Hosted VOIP PBX: What It Is and What You Need to Know

Do you make decisions related to communications for your business? If so, have you considered switching to a Voice over IP system yet? Although many people don’t realize it, VoIP is becoming a major player in the world of business communications. The VoIP system comes with so many benefits and so few drawbacks, and it’s usually even cheaper than most traditional phone options. But, now that you’ve thought of it, you may be wondering about how all the calls make it to where they’re going. It’s not as much of a problem for smaller businesses, but larger companies have to work pretty hard to get calls routed to the right place. Many have elaborate switchboards and one or more employees whose sole job is to route calls, and that’s just with a standard phone system. Luckily, the VoIP system comes with its own solution to this problem, and you might be surprised by how elegant it is. Here are a few things you should know about VoIP PBX and how it relates to your business.

What is PBX?

Let’s start with the basics first. If you have some experience in this area, you can skip this section, but if you don’t, it’s best to start from the very beginning and work your way up. No matter what type of phone system you are using, PBX is necessary for any company with more than one or two phones. It stands for Private Branch Exchange. Every phone, or related piece of equipment, connects into a hub which organizes the entire system. When calls come in, the PBX system routes them to the right person, and when a call is placed from inside the office, the system assigns it to an outside line. This is how a company can maintain dozens of phones for its employees, but only need a few outside phone lines.

The PBX system also makes it very easy for employees to communicate within the company. All they need to do is dial the extension of the person they want to talk to, and the system connects them.

How does PBX relate to VoIP?

Now that you know what PBX is, you’ve probably realized that you already have a system like this in your office. Why, then, is it of interest to you? Here, we’re considering PBX as it relates to a VoIP system specifically. If you decide to switch to a VoIP system, you’ll need to understand the system completely, including how calls will be routed.

A PBX system within a VoIP system is actually similar to one that works with a traditional phone system. In the case of a VoIP system, however, the PBX system is usually a part of the software, instead of a physical device. Also, while it still allows for interoffice communication, it does not directly connect to outside phone lines. Instead, it connects to the VoIP provider, which then connects to the external phone system.

What are the benefits of using PBX with a VoIP system?

The PBX system is actually a benefit of switching to VoIP in the first place. First of all, a VoIP PBX system is much easier to install and maintain than a traditional PBX. It also grows with your company, while a hardware PBX system would need to be replaced as you grow. VoIP systems also tend to be easier to use once you get used to them, which leads to more productivity and happier customers. Finally, software is more customizable than hardware, which means your VoIP PBX system will likely come with more features than your current, traditional system has.

Want to know more about VoIP PBX and how it can help your business? Contact us.

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