IP PBX And VoIP System - How To Select The Right Business Communication System?

An effective communication is a necessity of business world. Increase in demand for sophisticated telephone systems has been the basis of new technologies like PBX systems that bring about hosted IP telephony. Prime choices for potential business communication system are PBX and VoIP. To choice between the two depends on its dissimilarities and specific benefits each system can fetch for the business.

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Hosted VoIP is internet based communication system that facilitates business activities over the telephone. The system works through business network using low amount of bandwidth for conducting all the activities. The IP equipment includes MPLS switches, routers and Ethernet switches. Once you plug in the telephone, all signaling, incoming, and outgoing calls are handled by hosted IP server. Monthly charges and discount packages will depend on the use of hosted voice telephony.

PBX system is regarded to be safe and secure telephone structure within an organization. It links internal telephones within one system as well as links it with PSTN.

How PBX systems differ?

Traditional PBX system lacks advanced services like call recording, call queuing and IVR menus system. It is basic, high priced telephony service that does not offer sophisticated features provided by hosted VoIP.

IP PBX is the most popular business phone system used. It resides on users premises instead of provider’s location like hosted VoIP. The functions are similar to regular PBX system, but the only difference is that IP PBX is software based and uses LAN for transmitting signals from internet to PBX server. SIP Trunk and PSTN system enables connection with external businesses. Providers of IP PBX manage all calls and enable wide range features like queuing, routing, call switching, or unified communications a low cost than traditional PBX.

How to select between VoIP and IP PBX?

Criterions to determine the best telephone system includes cost, long-term performance, and disadvantages.

IP PBX system needs hardware and server space, whereas in hosted VoIP only telephone equipment is needed because server is located on provider’s premises.

Installation and maintenance cost for VoIP is lower, whereas in IP PBX independent professional IT services are needed, which can add to ongoing expenses.  In addition, the VoIP supplier provides new features and software updates but in IP PBX you will need to purchase them. You can easily expand the lines in hosted VoIP system, whereas in existing IP PBX system, you can possibly apply SIP Trunking at low cost.

IP PBX installation and long term maintenance costs can be huge, but you must not ignore its essential features. The aim of business communication setup must be in accordance to enhance profitability and not be a subject of concern.

Flexibility of IP System

IP phone needs an active internet connection, which allows you to connect from remote locations. In this system, even if internet connection is cut all the business operations will be functional because the incoming data is recorded, even if the structure is network based. In VoIP system, all incoming calls are redirected to voicemail during internet disconnection.

IP PBX system gives user flexibility to adjust the features in accordance to their preferences. On the other hand expanding IP PBX system increases the density, repair cost, and extra maintenance.

Thus, it is hard to select between hosted VoIP and IP PBX communication system for a business. It is recommended to experience the benefits of each system and take an informed decision.