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Which Do I Need - VoIP Or PBX Phone System?
Written by David Maslow   
Friday, 16 July 2010 07:35
As technology advances in the telephone industry, there are many options available to small businesses. VoIP and PBX are two of the best options. Both of these options are cheaper than a traditional phone system but still provide all the services any business would need. This article will hopefully help you decide between a VoIP or PBX phone system by talking about their salient points.
by DavidMaslow


As technology advances in the telephone industry, there are many options available to small businesses. VoIP and PBX are two of the best options. Both of these options are cheaper than a traditional phone system but still provide all the services any business would need. This article will hopefully help you decide between a VoIP or PBX phone system by talking about their salient points.

VoIP System
VoIP is short for Voice over Internet Protocol. It passes digitized voice data from one point to another over packet switched network. More conversations in the same amount of bandwidth allowed by VoIP is a major draw for telecommunications companies. Another huge advantage of VoIP services is how cheap long distance calls are. In addition, VoIP set-up differs from PBX set-up because the VoIP systems are set up by the users themselves, instead of being setup by the company like most PBX companies do.

PBX System
Public Branch Exchange is more commonly referred to PBX. Essentially, it routes incoming calls to the appropriate extension by means of a miniature telephone network and shares phone lines between each extension. PBX phone systems have many great customer service features that businesses find attractive; these include: automated greetings for callers dialing menus, connections to voicemail, teleconferencing and much more. In addition, it also cuts costs by eliminating the necessity for every person in the office to have their own phone line that remains unused most of the day.

Switching to PBX allows a business to cut the number of lines, without necessitating the removal of any office or departmental phones. More services PBX offers are the even distribute call to a department among available employees, conference multiple incoming calls, and even play music while the caller is on hold. A PBX system can certainly create a professional feel for prospective clients who call your company.

IP PBX System: The new addition to PBX technology
With further advancements in technology, many PBX systems are capable of handling VoIP calls, which is referred to as IP PBX. Using VoIP in a PBX phone system can really benefit a company's communication systems because it allows users to make use of only one phone to dial outside numbers and make long-distance calls. A computer program like an IP PBX system can take advantage of the processing power of a computer and Windows. The easy roaming of users is another utterly convenient feature that IP PBX allows. The SIP protocol characteristics all calls to be taken anywhere in the world.

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