Ooma vs Vonage: Which Is Better for Small Business?

Ooma and Vonage are two voice-over-internet-protocol (VoIP) telephone services. Each boasts features such as desktop and mobile apps, virtual receptionist services, and call handling options. However, while Ooma is better suited for smaller or growing businesses due to its simplified service, Vonage’s more advanced features make it a better fit for medium to larger companies.

• Ooma: Best for solopreneurs, small businesses, and remote workers
• Vonage: Best for well-established growing and larger companies

Ooma vs Vonage Overview

Takeaway: Both services are well-known for being reliable and user-friendly, but the main difference between the two lies in their features. Ooma is a relatively simplistic service that can be used by almost anybody without much hassle. Vonage is also easy to use and navigate through, but it contains more advanced core features in its most basic package than Ooma does, like do not disturb, busy lamp field, call logs, and click-to-call. It is for this reason that we recommend Vonage for businesses that are well-established or in a phase of rapid growth.

When to Use Ooma

Maintaining a heavy call volume is difficult for solopreneurs, remote businesses, and companies that are on the smaller side. Ooma is ideal for all three. While you must subscribe to a higher-service tier to gain access to its desktop app, you can download and use the mobile app with either plan. There is no need to purchase additional hardware to use the service; since the mobile app is free for all users, this makes Ooma a good fit for companies with many remote workers.

Ooma Pros & Cons

Why Ooma Is the Better Choice for Smaller Companies

• Static pricing: With Ooma, you can choose from the two service tiers (priced at $19.95 and $24.95 per user, per month) and they are set at a specific price, i.e., they don’t change based on how many users you have.
• Build your plan based on your individual needs: With Ooma, you can also purchase add-ons to enhance your package. Depending on the nature of the feature, you either pay a one-time fee or you are charged monthly. Some of these prices include:
  • User extension (which includes a local phone number): $19.95 Base, $24.95 Pro* per extension, per month
  • Additional local phone number: $9.95 per number, per month
  • Toll-free calling plan (1,500 minutes): $15.00 monthly
• Mobile app: All service tiers allow users to make use of Ooma’s mobile app. You can download it whether you have an Apple or Android phone, and some of its notable features include managing your Ooma account, listening to voicemails, and making telephone calls. You must be subscribed to Ooma’s Pro service tier to use the desktop app.

*Ooma’s Office Pro plan is its higher-service tier, offering more advanced features like automatic call recording, enhanced call blocking, and voicemail transcription.

If you’d like to learn more about Ooma and its features and pricing, visit our Ooma reviews page.

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When to Use Vonage

Medium to large companies can get the most out of Vonage. Its desktop and mobile apps are free to download for customers of all service tiers, opening more communication channels between colleagues and clients. Vonage also comes with over 50 advanced stock features with every plan, allowing for more options during your phone calls. Some of these features include voicemail transcription, a virtual receptionist, and call log reports.

Vonage Pros & Cons

Why Vonage Is the Better Choice for Larger Companies

• Pricing is on a sliding scale: Vonage offers pricing on a monthly basis; the more users that you plan to service, the lower the prices are. Pricing is based on a sliding scale and changes based on whether you have one, five, 10, or 20 or more users. For five to 10 users, you can expect to pay anywhere between $17.99 and $37.99 per user, per month.
• Desktop and mobile apps: Unlike Ooma, Vonage grants all users access to both mobile and desktop apps regardless of what service tier you pick. This is ideal for users of every sort, whether they are frequently traveling for work or have a dedicated office computer.
• Video conferencing: One feature that Ooma is lacking is the ability to host a video conference. Vonage lets you schedule meetings directly from whichever app you choose, letting you teleconference with clients and colleagues from wherever you are.

Visit Vonage to learn more about pricing, plans, and a full list of features.

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Ooma vs Vonage: Which Is Better for Businesses?

Since Ooma and Vonage are each better suited for different sorts of small businesses, the answer really comes down to what kind of business you run. While Ooma’s cost-effective system and a good set of core features are attractive to startups, solopreneurs, and very small businesses, Vonage offers much of the same but on a larger scale. In addition, with Vonage, you can build your plan to what is ideal for your setting, and the more employees you serve, the lower the prices are.

That said, while they do have their differences, Ooma and Vonage both have:

• Virtual receptionist: By default, your virtual receptionist is set to answer calls to your main telephone number, but you have the freedom to personalize the menu however it best fits you.
• The ability to use your own device: You have the freedom of using your personal devices such as your smartphone, tablet, or even your computer to use Ooma’s features.
• Mobile apps: These allow you to control and tweak settings no matter where you are directly from your phone.

When to Use an Alternative to Ooma & Vonage

Something that Ooma and Vonage also have in common is that they both come with features that some businesses may not find useful. If you are looking for a more simplistic business phone plan that is easy to use and adds a professional presence to your company, you might find it useful to consider other solutions.

For example, if you are looking for a simpler business phone system, we recommend looking at Grasshopper, a VoIP-based virtual phone service and highly rated alternative, that ranges in price between $26 and $89 per month. It’s perfect for solopreneurs through medium-sized businesses looking for a user-friendly phone service that can be used on your personal smartphone or home office. Register today for your free seven-day trial.

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Frequently Asked Questions (FAQs)

What is a VoIP service?

VoIP is a technology allowing users to place phone calls over an internet connection. It requires no traditional fiber optic wires or analog phone lines, making it a good choice for businesses of all kinds. Some common VoIP features include call recording, call handling options (mute, transfer, and so forth) and voicemail. Depending on which service you choose, you might also have access to unlimited domestic calling and international calls as well.

Do I need an ISP to use either service?

Yes. For both Ooma and Vonage, you will need an ISP already set up to connect services. If you’d like to test your ISP’s current speed, check out our free speed test.

Can I port my existing phone number?

Both Ooma and Vonage allow you to port your existing phone number, and number porting is free with Vonage. Ooma will charge you a one-time fee of $39.99 to port your number.

What kind of international rates are charged?

With Vonage, you can purchase an international calling plan; prices range from $14.99 monthly to $19.99, depending on which plan you choose. Ooma also has a world calling plan, but you can pay by the minute if you’d prefer.

Bottom Line: Vonage vs Ooma

Both Ooma and Vonage provide excellent service and features in their own unique ways. Ooma is ideal for smaller or remote companies thanks to its phone handling features like call recording and auto-attendant services. Vonage is better suited for larger and well-established companies looking to maintain their call volume with more advanced features.

Although each phone service has its perks and drawbacks, ultimately Vonage is our pick for the better of the two. Your price varies on the number of users you have, which means that you will pay less for more users. You also have more features built into your plan with Vonage, like a desktop app and team messaging. Visit Vonage today and learn how to take advantage of your free 14-day trial.

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