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The world of telecom/VoIP terms is an overlapping muddle of "same same but different." PBX, IP PBX, hosted PBX: They're as similar as their names indicate however unique. Most people charged with finding a brand-new company phone system aren't familiar with these terms, not to mention the particular differences that impact their purchasing 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 hardly ever think deeply about again. The exception, naturally, are the fortunate market folks who dive into the mess to bring you tech-to-English translations like this OnSIP blog. So let's enter it.
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IP PBX

You may know the term PBX: private branch exchange. PBX systems are bulky and costly, and traditional analog systems connect directly to PSTN copper lines. Modern PBX systems-and by "modern" here we mean post-Internet-are IP PBX to manage 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 supplier like OnSIP.

Onsite PBX systems need a great deal of space 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 space for a telco-only server room, not to mention the spending plan for the essential 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 change from one to the other.

VoIP to VoIP calls are similar to emails or instantaneous messages: They make up information packets cruising through . This is why VoIP to VoIP calls are usually free. For VoIP to PSTN calls, the signals need a converter. Think of the VoIP entrance like your outlet converters when traveling internationally. Your electronics work fine-they simply need a translator for different voltages and outlet shapes.

Which Do You Choose?

At the start of this blog, we discussed that all of this tech is generally the exact same but various. This is an excellent way to sum it up, however it's not as practical when you actually have to choose one. Do you desire IP PBX or a VoIP entrance? Cloud or on-premises? Add in SIP trunking concerns and you'll feel you're back to square one.

This may help clear some things up: All hosted PBX systems are VoIP, but not all VoIP is hosted PBX. An IP PBX system is closer to the legacy PBX systems, simply upgraded for IP compatibility. The system still lives onsite, with all of the related expenses, much of which are in advance. Hosted PBX, on the other hand, is handled by a company, and includes hardware, staff, and maintenance. All you need to do is have a good Internet connection and VoIP phones.

If you're looking to upgrade your existing PBX system, IP PBX may be the ideal relocation. Otherwise, hosted VoIP has all of the tools and quality you need for smooth company operations.