VoIP vs. PBX - Which is the Better Option for Your Small Business?

While PBX isn’t completely out of the picture, this traditional business phone system is engaged in battle with VoIP, an emerging technology proven to be far more advanced.  VoIP versus PBX is the issue commonly faced by companies looking to optimize their networks.  With the increasing availability of more sophisticated systems, it looks as if VoIP is winning the battle.

PBX telephone systems have been the standard for many years, providing the capability needed to handle the telephony needs of large enterprises.  Though effective, PBX has always been an expensive solution, calling for a high level of maintenance and added difficulty when business networks require an upgrade.  The evolution of internet technology has made other solutions available for demanding telephony requirements.  Now towering over PBX, VoIP has become the preferred technology for a range of communications needs. 

What is VoIP?

Voice over Internet Protocol or VoIP, is a protocol that has become the international standard for how voice is to be transmitted over the internet.  Unlike PBX, VoIP does not require as much complicated hardware.  Most systems allow the use of an existing internet connection from a computer, enabling you to the bypass the costs and hassle associated with traditional telephone lines.  This ability has made VoIP for business an ideal concept for small and large companies alike. 

PBX Systems

Most business offices have physical lines that are fed into the building by a utility company, along with additional lines that interconnect each telephone within the facility.  Traditionally, Private Branch Exchange or PBX systems, route the calls coming into the office building to provide communications for different extensions.  Although very useful and effective in certain operations, business VoIP systems offer a more flexible solution that is far easier to manage.  When considering that PBX is a more expensive solution, small to medium sized companies can reduce costs and see a dramatic impact in their bottom line with a VoIP business phone system.  

VoIP Business Phone Systems 

Due to a high demand and lower costs, organizations of various sizes have chosen to upgrade from traditional PBX, embracing the concept of business VoIP.  This amazing technology allows businesses to handle their telephony needs through seamless administration, easy network upgrades and the biggest advantage of all - cost savings.  Such an advanced approach enables corporations to communicate efficiently over their existing networks from any VoIP-equipped device. 

In a past dominated by PBX, each telephone and computer required its own line in order to be connected to the office’s central network.  With business VoIP solutions, only one is required.  Similar to how a computer transmits digital data across the corporate network, a VoIP business phone can transform voice into digital data and transmit it in the same fashion over the same line.  If available, these transmissions can also be made over a wireless network as well.  The advancement of mobile phone technology has helped business VoIP to be even more functional.  Whether it is from the office or out on the road, the benefits of VoIP can be enjoyed from virtually any location. While traditional PBX systems are still in place in a few offices, evidence is showing that this outdated technology is quickly wearing out its welcome.

Conclusion

When judging the battle of VoIP vs. PBX, it isn’t difficult to see that one has numerous advantages over the other.  VoIP technology is being adopted by small and large businesses and becoming increasingly present in the home setting as well.  The shift in phone systems is all part of technological evolution.  At one point in time fax machines were the practical method of transmitting important documents; now, most of the world relies on the email system.  If your company has already upgraded to a business VoIP system, we think you would agree that such changes are warranted.