A Private Branch Exchange (PBX) allows users to create their telephone network within a company or organisation.
With this system, employees can communicate internally and externally using channels like VoIP or ISDN.
The PBX is a business telephone system, evolving from the old-fashioned Key Telephone System. The term “PBX” emerged in the 1970s to describe a switching system serving a private company.
In the first era of the PBX, businesses relied on a switchboard connecting cords from one location to another.
Gradually, PBX solutions evolved to include things like call forwarding, hunt groups, and extension dialling.
The growth of data network and an increased understanding of packet switching led to the development of IP PBX.
What is a Private Branch Exchange Phone System?
A PBX refers to a private telephone network that allows users to talk to each other, often in a business landscape.
It operates the internal telephone network of the company, managing routing and calling capabilities for outbound and inbound calling.
A PBX Phone system today is a solution which provides businesses with the necessary features and functions exclusive to business communication needs.
This includes allowing companies to manage various outbound and inbound calls, individual extensions to employees, and set up auto attendants and call management features.
The PBX differs from the older Key Telephone System (KTS) in a few ways.
Users of a KTS used to have to select their outgoing lines manually using special telephones with unique control buttons, whereas PBX solutions can select the outgoing line automatically.
Each device connected to the PBX, from telephones and computer modems to fax machines, is an “extension” with a designated extension number.
There are various kinds of PBX available today, which may use communication channels such as VoIP (Voice Over Internet Protocol), and Integrated Services Digital Network (ISDN).
What Can a PBX System Do?
PBX solutions used to be tools specifically designed to allow for internal networks to operate within a business environment.
PBX redesigned how companies handle calls, minimising the demands on corporate budget and opening the door to digital transformation.
Today’s PBX system can split a single phone line into various private lines, all identified by extensions. This means anyone can reach someone else in an office through a single phone number.
Features of PBX systems include:
- Managing and completing calls: PBX solutions allow for the management of calls and the control of various PBX branches. Operators can restrict or permit international and local dialling options based on phone service.
- Call transferring: You can transfer calls between users and departments with ease. This makes it easy to establish and maintain connections in a company with minimal dropped calls.
- Advanced calling features: PBX solutions can now be equipped with tools for Direct Inward Dialling (DID), IVR (Interactive Voice Response), call recording, and other features.
- Local connections: Offering users access to local numbers in cities where they aren’t physically present for a more local brand experience.
- Call control: Call blocking, forwarding, logging, transferring, call waiting, and other calling features.
- Office connections: Connecting multiple office locations within the same phone system keeps employees in different destinations connected.
The Different Types of Systems
On-Premises PBX
An on-premises PBX is becoming a little outdated in the modern digital age, but it’s still something that many companies prefer to invest in.
On-premises solutions give you an on-site environment where you can handle all of your PBX needs.
This product might be ideal for people who aren’t planning on growing or expanding fast as there are additional maintenance costs and technology investments to consider
Hosted PBX
A Hosted PBX is essentially the “new era” of PBX technology. Internet-based PBX solutions allow you to manage your employees’ phones and technology from your web browser.
You purchase the phone and service; then, you can roll out and adapt features of the PBX functionality from an online portal.
The online environment usually offers control over things like call forwarding, hold music, auto attendants, and call routing. You might even be able to set up custom hold messages.
SIP trunking has also emerged as a common investment in the digital world, allowing companies to connect their existing PBX to the internet.
This allows companies to use their on-premises or existing PBX but expand it to the internet.
What is an IP PBX?
The IP PBX first emerged in 1997. Within a few years, VoIP, or Voice over Internet Protocol, became a standard part of the PBX conversation.
The solution allowed for multimedia transmissions and the delivery of larger data packages throughout the business network.
Not only could VoIP transfer more data over the internet, but it could do so without increasing data usage costs.
The most significant benefit of the IP PBX system for many companies was the arrival of new virtual hosting opportunities.
With the IP environment, there was no longer a need to rent, maintain, and upgrade computerised switchboards within the business environment.
Instead, companies could use an internet connection to process and transfer their data.
As companies began to handle more of their calls through the internet, new interfaces and PBX functionalities emerged.
Softphones offered employees a way to look at monitors and see all kinds of telephony information on a display.
The softphone could turn any connected device with a set of headphones and a microphone into a desk phone.
Other new features include:
- IVR menus: Interactive Voice Response routing to help users reach the correct extension.
- Voicemail: The ability to collect voice messages and transcribe them into text.
- Scheduled routing: Changes to routing systems based on business opening hours.
- Portable phone systems: Mobile business phone numbers for employees.
- Call queuing: Better management of calls on hold.
The Benefits of an IP PBX System
The evolution of the IP PBX system introduced companies to cost savings and efficiencies for the communication landscape.
Older phone systems had fewer features and were more costly in terms of maintenance and monthly phone bills.
An internet connection also meant businesses could access their phone system from anywhere, making it easier to bridge multiple offices.
Now more than ever, we’re seeing the impact that IP PBX technology can have on the need for mobility and remote work.
Users can use a web browser or smartphone to manage their communications and maintain the same business phone number.
Cloud or IP PBX solutions are:
Scalable: It’s quick and easy to expand an IP phone system with new extensions and numbers.
Flexible: Companies can infuse their PBX with call centre functionalities, like auto attendants, call forwarding rules and advanced queue strategies.
Adaptable: The current IP PBX system can easily transfer larger multimedia data packets through the web.
This means you can handle not phone audio calls but web conferencing connections, video calls, and instant messaging.
Extensible: In the cloud, companies can combine their IP PBX environment with other functionalities and tools for a comprehensive UCaaS experience.
Global: The right PBX vendors can offer data centres to help you transfer packets of data and communication information anywhere in the world.
From PBX to Unified Communications
Now PBX technology takes the potential of IP connections to the next level, with the promise of unified communications.
The introduction of cloud and internet-based services was a crucial revolution in the communications landscape. Call routing today is only a minor ingredient of the whole communication formula.
PBX solutions in the age of UC are rarely advertised as standalone services. Instead, you get your PBX technology bundled with other essential features for team connectivity.
Features can range from traditional PBX components to video conferencing support and voice-to-text recordings.
PBX technology now operates alongside instant messaging tools for collaboration in the hybrid workforce, video conferencing, and group calling.
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