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PBX vs. VoIP

All businesses, regardless of size, need to communicate — both internally and externally — in order to thrive in their respective industries. But just like the computer has brought waves of disruption and efficiency advancements to the business world, so too has the internet brought multiple innovations and avenues by which communication can occur.

In today’s competitive marketplace, businesses are more concerned with operational costs and profitability than ever before. That’s why it’s helpful to take a measured look at how a traditional Private Branch Exchange (PBX) phone system stacks up against the digital delivery of communications via a Voice over Internet Protocol (VoIP) network.

What Is Traditional PBX?

When it comes to traditional PBX vs. VoIP, it’s good to remember that the majority of small and medium-sized businesses exist in spaces that are well-equipped with traditional phone lines. However, when it comes to internet access and broadband connections, today’s business spaces aren’t all created equal. For this reason, it’s a good idea to be aware of the benefits of using a PBX system:

  • For companies with a low-capacity or slow internet connection: PBX is a separate leased line that’s entirely dedicated to voice transfer. This means, unlike VoIP, which relies on your internet connection, there’s no degradation of voice quality or services if you have a less than robust internet connection.
  • For companies that need emergency communications: If the power goes out and/or you lose access to the internet, you also lose your access to VoIP. However, since traditional phone lines act as an independent communications source, phones on PBX systems will still operate in an emergency.
  • For companies with large volumes of internal voice communications: PBX systems support easy internal communications by simply allowing employees to dial an extension as opposed to an outside number.

What Is VoIP?

Now that we’ve covered the difference between PBX and VoIP, let’s look at some of the benefits of VoIP — a communication system that’s grown by an average of 14 percent over the past decade and more than doubled its number of business subscribers in the past four years, with 20.1 million subscribers in 2014 and 41.6 million in 2018:

  • Option to automatically transcribe voicemails into emails or texts: With so many of today’s workers on the go, the option to have voicemails appear automatically as a text or email makes for large gains in the speed and productivity with which workers can communicate both internally and externally.
  • Eliminate on-premise hardware with a scalable cloud-based solution: VoIP is more like a scalable business application than a hardwired communication infrastructure. As long as your data network can handle it, it’s easier and less costly to add users and functions to VoIP system than to a PBX system.
  • Software-driven features: From the ability to automatically route internal and external calls to various video phone and teleconference options, VoIP offers numerous software-powered communications choices that PBX simply doesn’t.

Combine PBX and VoIP-Hybrid

As with so many technological breakthroughs, the best business approach is often one that offers the key benefits of both worlds — such as with IP-PBX vs. VoIP. Instead of choosing a traditional PBX system or a strictly internet-based VoIP network, many businesses are taking advantage of a hybrid system known as IP-PBX.

With this system, a company maintains a fixed number of traditional phone lines that provide functionality and voice quality even under the most demanding circumstances while also incorporating an automatic switch to an enterprise-wide VoIP network that saves money and allows for a broader selection of features. Businesses often choose this communications solution due to its flexibility and resiliency.

Consolidated Technologies, Inc. Is Your Business Communications Expert

At Consolidated Technologies, Inc., we have more than 20 years of experience supplying cutting-edge enterprise-wide communications solutions. See how we can help your business seamlessly communicate. Fill out our contact form or call 1-888-477-4284 today.


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