Although VoIP phone systems are all the rage now when it comes to business, it wasn't too long ago that PBX systems were the standard. They had the capability to handle the massive telephone needs of big business, while traditional analog setups (those relegated to households) did not. This made PBX the darling of big business. However, that's changing with the advent of VoIP.
PBX versus VoIP explained
The PBX system is basically the "big business telephone" version of the traditional analog set up for homes. PBX stands for "private branch exchange," the telephone system and network for a particular company. The PBX also has "outside telephone" capability through the public switched telephone network, or the PSTN. Within a given PBX network, the phone lines within the company system operate as a sort of small private telephone network; that network also shares a number of outside lines to make external calls outside of the business. Those physical lines come into the building from the utility company, and then physical lines also connect each phone within the building into a central wired main control panel.
VoIP, or voice over Internet protocol, by contrast, simply takes analog signals, those you hear on a traditional phone, and converts them to digital signals that can then be transmitted over the Internet. There's no need for a separate dedicated PBX system, because you can simply utilize existing Internet connectivity to establish company phone systems, without having to set up elaborate networking to do so.
There are many advantages to these systems for business as compared to PBX.
They're more flexible.
Because Internet connectivity is so ubiquitous, you can pretty much have your VoIP system for your office up and running with the simple addition of a router and some fine-tuning, assuming you've already got Internet connectivity. It doesn't take much at all to use VoIP connectivity to get your phone system established. By contrast, you have to set up and carefully wire a PBX system before it's operational.
They're much cheaper to both establish and maintain.
VoIP systems are both much cheaper to establish and easier to maintain. Because, again, they use the Internet connectivity that already exists; it's a simple matter of setting up a router so that you can use your Internet connectivity with your legacy phone system if you wish, and you're in business. There really isn't any maintenance to speak of, unlike a PBX phone system, which can have wiring and other maintenance.
They give you lots of features for free.
With PBX phone systems, you generally have to pay for every feature you use. With VoIP, most features (voicemail, caller ID, call forwarding, etc.) are included, meaning that you simply pay your monthly Internet fee, and there's no extra cost.
They give you better sound quality.
VoIP phone systems generally give you much better sound quality as compared to PBX, especially for long-distance phone calls. That's because VoIP converts analog voice signals to digital data, for crystal-clear connectivity. By contrast, analog or traditional PBX can have less than stellar sound quality.
Your long-distance calls are generally free, too.
Because Internet connectivity is pretty much ubiquitous, using Internet connectivity for phone access means that your long-distance calls are free. PBX, on the other hand, charges for long-distance calls, and international calls can be particularly expensive. While VoIP phone systems may charge nominal fees for international calls, they're still much cheaper as compared to PBX phone systems.
PBX versus VoIP explained
The PBX system is basically the "big business telephone" version of the traditional analog set up for homes. PBX stands for "private branch exchange," the telephone system and network for a particular company. The PBX also has "outside telephone" capability through the public switched telephone network, or the PSTN. Within a given PBX network, the phone lines within the company system operate as a sort of small private telephone network; that network also shares a number of outside lines to make external calls outside of the business. Those physical lines come into the building from the utility company, and then physical lines also connect each phone within the building into a central wired main control panel.
VoIP, or voice over Internet protocol, by contrast, simply takes analog signals, those you hear on a traditional phone, and converts them to digital signals that can then be transmitted over the Internet. There's no need for a separate dedicated PBX system, because you can simply utilize existing Internet connectivity to establish company phone systems, without having to set up elaborate networking to do so.
There are many advantages to these systems for business as compared to PBX.
They're more flexible.
Because Internet connectivity is so ubiquitous, you can pretty much have your VoIP system for your office up and running with the simple addition of a router and some fine-tuning, assuming you've already got Internet connectivity. It doesn't take much at all to use VoIP connectivity to get your phone system established. By contrast, you have to set up and carefully wire a PBX system before it's operational.
They're much cheaper to both establish and maintain.
VoIP systems are both much cheaper to establish and easier to maintain. Because, again, they use the Internet connectivity that already exists; it's a simple matter of setting up a router so that you can use your Internet connectivity with your legacy phone system if you wish, and you're in business. There really isn't any maintenance to speak of, unlike a PBX phone system, which can have wiring and other maintenance.
They give you lots of features for free.
With PBX phone systems, you generally have to pay for every feature you use. With VoIP, most features (voicemail, caller ID, call forwarding, etc.) are included, meaning that you simply pay your monthly Internet fee, and there's no extra cost.
They give you better sound quality.
VoIP phone systems generally give you much better sound quality as compared to PBX, especially for long-distance phone calls. That's because VoIP converts analog voice signals to digital data, for crystal-clear connectivity. By contrast, analog or traditional PBX can have less than stellar sound quality.
Your long-distance calls are generally free, too.
Because Internet connectivity is pretty much ubiquitous, using Internet connectivity for phone access means that your long-distance calls are free. PBX, on the other hand, charges for long-distance calls, and international calls can be particularly expensive. While VoIP phone systems may charge nominal fees for international calls, they're still much cheaper as compared to PBX phone systems.
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