Every business needs a telephone system that reflects their work. A telephone system makes a company rise or fall in a matter of days. We have researched for you and accumulate information regarding the PBX system, and how it will help your business grow.

First, let’s know what a PBX phone system is?

The word PBX stands for Private Branch Exchange. It is a private telephone network that is used inside a company or organization for communication. By using different types of communication channels like VoIP, ISDN, or analog, the company employees can communicate within the company and with the outside world as well. When you compare it to a multi-line phone system or physical phone lines (PSTN), a cloud PBX allows you to have more phones. And users on the same network can make free phone calls saving good money to the company. 

These phone systems have been successful phone systems for mid-size and large companies for a very long time. They are dependent on hardware and switches to route the calls. The device is installed in the telecom cabinet, which can be kept inside the office.

It has features that are very beneficial for multi-national companies like voicemail, auto-attendant, call transfer, call recording, interactive voice menus (IVR), dial-by-name directories, and ACD call queues. This system is sometimes called Centrix if used via virtual solution. And PBX can also be used as a hosted phone system. 

This system uses open standards and interfaces, which makes them more flexible as compared to the traditional phone system. As the modern cloud PBX phone system is dependent on hardware, which is readily available, it is cost-efficient and way more comfortable to be replaced. 

Due to the high flexibility level and being fully programmable, it lets the user add or remove features according to the usability.

Reasons why PBX is the next big thing your company should be using

It is high time that your business moves past the costly physical phone system and get friendly with a business phone system that is competitive and cheaper. 

i) Save on your resources: Virtual PBX is the current favourite of all the organization that save its hard-earned time and money. Stop investing in high startup costs when you can get double features and high quality at half price. Other than that, you don’t have to be saturated or make commitments for long-term with your service provider like other phone systems. Give your IT team time to excel for a change instead of debugging your phone system.

ii) PBX is quite handy: You have to make the decision, and the service provider will do the hard work. That is the nutshell of a virtual PBX system. You will not have to worry about regular maintenance, security, or upgrades as your service provider will always keep you in the loop with all of it.PBX System helps to transform your business communication platform and can be afforded by all kinds of organizations.

iii) It has features that your old phone system won’t have: This system will give you first-hand access to the services and functionality that your previous service provider would charge ten times more for. This phone system will give you business wings as it has all the tools that will make your business grow and compete in the market.

With features like auto-attendant, your global customers will be impressed with the level of professionalism. If you have a small or medium-sized business, cloud PBX will make it look like any giant corporation.

iv) It is scalable: When you opt for virtual PBX, your company doesn’t have to worry about spending on new equipment. Instead, you can be stress-free as you will be getting more features and adding new phone lines without spending a fortune. And to top it all, your company will be using technology which is far from being obsolete. 

What are the pros and cons of PBX


Before you decide to upgrade to a PBX system, we’d like you to know the order in and out. We have created a list of a few pros and cons of the hosted phone system that will give you a more unobstructed view and help you buy your future business phone system.

Main Pros of a PBX system

i) It has low maintenance: Who doesn’t want business telephony that is of low maintenance? And especially if you are low on team and budget, it is your primary goal to have every possible thing that will not take much of your time and effort. So, imagine this once you set up a PBX system, and you are all set. The system will not require a regular maintenance check or upgrade that sometimes leads to downtime, and that disrupts the work.

ii) There will be no outages: When we said that it is a reliable and dependable phone system for your business, we meant it. A PBX phone system will keep on working even if your computer network is down for a while. That means your business is not entirely dependent on an internet network. This gives your business the freedom that it was always looking for.  

Like any other technology, PBX also has some drawbacks, which we would like you to know.

Cons of a PBX system

i)Lack of Mobility: Though this technology is comparatively new in the market still, it is not the most current. With the rise of the VoIP phone system, PBX lacks one of the essential features – Mobility. A PBX system is not mobile and is still dependent on older technology, which is not as useful to the current work scenario as other technologies might be.

ii) Costing of the system: If you are a bit tight on the budget, then PBX won’t be a good option. It is more expensive than a new telephony system, VoIP. On the one hand, where VoIP won’t need any extra hardware or software upgradation, PBX will need one. PBX will attract installation and wiring charges, which are not necessary for VoIP. Still, we don’t think that there is a dramatic costing difference between the two.

What is the significant difference between PBX and PABX?

We have talked a lot about the aftermaths of PBX, which is the originator of PABX. Now let us discuss how these two are different from each other. 

In the old times, a PBX used to be a room in which there were switchboard operators that could connect calls from one caller to another. This was done manually by plugging the wires to create a calling circuit.

Later, technology unfolded along with new changes in the system, which made the switching electronic. This welcomed the new age of automation. And from there, the word PBX evolved to PABX. A private automatic branch exchange (PABX) is a type of PBX that is programmed.

The only massive difference between the two is that PABX is an automated version of PBX. In past years the PBX phone system has moved a long way from being an operating room to a newly formed automated PBX. This clearly states that it is not much different between PBX and PABX. 

Due to this reason, the common term used to indicate both the ends is PBX because they lead to the same operation. 

The technology revolving around this system moved ahead and got feature-rich. Now it offers standard features like call conferencing, call waiting and many others. With CallHippo PBX, the future is nearer than it ever was. The PBX is hosted in the cloud, which will give you better security, high speed and the cost of the PBX system is low with lower downtime. This means no more employees in the spooky dark room.

Get in touch with our team for a fuss-free quote for all your business telephony needs. Technology is always evolving and emerging, shouldn’t your company too?

Updated : July 19, 2021


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