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The Differences Between VoIP Over PBX Systems

When it comes to running a successful business, an aspect that is often easy to overlook is your communication system. Communication is key in all aspects of business, whether that is external communication or communication between internal and externally based teams. There are many different ways that communication needs can be met for businesses and the most common types are VoIP and PBX systems. 

VoIP stands for voice over internet protocol and relates to an internet or cloud based system that is moden, efficient and highly effective. This is the comms method of choice for many businesses in the UK and abroad and it has many benefits and advantages over other types of communication network.

A PBX system is also a solid choice for many, though there are limitations to these systems that we will discuss, as well as the advantages. PBX stands for private branch exchange and it is an umbrella term that mainly relates to more old-fashioned analog phone systems, though there are many IP based PBX systems out there. PBX systems are an enterprise comms option that are sometimes simply called ‘business phones’. 

Explaining the differences

A PBX system connects all your desk phones within the same network which allows your teams to speak to each other internally without incurring any costs, as well as transferring calls. It’s entirely possible to have more phones than phone lines in this kind of system because they work by using a system of extensions that make it possible to redirect calls to the right place. 

PBX and IP PBX systems are most similar to the analog phone systems you might use domestically but are geared towards business use with the main difference between the two being that hosted and IP PBX networks are cloud based and reduce the need for expensive, complex and time consuming installation of hardware. 

Rather than using the above methods, VoIP uses the internet to transfer voice data over the internet. The system sends voice data to the VoIP service provider who is responsible for maintaining the system connectivity and security. While with the provider, the digital voice files are converted into analog signals that are sent to the receiving device through the public switched telephone network, or PSTN. 

To summarise, a VoIP system essentially records your voice, converts it into a digital format, transmits the data over the internet to your provider which is where the conversion process takes place. Business phone system prices can vary between the various kinds of business telephony, but VoIP is often a very cost effective option because it doesn’t require a lot of complicated hardware and lengthy installation processes that can hold your business up.

You might believe that the additional steps taken to convert data when using VoIP mean that it will take longer to transfer voice data leading to delays but this is not the case at all. The entire process is incredibly fast because the data travels - quite literally - at the speed of light. Essentially, this means that you will not experience a delay in sending and receiving voice calls. 

There is no right or wrong answer as to which kind of business telephony will be best for your needs because it depends on your budget, whether you need to pay for additional hardware, and how extensively you use phone systems within your business. The most important thing to think about, however, is whether you need your phone system to be scalable and flexible.

VoIP systems are generally considered to be more scalable, mostly because it is possible to upgrade the system and increase the number of phones and devices without needing to actually upgrade the physical hardware. The only thing you will really need to pay attention to is your internet connection as this may need to be upgraded to provide better connectivity as your business grows.

Installing PBX systems can be expensive and requires significant time to install hardware such as phone lines. VoIP and cloud based telephony systems are usually much more affordable, and the biggest associated cost is the headsets and devices you will be using. You can keep costs very low by using USB headsets that plug directly into your PC or laptop.

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