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The world of telecom/VoIP terms is an overlapping muddle of "same exact same however different." PBX, IP PBX, hosted PBX: They're as comparable as their names imply but unique. Many people charged with discovering a brand-new business phone system aren't familiar with these terms, let alone the particular differences that impact their buying choice.

And why would anyone keep up with telecom specifications? Once you have a phone system in place, it's hopefully something you rarely think deeply about once again. The exception, obviously, are the fortunate market folks who dive into the mess to bring you tech-to-English translations like this OnSIP blog site. So let's enter it.

IP PBX

You may understand the term PBX: private branch exchange. PBX systems are bulky and costly, and standard analog systems link straight to PSTN copper lines. Modern PBX systems-and by "modern-day" here we imply post-Internet-are IP PBX to handle digital traffic. Basically, IP PBX is where PBX satisfies VoIP abilities. IP PBX systems are still on-premises, so they're not the less expensive hosted PBX from a VoIP provider like OnSIP.

Onsite PBX systems need a lot of area and a dedicated IT team. For corporations, they can work well, but they're fantastic for cash-strapped start-ups and SMBs that may not have the workplace for a telco-only server space, let alone the budget plan for the needed IT folks.
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VoIP Gateways: Bridging PSTN & VoIP
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PSTN calls send voice along copper electrical wiring. VoIP calls break voice signals down into little digital packages for travel across the Internet. To put it simply, the PSTN is analog, while VoIP is digital. A VoIP entrance is the piece of hardware that bridges the two systems by altering call traffic from analog to digital and vice versa. Without it, the signals would get stuck trying to change from one to the other.

VoIP to VoIP calls are similar to e-mails or instant messages: They comprise information packages cruising through cyberspace. This is why VoIP to VoIP calls are generally free. For VoIP to PSTN calls, the signals require a converter. Think of the VoIP entrance like your outlet converters when taking a trip globally. Your electronics work fine-they just require a translator for various voltages and outlet shapes.

Which Do You Choose?

At the beginning of this blog site, we pointed out that all of this tech is basically the very same but different. This is a fantastic way to sum it up, however it's not as helpful when you in fact need to pick one. Do you desire IP PBX or a VoIP gateway? Cloud or on-premises? Add in SIP trunking questions and you'll feel you're back to square one.

This might help clear some things up: All hosted PBX systems are VoIP, but not all VoIP is hosted PBX. An IP PBX system is more detailed to the tradition PBX systems, just updated for IP compatibility. The system still lives onsite, with all of the related expenses, much of which are in advance. Hosted PBX, on the other hand, is handled by a provider, and includes hardware, personnel, and upkeep. All you need to do is have a decent Internet connection and VoIP phones.

If you're aiming to upgrade your existing PBX system, IP PBX might be the ideal move. Otherwise, hosted VoIP has all of the tools and quality you require for smooth company operations.