The world of telecom/VoIP terms is an overlapping muddle of "same very same however different." PBX, IP PBX, hosted PBX: They're as similar as their names imply but distinct. Most individuals charged with discovering a new service phone system aren't knowledgeable about these terms, not to mention the particular distinctions that affect their buying choice.

And why would anyone stay up to date with telecom specs? Once you have a phone system in location, it's hopefully something you rarely think deeply about again. The exception, of course, are the fortunate industry folks who dive into the mess to bring you tech-to-English translations like this OnSIP blog. So let's enter into it.

IP PBX

You may understand the term PBX: personal branch exchange. PBX systems are bulky and costly, and traditional analog systems link straight 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 satisfies VoIP abilities. 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 area and a devoted IT team. For corporations, they can work well, however they're excellent for cash-strapped start-ups and SMBs that might not have the workplace for a telco-only server space, let alone the budget plan for the necessary IT folks.

VoIP Gateways: Bridging PSTN & VoIP

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

VoIP to VoIP calls resemble emails or instant messages: They consist of data packages cruising through cyberspace. This is why VoIP to VoIP calls are generally free. For VoIP to PSTN calls, the signals require a converter. Think about the VoIP entrance like your outlet converters when traveling globally. Your electronics work fine-they just need a translator for various voltages and outlet shapes.

Which Do You Choose?

At the beginning of this blog site, we pointed out that all of this tech is essentially the exact same but different. This is a terrific method to sum it up, but it's not as helpful when you in fact have to select one. Do you want IP PBX or a VoIP gateway? 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, but not all VoIP is hosted PBX. An IP PBX system is better to the legacy PBX systems, just upgraded for IP compatibility. The system still lives onsite, with all of the related costs, much of which are in advance. Hosted PBX, on the other hand, is dealt with by a provider, and consists of hardware, staff, and upkeep. All you require to do is have a good Internet connection and VoIP phones.

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