Back to Basics – What is a PBX? - VoIP.ms Wiki

Back to Basics – What is a PBX?

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Back to Basics – What is a PBX?

A Private Branch Exchange or PBX is a private network used within an organization for communication. Using a PBX, people within the company can communicate internally with other members of the company and externally with the outside world. Communication is enabled using different channels including ISDN, VoIP, and Analog.

It allows companies to create their in-house phone network that simplifies dialing and calling within the company, allowing employees to re-route the call to various extensions as required. Though PBX systems originally used to be hard-wired that ran on analog technology, many companies have now switched to IP-PBX. The digital PBX makes use of VoIP technology to send calls over the internet.

From large corporations to startups, many businesses are making use of the increasingly popular PBX systems.

Following are some of the advantages that PBX systems have to offer for your business.


1. Reduced Cost

One of the major concern for companies while making a shift to new and more advanced technology is the price. However, with a IP-PBX system, companies can actually save money. It is a budget-friendly and cost-effective solution for your business. Hosted PBX systems allow smaller businesses and startups to take advantage of the technology, without actually needing to implement the technology on-premise.


2. Increased Efficiency

With the implementation of PBX phone systems, employees within the organization can communicate more effectively and work can be performed in a more coordinated manner. Businesses gets the ability to record calls, track performance and generate reports for future use.

3. Mobility

Since IP-PBX phone systems make use of the internet to place and receive calls locally and internationally, employees can work from anywhere and be available to take the call even when they are away from their desk. Due to this mobility factor, employees can work more productively and effectively. There is never a missed call anymore.

4. Scalability

Your company might not be as big today, but it can be tomorrow. And as a business gets bigger, there is a need to have more phone lines for better communication. With traditional phone systems, this can be a hassle and costly procedure. However, this is not the case with IP-PBXs. You can have as many phone lines as required, and you can add and remove lines as per your business requirements.
IP-PBX phone systems are the future for communication, as more and more businesses are making the shift continuously. If you want to increase the productivity of your business and employees, making the switch to IP-PBXs is the way to go.


For more information about IP-PBXs, head over to our Wiki page : https://wiki.voip.ms/article/PBXs.

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