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PBX Versus VOIP Phone Systems

The selection of telephone systems can be a frightening task for business owners. Voice communication is an integral part of organizational success. It is essential to understand what choices out there, educate themselves about each alternative’s choice for your business, and finally, choose the best option.

The traditional telephone system is sometimes referred to as TDM (multiplexer time division) or PBX (private branch exchange), has come a long way. They have turned into digital shipping voice communication and multimedia sessions known as VoIP networks (Voice over Internet Protocol). Industrial experts say two developing trends are the removal of hardware and transforming IP communication for more application-oriented.

What are PBX Phone systems and VOIP Phone Systems?

PBX branch exchanges, or private, are the type of business telephone system. PBX connects all the phones in the office to a single network.

It allows your business to make internal calls for free and transfer-free calls.

With PBX, a company can have more cellphones than telephone lines. Instead of the solid line, it uses extensions to direct calls to business numbers.

PBX telephone systems are traditional analog telephone systems that have been used for decades. When your employees take the phone and call customers, they are physically connected through the Exchange network.

The VoIP phone services uses the Internet to package sound signals into the data package. When employees take the phone to talk to customers, the sound signal is transmitted through your network and then through the Internet.

VoIP phone records your voice and turns it into data. It compresses all the files and turns them into data. These packages then travel to your VoIP provider, where they are converted and connected to the target phone.

It may sound like a long and slow process, but data moves at light speed.

While the first VoIP company struggles to provide low-quality calls, today, VoIP providers support HD voice calls and offer many advanced business phone features.

Difference Between VOIP Phones and PBX Phones?

  • Cost
    When it comes to comparing the costs of two telephone systems, VoIP has advantages in overall costs. Because of the lighter infrastructure load, there are few upfront costs associated with adopting the VoIP system. All your business needs are several phones that support VoIP and internet connection. The VoIP system has a lower monthly bill and a simplified bill because they will be no separate charge for telephone and Internet.
  • Reliability
    PBX system has an advantage when it comes to reliability. Heavy dependence on the Internet with a VoIP system means that if you or your internet service provider (ISP) experience time or bandwidth problems, your VoIP telephone system’s quality will suffer. The bandwidth problem will cause the call quality to be dipped and called to fall. If the Internet goes down locally or outside the site on your ISP, your company’s telephone system will be offline too. Without a backup, power outages will turn off your VoIP system because you no longer have power for your network infrastructure. The PBX system, becoming an independent infrastructure, is not vulnerable to this problem.
  • Flexibility
    VoIP systems are generally seen as more flexible. The VoIP system can add users and capacity based on your changing needs. It is restricted to only your connection and network bandwidth.
    On the other hand, the PBX system is configured by the number of predetermined analog telephone lines. If your company call volume expands or adds additional employees, you might need to buy more capacities from your phone provider. It often requires a different path that is brought to your facility.
  • Quality
    VoIP now usually uses the same audio codec as PSTN to provide HD voice calls. That said, inadequate bandwidth or network configuration errors can affect VoIP call quality. The sound quality of the PBX system is high. In the end, the quality of your hardware (things like a router, switch, and your VoIP gateway) determine the quality of your call.
  • Scalability
    Call center technology can be quickly upgraded with VoIP. Message more VoIP phones, add users to your package, and that’s it. You may have to update your broadband internet package or add a network switch. And some branches or offices can use the same VoIP plan. With PBX, it’s not that simple. You must add additional telephone lines and get new hardware installed in the system; if you have a new office, install a completely new PBX system.
  • Security
    Every VOIP phone has different security features because it varied from service provider to service provider. Nextiva has a multi-million dollar security budget. Engineers monitor our network 24/7, and we arrange regular penetration tests.
    The PBX route is in place an external call directly to PSTN. Because the system is not connected to the Internet, there is no hacking risk.
  • Size Limitations
    With VoIP, only bandwidth limits the maximum number of numbers and users. You can add and delete users quickly, and the amount you charge will adjust accordingly. The company can also use several local and international numbers on the same system. The traditional PBX system limits the number of telephone lines, and if you want to add more lines, then more server space will be required, and it can lead to more expenses.
  • Availability
    VoIP systems are available for any business with a strong internet connection and can be set in minutes. Digital technology is almost entirely replacing the analog system of PBX systems. Unless the company already has a PBX system, it is not a decent choice.
  • Features
    VoIP system features include conference calls, call calls, voicemail options, call queues, call transfers, and interactive voice responses. There are also dozens of external integration that helps in customization of your VOIP System. PBX systems are generally limited to necessary phone calls.

The best solution for your business is a telephone system that suits your needs, making your telephone line open, and managing the cost-effectively long-term. Phone system specialists can help you do all these components and recommend the right solution for your company; Request an assessment to start.

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