Traditional private branch exchange (PBX) systems and cloud-based VoIP systems are the two main types of phone systems for small businesses. Traditional PBX requires hardware, is based on-site, and is mostly used by bigger companies. Small businesses should use VoIP systems that are based in the cloud. It is stored in the cloud, so anyone with an internet connection can use it. VoIP gives your business modern phone system features and is managed on a subscription basis by a service provider.