Business VoIP Featured Article

VoIP or Traditional PBX: Which is Better for Businesses?

August 01, 2013

By Ed Silverstein, Business VoIP Contributor

Given new technology that exists today, businesses will likely find themselves choosing between a Voice over Internet Protocol (VoIP) or a traditional PBX (private business exchange) phone system.

The traditional phone works even if the Internet goes down, or there is a power outage. It often features phones, fax machines, modems and voicemail.

But VoIP phones give small- and medium-sized businesses (SMBs) the same benefits seen at large businesses. VoIP offers many advanced features; all services are provided by a single company, such as broadband, data networking and encryption.

VoIP phones are often more economical. With traditional phones, businesses have to purchase phones and other equipment, and wires need to be installed. Maintenance and repairs are another source of costs. IT staff and other tech pros need to spend time on the system.

VoIP, on the other hand, is hosted, so there are no installation fees, capital costs, nor need for most additional IT services. VoIP is also flexible and scalable. It is easier to use than many traditional phone systems and it is often less expensive in terms of monthly costs. One big plus is that many VoIP services do not charge for domestic long-distance calling.

The hosting company is responsible for the system setup, installation, maintenance and upgrades. Also, Internet-based systems employ high-definition technology so reception is clearer. They also are accessible from anywhere, round the clock via the Internet.

It’s no accident that both small and large businesses are opting to use VoIP for voice and data communications. Still, many businesses use some form of PBX for their phone system.

In addition, hosted PBX employs the Internet to place and receive calls. It uses off-site hardware, which is managed by a VoIP provider. The service is supplied by a telecom provider. “Recently, these services have begun making headway in the business, and more specifically in the call center, along with marketing world, and have become a lead replacement for traditional phone systems,” according to a recent report from virtual-pbx. “PBX systems help businesses avoid wasting space or money on maintenance, along with variety of features that are offered for call management that have encouraged small to mid-sized businesses owners to move from PSTN [public switched telephone network].”

“There is nothing that a hosted PBX can’t do that a traditional phone system can, and in fact, it created even more opportunities to enhance productivity,” virtual-pbx’s Ashley Caputo says. “One of them is by simply making it possible for employees to have remote access no matter where they are.”

Edited by Rachel Ramsey


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