IP PBX Meaning | IP PBX Pros and Cons | IP PBX vs VoIP

This article will explain what IP PBX is, what types of IP PBX solutions are available in the market, what some of the benefits and drawback...

This article will explain what IP PBX is, what types of IP PBX solutions are available in the market, what some of the benefits and drawbacks of this type of system are, and what makes IP PBX different when compared with VoIP systems.

IP PBX Meaning

The IP PBX also called Private Branch Exchange over Internet Protocol is a type of system that facilitates communications between various different phone extensions and is connected to the PSTN (Public Switched Telephone Network), enabling telephone extensions to the PSTN, together with providing a source of internal communications for a company.

PBX refers to the traditional, landline-based systems, while IP PBX may refer to both traditional and virtual systems.

Furthermore, virtual versions of the PBX perform the same actions, but by contrast do this via the internet, meaning that there is no need for physical infrastructures, such as phone landlines. 

Calls made and received online are completed via what is referred to as VoIP. This technology provides businesses with the ability to use virtual phone numbers, as well as manage their general communications with their clients online.

IP PBX Pros and Cons for Businesses

PBX Advantages

Quality of Sound - calls placed via landlines deliver high-quality sound and tend to be reliable over time.

Ease of Use - Since PBX systems have been in use for such a long time, many companies have all the hardware they need to upgrade to a virtual version (in some cases, without the need for any additional infrastructure to be installed at all).

PBX Disadvantages

Cost - The traditional cabinets that are used to hold PBX systems tend to be high in cost, but are still essential for day-to-day operations. On top of that, additional costs will accumulate in terms of salaries required for IT staff who will manage these systems, as well as the other monthly charges incurred.

Limitations - PBX systems may only host a particular amount of lines and phone numbers, and adding new ones can be highly expensive. 

IP PBX vs VoIP - Which is Best for Your Business?

It is clear that while PBX solutions still have their uses in today’s business world, they simply do not compare in terms of what virtual systems can do for businesses.

So while there may be many that are divided on the PBX vs VoIP debate, it is clear that more and more companies are adopting or introducing virtual IP PBX servers, even if they still use traditional PBX ones.

There is a range of different companies such as Cisco and Freezvon that offer systems that provide businesses with an IP PBX phone system that is virtual (otherwise known as a Virtual IP PBX).

This system comes with a range of useful benefits that companies can choose to add to their system to improve the customer service experience, together with improving internal communications.

For instance, users can take advantage of the call recording and analytics features, which provide a useful backup location for information (if customer information is misplaced), as well as being able to analyze call times, the number of calls, and other useful metrics that help management teams to assess the performance of their customer service teams.

Companies can also use other features such as SIP technology to divert calls to specific locations. For example, if managers prefer to receive their office calls on their own mobile devices, they can do so via SIP apps!