtual phone system	$14/mo	Simple business number and call forwarding setup	Too limited for teams that need full UCaaS or IP PBX control
Zoom Phone	Existing Zoom users	Cloud-based	$10/user/mo	Easy add-on for Zoom-centric teams	Less traditional PBX depth
Vonage	Businesses needing APIs + voice	Cloud-based	$13.99/user/mo	Voice plus communication APIs	Pricing/features may require closer review
8×8	Global or multi-location teams	Cloud-based	Contact sales	Voice, video, messaging, contact center	May be more than smaller teams need

What Is an IP Phone System?

An IP phone system is a business phone system that uses internet protocol technology to make, receive, route, and manage calls instead of relying on traditional copper phone lines.

In plain English, it lets businesses handle phone calls through an internet connection or private IP network rather than the traditional Public Switched Telephone Network (PSTN). Instead of sending voice signals through legacy landlines, an IP phone system converts voice into digital data packets and sends them across a network.

An IP phone system can include:

• IP desk phones that look like traditional office phones but connect through Ethernet or Wi-Fi
• Softphones and mobile apps that let employees make business calls from computers or smartphones
• Call routing, voicemail, caller ID, call forwarding, and extensions
• Auto attendants or IVR menus
• Video calling, SMS, team messaging, analytics, and CRM integrations, depending on the provider

IP phone systems are closely related to VoIP phone systems, and in many business contexts, the terms are used almost interchangeably. The difference, however, is that:

• VoIP refers to the technology that transmits voice over the internet, while an… 
• IP phone system is the broader business setup that uses that technology to manage users, devices, phone numbers, routing rules, and calling features.

Benefits of an IP Phone System

Is it worth scrapping your current phone system in favor of an IP phone system that uses the internet to make calls?

Here are six benefits to keep in mind:

• Lower set-up and maintenance costs. You usually need less hardware and less IT support than with traditional phone lines. Because the system runs over the internet, upkeep is simpler and often cheaper.
• More reliable call handling. If one connection fails, calls can often be forwarded to another device or number. That helps reduce downtime from outages, bad wiring, or hardware problems.
• Remote work friendly. IP phone systems make it easy to route business numbers to mobile phones, laptops, or home setups. That makes them a strong fit for distributed teams and virtual contact centers.
• Easy to scale. Adding a new user is usually as simple as updating the account and installing the app or handset. You avoid the delays and installation work that come with a traditional phone line.
• Better customer experience. Features like call queues and call handling help reduce missed calls and long waits. VoIP-to-VoIP calling can also lower costs for customers and staff.
• Smarter call insights. Many modern systems include transcription, summaries, and searchable call records. That makes it easier to review conversations and turn calls into useful business data.

IP Phone System vs. VoIP vs. PBX

IP phone systems, VoIP, and PBX are closely related, but they don’t mean exactly the same thing.

VoIP is the technology, PBX is the call management system, and an IP phone system is the broader business phone setup that uses internet protocol to handle calls.

Term	What it means	How it’s used
IP phone system	A business phone system that uses internet protocol technology to make, receive, route, and manage calls	The full system, including users, devices, phone numbers, routing rules, voicemail, and calling features
VoIP	Voice over Internet Protocol, the technology that transmits voice calls over the internet or an IP network	The underlying technology that powers many modern business phone systems
PBX	Private Branch Exchange, a system that manages internal and external business calls	Can be traditional, IP-based, cloud-hosted, on-premise, or hybrid
IP PBX	A PBX that uses IP technology to manage business calls	Often used for on-premise or hybrid business phone systems
Cloud PBX	A provider-hosted PBX accessed over the internet	Common in modern cloud-based VoIP phone systems

How IP phone systems compare to traditional phone systems

Traditional phone systems rely on physical phone lines, legacy PBX hardware, and location-based infrastructure. 

IP phone systems use an internet connection or private IP network, which makes them more flexible for remote teams, multi-location businesses, and companies that need advanced call management features.

The biggest difference is that traditional systems are usually tied to office-based hardware, while IP phone systems can support desk phones, softphones, mobile apps, cloud management, and integrations.

Top 10 IP Phone Systems for Businesses

The best IP phone system for your business depends on whether you need a simple cloud-based phone service, an on-premise IP PBX, or a hybrid setup that supports existing infrastructure.

1. Nextiva

Nextiva is a cloud-based business phone system that combines VoIP calling, messaging, video, analytics, and customer communication tools in one platform. It also offers AI-powered add-ons, including XBert AI Receptionist, which can help answer calls, route customers, and reduce manual call handling.

Best for: Small and midsize businesses that want cloud calling, collaboration, and customer communication tools in one platform

Deployment: Cloud-based

Key features: VoIP calling, auto attendant, voicemail transcription, call routing, call queues, analytics, SMS, video meetings, mobile/desktop apps, CRM integrations

Pros:

• Easy cloud-based setup with mobile, desktop, and browser access
• Includes core business calling features like routing, voicemail, SMS, video, and team chat
• Can scale beyond phone service with analytics, customer experience tools, and AI add-ons like XBert AI Receptionist

Cons:

• May be more platform than very small teams need
• Advanced analytics and AI features can increase costs
• Not a fit for businesses that want to manage their own on-premise IP PBX

Pricing: Starts at $15/user/month (Core, annual billing); Engage at $25/user/month; Power Suite CX at $75/user/month. AI add-ons start at $99/month.

⭐ Read Nextiva reviews on G2 (4.5 stars)

2. Avaya

Avaya IP Office is a flexible business communication platform with on-premise, hybrid, private-cloud, and cloud deployment options, while Avaya Cloud Office is the cloud-hosted product for calling, messaging, meetings, and collaboration.

Best for: Businesses that want an established IP phone system with flexible deployment options

Deployment: On-premise / hybrid / cloud-hosted

Key features: IP telephony, unified communication, desk phone support, collaboration tools, call management

Pros:

• Supports on-premise, hybrid, private-cloud, and cloud deployment options
• Strong fit for businesses with existing Avaya hardware or infrastructure
• Offers more deployment flexibility than cloud-only phone providers

Cons:

• More complex to compare and configure than simpler cloud-first VoIP systems
• On-premise and hybrid setups may require partner support or internal IT resources
• Pricing can be less transparent than providers with standard self-service plans

Pricing: Avaya IP Office is typically quote-based. Avaya Cloud Office starts at $20/user/month (Core, annual) or $25/user/month (monthly), up to $35–$40/user/month for higher tiers.

⭐ Read Avaya reviews on G2 (4.5 stars)

3. RingCentral

RingCentral RingEX is a cloud-based business phone system combining calling, messaging, video, SMS, and AI-powered communication tools in one app.

Best for: Businesses that want a mature cloud phone system with calling, messaging, video, and AI collaboration tools

Deployment: Cloud-based

Key features: VoIP calling, auto attendant, IVR, call routing, voicemail, SMS, team messaging, video meetings, analytics, integrations, AI transcription

Pros:

• Combines phone, messaging, video, SMS, and AI features in one platform
• Strong call management features, including auto attendant, IVR, call queues, and routing
• Broad integrations with business tools like Microsoft, Google, Salesforce, HubSpot, and Zendesk

Cons:

• May be more expensive than simpler small-business phone systems
• Some advanced features, integrations, and higher limits require upper-tier plans
• Less suited for businesses that want on-premise or hybrid IP PBX control

Pricing: Starts at $20/user/month (Core, annual); Advanced at $25/user/month; Ultra at $35/user/month.

⭐ Read RingCentral reviews on G2 (4.2 stars)

4. Ooma Office

Ooma Office is a cloud-based business phone system built for small businesses, with VoIP calling, a virtual receptionist, extension dialing, call forwarding, voicemail, and mobile access.

Best for: Simple small-business VoIP

Deployment: Cloud-based

Key features: VoIP calling, virtual receptionist, call forwarding, voicemail, mobile app, desktop app (Pro+), SMS, video meetings (Pro+), call recording, call queues

Pros:

• Simple setup and easy day-to-day administration
• Affordable monthly pricing with no long-term contract required
• Good fit for small offices, local businesses, and teams replacing basic landlines

Cons:

• Less advanced than enterprise UCaaS or contact center platforms
• Some useful features, like desktop app, call recording, and video meetings, require higher-tier plans
• Not ideal for businesses that need deep customization or on-premise IP PBX control

Pricing: $19.95/user/month (Essentials), $24.95 (Pro), $29.95 (Pro Plus). No contract required.

⭐ Read Ooma Office reviews on G2 (4.6 stars)

5. 3CX

3CX is a software-based business phone system that can be hosted by 3CX, self-hosted, or deployed on-premise, with annual license pricing based on simultaneous calls rather than per-user monthly fees.

Best for: IT-led businesses that want flexible PBX control without per-user pricing

Deployment: Cloud-hosted / self-hosted / on-premise

Key features: VoIP calling, SIP trunking, call routing, IVR, call queues, video conferencing, live chat, WhatsApp, SMS, mobile apps, web client, call recording

Pros:

• Flexible deployment options, including hosted, self-hosted, and on-premise
• Annual pricing model based on simultaneous calls instead of per-user billing
• Strong feature set for calling, chat, video, live chat, queues, and remote work

Cons:

• Can require more technical setup and management than simpler cloud phone systems
• Businesses may need to manage SIP trunks, hosting, phones, or partner support separately
• Pricing and plan selection can be harder to compare than standard per-user VoIP plans

Pricing: Annual licensing starts at $305/year (PRO, 4 SC) or $380/year (ENT, 4 SC), based on simultaneous calls, not per-user fees. Hosting adds $250–$850/year. Free SMB tier supports up to 10 users. 

⭐ Read 3CX reviews on G2 (4.4 stars)

6. Yeastar

Yeastar’s P-Series PBX lineup offers cloud, software, and appliance-based editions for small and midsize businesses needing IP telephony, call management, and unified communications.

Best for: SMBs that want flexible PBX deployment options

Deployment: Cloud-based / self-hosted / on-premise appliance

Key features: VoIP calling, SIP trunking, auto attendant, IVR, call routing, call queues, voicemail, call recording, video conferencing, web/mobile/desktop clients, CRM integrations

Pros:

• Flexible deployment options, including cloud, self-hosted software, and on-premise appliances
• Strong PBX feature set for SMBs, including IVR, queues, call recording, and unified communications tools
• Supports bring-your-own SIP trunks and compatible IP phones

Cons:

• Can require more technical setup than simpler cloud-only business phone systems
• Pricing may vary by edition, deployment, subscription plan, partner, and hardware needs
• Less mainstream brand recognition than larger UCaaS providers like RingCentral or Nextiva

Pricing: Pricing varies by edition and deployment; contact Yeastar or a reseller for a quote. P-Series Appliance hardware starts around $999 for the P550.

⭐ Read Yeastar reviews on G2 (4.8 stars)

7. Grasshopper

Grasshopper is a virtual phone system for entrepreneurs and small businesses that want a separate business number with simple call management, texting, voicemail, and extensions, without replacing existing phones.

Best for: Solopreneurs and small teams

Deployment: Cloud-based / virtual phone system

Key features: Business phone numbers, unlimited calling (US/Canada), business texting, call forwarding, custom greetings, voicemail transcription, extensions, mobile/desktop apps, virtual fax, 24/7 support

Pros:

• Simple setup with no desk phone hardware required
• Affordable entry point for solo users and very small businesses
• Flat-rate plans can be cost-effective for teams that need multiple users or extensions

Cons:

• Less robust than full business phone systems like RingCentral, Nextiva, or 8×8
• Limited fit for businesses that need advanced call routing, analytics, integrations, or contact center tools
• Not designed for on-premise, hybrid, or hardware-based IP PBX environments

Pricing: Starts at $14/month (True Solo, annual); Solo Plus at $25/month; Small Business at $80/month. Flat-rate plans, not per-user.

⭐ Read Grasshopper reviews on G2 (3.9 stars)

8. Zoom Phone

Zoom Phone is a cloud-based VoIP system built into Zoom Workplace, combining calling, SMS, voicemail, and routing alongside Zoom’s video, chat, and collaboration tools.

Best for: Teams already standardized on Zoom

Deployment: Cloud-based (Native + BYOC options)

Key features: VoIP calling, SMS, voicemail transcription, call recording, call routing, auto attendants, call queues, desk phone support, mobile/desktop apps, Zoom Meetings integration

Pros:

• Strong fit for businesses already using Zoom Meetings or Zoom Workplace
• Combines phone, video, chat, SMS, and collaboration tools in one app
• Supports compatible desk phones from brands like Yealink, Poly, and Mitel

Cons:

• Best value usually comes when paired with the broader Zoom ecosystem
• Advanced needs may require add-ons, higher-tier plans, or careful plan comparison
• Less suited for businesses that want full on-premise or hybrid IP PBX infrastructure

Pricing: $10/user/month (US/Canada Metered), $15/user/month (US/Canada Unlimited, annual), $20/user/month (Global Select).

⭐ Read Zoom Phone reviews on G2 (4.6 stars)

9. Vonage

Vonage Business Communications is a cloud-based platform for calling, messaging, video, and collaboration, with additional contact center tools and communications APIs for programmable or customer engagement workflows.

Best for: Businesses wanting cloud calling and programmable communications APIs

Deployment: Cloud-based

Key features: VoIP calling, SMS, team messaging, video meetings, mobile/desktop apps, voicemail, call routing, admin portal, CRM integrations, contact center options, communications APIs

Pros:

• Combines business phone, messaging, video, and collaboration tools
• Stronger API and contact center ecosystem than many basic VoIP providers
• Offers integrations with tools like Salesforce, Microsoft Teams, Microsoft Dynamics, and ServiceNow

Cons:

• Add-ons can increase the total monthly cost
• Plan and feature comparisons can be less straightforward than simpler VoIP providers
• Less relevant for businesses that want on-premise or hybrid IP PBX infrastructure

Pricing: $13.99/line/month (Mobile, annual), $20.99 (Premium), $27.99 (Advanced). Standard monthly rates are higher.

⭐ Read Vonage reviews on G2 (4.3 stars)

10. 8×8

8×8 is a cloud communications platform combining unified communications, contact center, global telephony, video, messaging, and APIs in one AI-powered system.

Best for: Global teams needing UCaaS and contact-center capabilities

Deployment: Cloud-based

Key features: VoIP calling, team messaging, video meetings, SMS/MMS, call routing, auto attendant, analytics, contact center, workforce engagement, integrations, communications APIs

Pros:

• Combines business phone, messaging, video, contact center, and APIs in one platform
• Strong fit for multi-location or global businesses with broader communication needs
• Offers advanced capabilities across AI, analytics, workforce engagement, integrations, and security

Cons:

• May be more complex than small teams need for basic phone service
• Public pricing is not transparent; 8×8’s current pricing page emphasizes custom packages and quote-based plans
• Advanced contact center, AI, workforce engagement, and global calling needs can increase total cost

Pricing: 8×8’s current pricing page does not publish standard plan prices and instead directs buyers to build a custom plan or request a quote. 

⭐ Read 8×8 reviews on G2 (4.1 stars)

How to Choose the Best IP Phone System

The best IP phone system depends on how your team works, what infrastructure you already have, and which features matter most. Start by narrowing down your deployment model, devices, call management needs, integrations, and security requirements.

1. Choose a deployment model

IP phone systems come in cloud-based, on-premise, and hybrid forms. Cloud systems are easiest to deploy and maintain, on-premise systems give you more control, and hybrid systems combine both approaches.

Type	How it works	Pros	Cons
Cloud-based	Hosted and managed by a provider	Fast setup, lower upfront cost, remote-friendly, easy to scale	Depends on internet quality, less infrastructure control
On-premise	Installed and managed in your office	More control over hardware, configuration, and security	Higher upfront cost, more IT support needed
Hybrid	Mixes cloud and on-premise components	Good for legacy systems and phased migration	More complex to set up and manage

2. Decide on devices

Next, decide how employees will make and receive calls. IP desk phones suit offices and shared spaces, while softphones and mobile apps work well for remote and hybrid teams. Many businesses use both.

3. Compare call features

Focus on features that improve call handling and customer experience, such as voicemail, call forwarding, auto attendants, IVR, call routing, queues, caller ID, recording, and analytics. High-volume teams usually need queues, routing, and analytics most, while smaller businesses often prioritize voicemail, forwarding, and an auto attendant.

4. Check integrations

The system should fit into your existing workflow. CRM, help desk, video, SMS, team chat, and contact center integrations can reduce manual work and improve context for sales and support teams.

5. Review security and support

Security and reliability matter, especially if you handle sensitive data. Look for encryption, secure voice protocols, regular updates, redundancy, disaster recovery, admin controls, compliance support, and responsive customer service.

Which IP phone system is best for your business?

Use this quick guide to narrow your options:

Business need	Best-fit IP phone system
You want the easiest setup	Cloud-based IP phone system
You have a small team or limited IT support	Simple cloud VoIP provider
You already use desk phones or PBX hardware	On-premise or hybrid IP PBX
You want to support remote or hybrid employees	Cloud-based system with mobile and desktop apps
You need more control over infrastructure and security	On-premise or private-cloud IP phone system
You want to keep some legacy phone infrastructure	Hybrid IP phone system
You handle high call volume	Cloud phone system with call queues, analytics, routing, and contact center features
You need advanced customer experience tools	UCaaS or CCaaS-ready platform
You want flexible SIP trunking and PBX control	Software-based or appliance-based IP PBX
You mainly need a business number and call forwarding	Virtual phone system

How Much Do IP Phone Systems Cost?

IP phone system costs depend on the deployment model, number of users, hardware needs, and feature set. Cloud systems usually charge per user, per month, while on-premise systems require more upfront spending on hardware, licensing, installation, and support.

Cloud IP phone system pricing

Cloud VoIP plans are typically sold as monthly or annual subscriptions. Basic plans often start around $15–$30 per user per month, while more advanced plans with call recording, analytics, CRM integrations, or contact center features can cost more.

Cloud pricing is usually best for businesses that want lower upfront costs, provider-managed maintenance, easy scaling, remote access, and predictable monthly billing.

On-premise IP PBX pricing

An on-premise IP PBX system usually costs more upfront because your business owns or manages more of the infrastructure. Typical costs may include:

Cost category	Typical cost range	What it covers
IP PBX appliance or server	$500–$5,000+	Core call management, extensions, routing, voicemail
Software licensing	$100–$300+ per user or extension	User seats and advanced features
Installation and configuration	$1,000–$10,000+	Setup, call flows, routing, testing
SIP trunking	$15–$50+ per trunk/month	Internet-based phone lines
Maintenance and support	10%–20% of system cost annually	Updates, troubleshooting, repairs
Internal or outsourced IT support	Varies widely	Ongoing administration and security

A small office may spend a few thousand dollars upfront, while a larger business with multiple locations and more complex routing can spend significantly more.

IP phone hardware costs

Many systems can run on softphones and mobile apps, but physical hardware often adds to the budget. Common costs include:

Hardware	Typical cost range	Why you might need it
IP desk phones	$75–$300+ each	Receptionists, executives, shared desks
IP conference phones	$300–$1,500+ each	Meeting rooms
Headsets	$30–$250+ each	Sales and support teams
Routers and firewalls	$100–$500+	Secure, reliable voice traffic
PoE switches	$75–$500+	Power phones over Ethernet
Analog telephone adapters	$25–$100+ each	Connect fax machines or legacy devices
Backup internet or power supplies	$100–$1,000+	Reduce downtime

Hidden costs to consider

Remember that the lowest sticker price is not always the lowest total cost. Be mindful of these potential hidden costs:

• Set-up or implementation fees
• Number porting fees
• International calling rates
• Toll-free numbers and minutes
• Advanced analytics or reporting
• Call recording storage
• Contact center add-ons
• AI features or automation tools
• CRM or help desk integrations
• Admin or IT support
• Hardware replacement
• Training and onboarding
• Early termination fees or long-term contract requirements

Time for an Upgrade? Choose Nextiva

Choosing the right IP phone system starts with understanding how your team communicates today and where your business needs to go next.

For some businesses, that means replacing legacy landlines with a simple cloud-based phone system. For others, it means finding a flexible hybrid or on-premise IP PBX that works with existing infrastructure. The best choice depends on your users, devices, call volume, IT resources, budget, and customer communication needs.

With Nextiva, you can move to a cloud-based business phone system that supports calling, video, messaging, mobile access, analytics, and customer engagement tools in one platform. Plans start at $15 per user per month, making it easy to modernize your phone system without the complexity of traditional telecom infrastructure.

IP Phone System FAQs