The growing adoption of VoIP makes it easier for companies to employ more features in their phone systems. The increasing recognition of the need for efficiency with lower costs within an organization is an influence that's helping to drive the acceptance of VoIP pretty much everywhere.

VoIP comes in many variations, and depending on your needs, some or all may be applicable, but what’s the difference between VoIP, IP and PBX (News - Alert)? While this topic has been discussed many times over since the inception of IP telephony, it’s still a topic that not too many are clear on. Let’s break it down:

PBX

PBX stands for Private Branch Exchange, which is a private telephone network used within a company or organization. The users of the PBX phone system can communicate within their company or organization and the outside world, using different communication channels like Voice over IP, ISDN or analog. A PBX also allows you to have more phones than physical phone lines (PTSN) and allows free calls between users.

Hosted PBX

Hosted PBX means your company can easily connect remote offices together and maximize the power of IP-telephony systems. Callers can remember one number but be directed to employees around the world without any extra effort. A hosted PBX will provide your business with flexibility, mobility, and cost savings without compromising on quality, reliability or advanced features.

IP PBX

An IP PBX is a complete telephony system that provides telephone calls over IP data networks. All conversations are sent as data packets over the network. With an IP PBX, you can easily use a business VoIP service provider for long distance and international calls. If you have branch offices, you can easily connect phone systems between them and make free phone calls. An IP PBX is scalable, easy to manage, and easy to configure.

VoIP

This is a method of converting voice signals into data packets, and passing that traffic over a data network (like the Internet). Note that VoIP calling services can be used with IP Telephone Systems or traditional PBX systems – they are not exclusive.

Sometimes, it´s a clear decision whether IP or PBX business telephone systems are the best solution for your organization. In other instances, the benefits of either solution are not easily seen. Talk to potential providers to understand the norms of each system and see which will offer the most benefit to suit your needs.