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It does not need to be mentioned that VoIP (Voice Over Internet Protocol) systems have gained a lot of popularity in the recent times and when it comes to a business, nothing can be more beneficial.

However, not long ago, PBX systems were considered the standard in the industry. Having a large capacity to handle massive telephone needs, PBX systems were the apple of the eye for all businesses regardless of their scale or size. Since, VoIP has firmed its roots, the trend is changing rapidly and in order to maintain the position of a business, it is vital to know how these two systems are different, which one can be better for the needs of your business, and whether it is a wise decision to shift to the other one.

VoIP and PBX – Difference Explained

For the sake of clarity, we are putting it in terms that even a layman can understand. The PBX system is basically the grand version of analog telephone systems usually used in homes. The term PBX stands for ‘private branch exchange’ and it is operated and managed by a service provider known as the carrier or network. One of the best features of a PBX system is that it has the capability to make outside calls through the public switched network. Besides working as the sole telephone network within the business, users can make calls outside the business without any difficulty just like making a normal phone call. There are exchange numbers within the business using which the management or the business hierarchy can stay in contact with each other but the main phone line is powered by a utility company through physical lines that connect each phone within the building to a central control panel.

Contrary to it, the VoIP or voice over internet protocol only takes analog signals that you might have heard on a traditional phone and converts them into digital signals that can be transferred over the internet. The best thing about a VoIP is that there are no separate dedicated PBX systems and by simply utilizing the available internet connection, you can establish phone systems within the company. VoIP for businesses is ideal for a number of reasons; some of which are listed below:

  • Flexible – VoIP for business is very flexible because it can be set up almost everywhere where the internet connectivity is possible. With simple equipment like a Wi-Fi router, it can provide easy connectivity as opposed to a PBX system.

  • Inexpensive – The best thing about VoIP besides easy connectivity is that they are very affordable not just to operate but for maintenance purposes as well. The reason, again, it only uses the internet connectivity which most of the times, is available. All you need to do is use your legacy phone system with the internet connection using a router and you are ready to go.

  • Value Added Features – With a PBX system, you have to compromise with the limited features that it comes with and that too, with additional payments for each feature in the likes of the voicemail, caller ID, and call forwarding. However, VoIP is different and better. All these mentioned features and many others are already included and they are free to use. You just have to pay for your internet bills.

  • Enhanced Voice Quality – Since the usability of wired connections is very limited, the voice quality offered by VoIP is way better than the PBX systems. If your internet connection is fast, you will enjoy talking just like having face to face conversations.

  • Free Long Distance Calls – As mentioned earlier, using a VoIP for business, you can make long distance calls as well and that too, for free. It means that you can keep your costs under control and improve your profitability. No matter where you want to call, VoIP gives you the leverage to avoid spending money just for the sake of establishing contact with your clients living in far off places.

All these features can only be availed if you get VoIP for business instead of a PBX system. However, a PBX system has its own functionality and if you want, you can use it as well for your business. We hope you found this article helpful and informative. If you want to know more about any of these systems, feel free to contact us. We, at Freeje, have so much to offer and share.

 

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