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PBX telephone system hardware is used to host phone systems locally by businesses and companies that require many phone lines for their operations.

A PBX system transfers call between users on multiple local phone lines while allowing all users to use the same number of lines. Businesses deployed local PBX systems in the beginning to decrease the expense of several telephone lines for each user.

What is a VoIP (Voice Over Internet Protocol) System?

To route calls, VoIP phones use the Internet rather than physical switches. VoIP technology converts analog voice signals into digital packets, which are subsequently sent over the internet to the caller.

Users who utilize IP or conventional phone systems can communicate via the VoIP phone system. With the growth of broadband and low-cost Internet, it has become the preferred option for people and enterprises.

Main Distinctions Between a PBX and a VoIP System:

1. Initial Investment:

Installing an on-site PBX is a large operation that requires a large upfront cost. With the requirement for constant power, costly routers, protocol gateways, configuration software, and crucial gear like telephones and headsets, the setup cost can easily reach thousands of dollars. Businesses, on the other hand, simply need to invest in their IP phones with VoIP, and they may further reduce their upfront expenses by employing USB headsets.

2. Ability to Scale

Scaling up using PBX is difficult. When a company hires a new agent, they must connect more phone lines and purchase new hardware. It gets even more difficult if the firm intends to relocate its offices. They will have to set up a completely new PBX system, which would result in additional setup fees.

Scaling a VoIP network is also simple. If your company wants to upgrade to a higher VoIP plan or acquire extra phones and add new customers, it’s as simple as clicking a few buttons.

3. Size Restrictions:

Traditional PBX systems limit the number of phone numbers and lines available. If you add more lines, you’ll require more server space and hardware, which will increase your business costs. Furthermore, calls may only be made through direct devices within the system, restricting call flexibility.

With VoIP, the maximum number of numbers and users is limited exclusively by bandwidth. It’s simple to add and remove agents, and the billing amount will be updated accordingly. On the same system, businesses may utilize a variety of local and international phone numbers.

4. Call Quality:

When using a PBX, call quality is determined by the hardware used, such as routers and phone types. Because the calls are made through landlines, it is critical to ensure that the phone system is appropriately configured for high-quality conversations.

While VoIP systems’ sound quality is highly reliant on a fast internet connection, the deployment of fiber optic lines will entirely eradicate any call quality difficulties.

5. Security and Dependability:

When correctly implemented, a PBX system is extremely dependable and secure. Because PBX systems rely on a traditional PSTN (Public switched telephone network) rather than an Internet connection.

Furthermore, power outages will not be a problem with traditional PBX phones. Because the phones are not powered by electricity, they will continue to work even if there is a power outage. Hardware failure, on the other hand, is a crucial problem to consider. If an internal problem arises, the entire PBX system will require technical adjustments, resulting in downtime.

What Are the Various PBX Phone System Types? – Which One Should You Pick for Your Company?

1. PBX Systems That Have Been Around for A Long Time:

A typical PBX is installed at the company’s physical location(s). The calls are routed through a standard phone system. This implies that even if there is a power outage, your organization will be able to make calls and communicate without interruption.

Although the initial expenditure is high, the monthly cost will be lower in the long run. If your organization has a dedicated IT team to ensure servers are up and operating, a traditional PBX is also a wise investment.

2. IP PBX (Voice Over Internet Protocol) System:

An IP PBX, often known as a Voice IP (VoIP) PBX system, makes full advantage of commonly accessible internet connectivity. The network, like a typical PBX, has a significant initial purchase and installation cost. Still, owing to VoIP calling, total expenses are lower, and more functions are accessible.

An IP PBX is also easier to administer and provides improved call stability and sound quality. While traditional PBX systems are constrained by the number of phone lines available, an IP PBX is constrained by the amount of internet bandwidth available to the firm. Furthermore, because the call data is compressed into digital packets, each call takes up relatively little space.

3. PBX System (Hybrid):

To connect to external phone numbers, a hybrid phone system combines VoIP technology with a digital PBX to produce a blended solution. Because it’s installed on-site and can connect to the phone system from faraway locations, this form of PBX is easy to manage. SIP trunks are supported by the majority of hybrid PBX systems, resulting in excellent call quality.

4. Cloud-Based PBX System:

All PBX apps, system capabilities, and calling services are available in the cloud with a cloud-based PBX system, also known as Virtual PBX. The network infrastructure is made up of an Internet connection, appropriate contact center software, and a web app. The complete bundle is invoiced in a single monthly billing. Your telecom service’s owners will provide PBX maintenance, software upgrades, and warranties.