PBX vs. VOIP Phone Systems

What exactly are PBX and VOIP systems? Back in the olden days, if you wanted a telephone, you only had one option. That option was to call the only telephone company that existed and wait for an installation of what is now called a landline. No questions asked and consumers were glad to have it. Today, there are the options of wireless cell phones, broadband computer access, as well as landlines. Our phones carry the ability to have call waiting, phone conferencing, caller I.D., three-way calling, remote voicemail, and digital cameras. Businesses and individuals now also have the options of systems called PBX and VOIP.

PBX stands for Private Branch Exchange. This is a telephone system that businesses often use. With this system, phone calls would come into the office building and then would be routed to various extensions of departments and employees. There are actual physical lines running to the building from the local utility company, as well as lines running to each phone extension. There is a main control panel which is wired into the office building, as well. With this methodology, there is fairly extensive maintenance and upkeep necessary to keep the system up and running. For many years, this was the cutting edge technology. Today, advancements in technology have created a shift to the VOIP system.

VOIP stands for Voice Over Internet Protocol and pertains to how voices can be transmitted over the internet. This telephone system turns voices into digital data and sends it over the internet. A business owner wouldn’t need to purchase expensive components as it would with the PBX method. All that is necessary is wireless access and a personal computer. Private Branch Exchange will only work when there is a landline that is alive and functioning. The wireless capability of VOIP offers far greater flexibility. Maintenance and upkeep expenses fall upon the server rather than the consumer.

Some larger businesses still prefer to use the PBX system, especially if they have purchased the equipment and already have it up and running. Individuals and smaller businesses are leaning toward the lower cost, maintenance and flexibility of internet accessibility available through the VOIP system.

If your business is in the market for a phone system, check out both the PBX and VOIP telephone systems. Make a list of pros and cons, do a cost analysis for your current and projected business growth in order to make an informed decision.