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The world of telecom/VoIP terms is an overlapping muddle of "same same however various." PBX, IP PBX, hosted PBX: They're as comparable as their names imply but distinct. The majority of people charged with discovering a brand-new service phone system aren't acquainted with these terms, let alone the specific differences that affect their buying decision.

And why would anybody stay up to date with telecom specifications? Once you have a phone system in location, it's hopefully something you seldom think deeply about again. The exception, obviously, 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 into it.
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IP PBX

You may understand the term PBX: personal branch exchange. PBX systems are bulky and pricey, and standard analog systems link directly to PSTN copper lines. Modern PBX systems-and by "modern" here we imply post-Internet-are IP PBX to handle digital traffic. Basically, IP PBX is where PBX abilities. IP PBX systems are still on-premises, so they're not the less costly hosted PBX from a VoIP company like OnSIP.

Onsite PBX systems require a lot of space and a dedicated IT group. For corporations, they can work well, however they're excellent for cash-strapped start-ups and SMBs that might not have the workplace space for a telco-only server room, let alone the spending plan for the necessary IT folks.

VoIP Gateways: Bridging PSTN & VoIP

PSTN calls send voice signals along copper wiring. VoIP calls break voice signals down into little digital packets for travel across the Internet. In other words, the PSTN is analog, while VoIP is digital. A VoIP entrance is the piece of hardware that bridges the 2 systems by altering call traffic from analog to digital and vice versa. Without it, the signals would get stuck trying to switch from one to the other.

VoIP to VoIP calls are similar to e-mails or instant messages: They comprise data packages cruising through cyberspace. This is why VoIP to VoIP calls are usually complimentary. For VoIP to PSTN calls, the signals require a converter. Consider the VoIP gateway like your outlet converters when taking a trip internationally. Your electronic devices work fine-they just require a translator for various voltages and outlet shapes.

Which Do You Choose?

At the start of this blog, we pointed out that all of this tech is essentially the very same however various. This is a terrific way to sum it up, however it's not as useful when you actually have to select one. Do you want IP PBX or a VoIP entrance? Cloud or on-premises? Add in SIP trunking questions and you'll feel you're back to square one.

This might 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 tradition PBX systems, just updated for IP compatibility. The system still lives onsite, with all of the associated expenses, much of which are in advance. Hosted PBX, on the other hand, is handled by a company, and consists of hardware, staff, and upkeep. All you need to do is have a decent Internet connection and VoIP phones.

If you're wanting to update your existing PBX system, IP PBX may be the ideal move. Otherwise, hosted VoIP has all of the tools and quality you require for smooth organization operations.