PBX Definition - Private Branch Exchange

What is the best PBX for your business?

16:37 14 July 2017

PBX (Private Branch Exchange) systems are now an integral part of all types of businesses including SMEs and large enterprises. Depending on their requirements and resources, businesses can choose between on-premise PBX systems or cloud-based solutions.

 

Hosted PBX solutions are ideal for small and medium enterprises as they do not require large initial expenditure for on-site equipment. Instead, they pay for a monthly subscription and for the number of extensions they use. Hosted solutions simplify SME’s communications by integrating all branches into a single platform and enable enterprise mobility through Bring Your Own Device integration. However, the user experience is highly dependent on the quality of connectivity and local area network infrastructure.

 

On-site PBX solutions, on the other hand, are ideal for bigger companies that have the resources and internal skills and technical expertise to purchase and maintain their own on-site equipment. This option offers a feature-rich solution that can cater to thousands of employees.

PBX, which stands for Private Branch eXchange, is a business telephone system that switches calls, allowing all users in one organisation to share a certain number of external phone lines. Aside from multiple inbound and outbound lines, it also features call routing, voicemail and call management features.

 

PBX functions the same way as old-fashioned telephone operators, who once sat at large manual circuits board to manually plug wires into connectors to help users reach the party they want to speak to. PBX automates this process, making it faster and more efficient.

 

There are four main types of PBX systems designed to meet the varying needs of individual businesses. These include traditional PBX (on-premier PBX and hosted traditional PBX) and IP-based PBX (on-premise IP PBX and hosted IP PBX).

 

Onsite systems offer more direct control over the phone system’s operation allowing users to add, change or delete a line in-house. Analog systems, on the other hand, use traditional wiring and are generally distinct from a company’s computer networking hardware. IP-based systems are integrated into the same networking system used for sending and receiving email, web browsing and other online functions.