What’s the Difference between VoIP Technology and PBX?

VoIP or voice over internet protocol, is rapidly replacing the older but more familiar technology of PBX or private branch exchange. Also known as TDM or time division multiplexers, PBX is now being quickly abandon for VoIP. And, the reasons are many. While many businesses still use analog phones with dial tones, more and more are adopting hybrids. These incorporate aspects of PBX with VoIP endpoints. The end result is lower costs with substantially more applications and features.

What’s the Difference between VoIP Technology and PBX?

So, what’s the difference between hosted VoIP and PBX? Well, the answer is somewhat technical, although it’s not difficult to understand. PBX is merely direct line-to-line communications. These systems have been in use for many decades. As a result, they are limited in their capacity. In other words, customers can phone your business and be physically connected through a private branch exchange.

Companies use a private branch exchange, or PBX, to connect their internal phones to their external lines and to carry out functions such as call forwarding and call holding. Business voice over Internet protocol, or VoIP, systems can carry out many of the same functions at lower cost. —Houston Chronicle Small Business

On the other hand, VoIP systems employ cutting edge technology. Hosted voice over internet protocol uses data packets to send and receive connections. So, when a customer calls into your business, he or she is connected through your network, as well as the internet.

Biggest Hosted VoIP Advantages

One of the most asked questions about hosted VoIP is why are so many businesses using the technology? After all, PBX has worked since the late 19th century. While it’s true that TDM is older, it’s not necessarily always the most reliable. And, it’s quite expensive, compared to VoIP. Here are the biggest advantages of hosted VoIP systems:

  • Many more useful features. If you need features like call blast or simultaneous ringing, you won’t find these options in traditional PBX. Other features, such as ringing through to smartphones and route to voicemail for other incoming calls. In short, VoIP offers a whole robust suite of calling features that make it a more useful choice.
  • VoIP needs less hardware. Another advantage of VoIP is the fact that much of the technology is becoming software based. This is a big benefit because it lessens the need for hardware, which costs more and takes up physical space. Rather than occupying parts of a room, VoIP resides in the cloud.
  • VoIP offers versatility PBX can’t match. Yet another big advantage of VoIP compared to PBX is the ability to take it with you. Send employees out into the field, fully equipped with communications. IP services can easily register a wide variety of devices for use on-the-go.
  • PBX is more expensive than VoIP. Perhaps the single largest benefit which attracts businesses to VoIP is its low-cost. Unlike PBX, which is a lot more expensive, for per call rates and for initial setup and maintenance, hosted VoIP is a fraction of the cost.

More information about obtaining this superior and advanced VoIP systems is available by phoning 813-856-0223 locally, 888-809-9243 toll-free or via email at sales@TieTechnology.com.