The world of telecom/VoIP terms is an overlapping muddle of "same very same but various." PBX, IP PBX, hosted PBX: They're as similar as their names imply however unique. Many people charged with discovering a new company phone system aren't familiar with these terms, let alone the particular distinctions that impact their purchasing choice.

And why would anybody stay up to date with telecom specs? Once you have a phone system in place, it's ideally something you seldom believe deeply about once 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. So let's enter it.

IP PBX

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

Onsite PBX systems need a great deal of space and a devoted IT team. For corporations, they can work well, but they're great for cash-strapped start-ups and SMBs that might not have the office for a telco-only server space, let alone the budget plan for the needed IT folks.

VoIP Gateways: Bridging PSTN & VoIP

PSTN calls send out voice signals along copper electrical wiring. VoIP calls break voice signals down into little digital packets for travel throughout the Internet. To put it simply, the PSTN is analog, while VoIP is digital. A VoIP gateway is the piece of hardware that bridges the two systems by altering call traffic from analog to digital and vice versa. Without it, the signals would get stuck attempting to change from one to the other.

VoIP to VoIP calls resemble e-mails or instant messages: They consist of information packets travelling through cyberspace. This is why VoIP to VoIP calls are often totally free. For VoIP to PSTN calls, the signals need a converter. Think of the VoIP gateway like your outlet converters when traveling worldwide. Your electronic devices work fine-they simply need a translator for various voltages and outlet shapes.

Which Do You Choose?

At the start of this blog, we mentioned that all of this tech is essentially the very same but different. This is a terrific method to sum it up, however it's not as valuable when you actually have to select one. Do you desire IP PBX or a VoIP entrance? Cloud or on-premises? Include SIP trunking questions and you'll feel you're back to square one.

This may assist clear some things up: All hosted PBX systems are VoIP, however not all VoIP is hosted PBX. An IP PBX system is more detailed to the legacy PBX systems, simply updated for IP compatibility. The system still lives onsite, with all of the related costs, much of which are up front. Hosted PBX, on the other hand, is managed by a service supplier, and includes hardware, personnel, and upkeep. All you require to do is have a good Internet connection and VoIP phones.

If you're looking to upgrade your existing PBX system, IP PBX may be the ideal relocation. Otherwise, hosted VoIP has all of the tools and quality you require for smooth service operations.