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The world of telecom/VoIP terms is an overlapping muddle of "same very same however various." PBX, IP PBX, hosted PBX: They're as comparable as their names suggest however unique. Many people charged with discovering a new business phone system aren't knowledgeable about these terms, let alone the specific distinctions that affect their purchasing decision.

And why would anyone stay up to date with telecom specifications? Once you have a phone system in place, it's ideally something you hardly ever think deeply about again. The exception, naturally, are the lucky industry folks who dive into the mess to bring you tech-to-English translations like this OnSIP blog site. So let's enter it.
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IP PBX

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

Onsite PBX systems need a lot of area and a devoted IT group. For corporations, they can work well, but they're terrific for cash-strapped startups and SMBs that might not have the office space for a telco-only server space, let alone the budget plan for the required IT folks.

VoIP Gateways: Bridging PSTN & VoIP

PSTN calls send voice signals along copper circuitry. VoIP calls break voice signals down into little digital packages for travel throughout 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 2 systems by changing call traffic from analog to and vice versa. Without it, the signals would get stuck trying to switch from one to the other.

VoIP to VoIP calls resemble emails or immediate messages: They comprise information packets travelling through the online world. This is why VoIP to VoIP calls are often free. For VoIP to PSTN calls, the signals require a converter. Think about the VoIP gateway like your outlet converters when traveling internationally. Your electronics work fine-they just need a translator for various voltages and outlet shapes.

Which Do You Choose?

At the start of this blog, we discussed that all of this tech is basically the very same however different. This is a fantastic way to sum it up, but it's not as practical when you actually need to select one. Do you desire IP PBX or a VoIP entrance? Cloud or on-premises? Include SIP trunking questions and you'll feel you're back to square one.

This may help clear some things up: All hosted PBX systems are VoIP, however not all VoIP is hosted PBX. An IP PBX system is closer to the legacy PBX systems, just updated for IP compatibility. The system still lives onsite, with all of the associated costs, much of which are in advance. Hosted PBX, on the other hand, is managed by a service supplier, and consists of hardware, personnel, and upkeep. All you require to do is have a good Internet connection and VoIP phones.

If you're seeking to update 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 service operations.