“PABX” (often reduced to PBX) is a term often thrown around in the telecommunications world, such as in adverts for a product or in lists of functionalities and benefits of a package. The terms hosted PBX, IP PBX, VoIP PBX and Virtual PBX are variants of the term used in some cases. While such offers can seem intriguing, it is always best to understand a product fully before going through with a purchase. For that reason, here is an explanation of what a PBX system is.
PABX (Private Automatic Branch Exchange, often PBX): a PBX system connects internal lines (for example, a company’s phone system) with the outside world (through an external line). A PBX system can connect several of those internal lines to a single external one, allowing a company or building to have more phone lines internal lines than external ones. On top of this, since the PBX system routes internal lines to the outside through a single PBX, the system also allows phones from within a company—such as an employee and his boss—to communicate without the need for outside phone networks. As something of a bonus, PBX systems also allow you to program and manage certain tasks and functions.
PBX systems come in two forms: standard PABX systems and PCBX systems.
PCBX (Private Computerized Branch Exchange): a variant of the PBX, PCBX systems are completely virtual (and sometimes referred to as virtual PBX, IP PBX, hosted PBX or Cloud PBX). While traditional PBX systems are often pricy and require costly hardware, PCBX are virtual systems which operate without any equipment, thus removing entirely any hardware and installation-related costs. IP PBX systems are the equivalent of standard PBX systems, but for VoIP networks. Since one important advantage of VoIP systems is being virtual, requiring very little equipment, it is only natural that VoIP providers would choose a virtual PBX system. The advantages of such PBX systems include:
- Low costs (no hardware)
- Less hardware to manage
- More flexibility
- Extra functions
A PBX system can be briefly resumed as a system which manages extensions. While standard PBX systems and PCBX systems are quite different, and while there is a growing list of advantages for a virtual PBX system, the basic functions remain the same across the board.
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