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IP PBX vs Traditional PBX Phone System

by Cheena,on Nov 19,2019

From the last few years, it has been witnessed that the increasing number of firms and enterprises all over the world are discarding the tradition telephone system in favor of VoIP  PBX to avail of its various features. 


PBX stands for Private Branch Exchange, which is a private telephone network used within a company or organization.  The users of the PBX phone system can communicate internally and externally, using different communication channels like Voice over IP, ISDN or analog.

PBX manufacturers have moved into IP communications and are now using protocols that can communicate and integrate with other existing applications.  These PBXs are referred to as IP-PBXs because they use IP (Internet Protocol) for their signaling. 

An IP-PBX is a business phone system consists of one or more IP based phones, an IP-PBX server and an optional VoIP gateway to connect to existing PSTN lines.   

Advantages of IP PBX over Traditional PBX:
1) Single Network: This is one of the biggest advantages of IP Telephony systems. Traditional PBX requires their own network and it is quite expensive to build a separate telephone network spanning the entire premises. With IP Telephony, the Computer Network can be used to carry voice calls along with data and the IP Phones connect directly to Network Switch Ports using Cat 5/6 Cables. 

2) Low Running Cost: Your organization needs to purchase hardware for running a traditional PBX. Larger organizations that would be utilizing a traditional PBX should expect to pay much more than a VoIP solution. IP PBX system lowers the cost for per individual user for unlimited calling.

3) Customization: For traditional PBX, Customization of a PBX requires an experienced and knowledgeable technician, and the addition of new features or functionalities generally requires the addition of new hardware.
Whereas, One of VoIP’s strongest benefits is the level of customization available. Users can customize subscriptions to choose specific services or features. Users can specify greetings, business hours, individual user extensions, calling options, and much more.

4) Call Recording: Often, you may want to record certain voice calls for future reference. In analog/digital PBX, a separate line needs to be connected from each phone (in parallel) to expensive equipment called Voice Logger. But with certain IP PBX models, call recording is an inbuilt function and can be activated by the user through their IP phone/ PC interface whenever required.

5) All in One System: In traditional PBX, All applications other than PBX call processing are add on and require the use of a different administration interface. Difficult to learn and use. The higher total cost of ownership due to a complicated user interface. While IP PBX System includes integrated applications like Call Processing, Voice    Messaging, Meet-Me Conference, Call Distribution, Automated Attendant and branch office networking. Since all applications are integrated into the same platform, the administration is simplified and very easy to use. 

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