VoIP vs PBX: Which Business Phone System Is Right For Your Business?
All successful organizations have a modern and efficient business phone system in place. If your company is thinking of upgrading your current business phone system, should you go for a Voice over Internet Protocol (VoIP) or a Private Branch Exchange (PBX) service? While both have the same goal (quick and reliable work communications), they have significant differences. We’ll explain the pros and cons of each so you can arrive at an informed decision.
Features
PBX is an analog or digital business phone system that connects your organization over a physical phone line. With a PBX business phone system, all desk phones are connected to the same network. Extensions are used to redirect calls, which allows you to have more phones at your business.
PBX business phone systems require compatible phones. Some phone providers may even sell specific hardware that is required to use their service.
VoIP, on the other hand, transmits voice data through the internet. Since VoIP business phone systems are digital, these can be used with almost any digital device. You can either purchase digital handsets for the office or just use computers and tablets as phones.
With a PBX business phone system, call routing, recording, and voicemail options are limited to the handset’s built-in features.
Unlike PBX, VoIP business systems can interface with a wide variety of digital platforms. You can record calls automatically using software on your computer or set up auto-transcription for calls and voicemails. VoIP systems can also interface with automation workflow software, making it possible to route internal calls to one voicemail account and external calls to another.
Cost
A VoIP business phone system is more affordable than PBX since it doesn’t require as much infrastructure; all that’s needed are IP phones, power sources, and internet connection. Monthly costs are also lower since it follows a subscription-based payment scheme instead of individual phone line payments. You can pay as low as $20 a month for a VoIP service; this rate can go even lower depending on the size of your operations.
Call quality and reliability
Both PBX and VoIP business phone systems deliver exceptional call quality. However, insufficient bandwidth and network configuration issues may affect the quality and reliability of VoIP calls. Make sure to engage the services of a reputable internet service provider for a hassle-free experience.
Flexibility
VoIP systems have the advantage when it comes to flexibility. With VoIP, you are only limited to your bandwidth and Internet connection, so you can add users as your company grows.
Whether it’s PBX or VoIP, Pivotel Networks is committed to helping clients find the best business phone system for their needs. Our experts can help determine the right solution for any business regardless of size. If you’re a business in Knoxville TN, get in touch today – we would be happy to sit down and discuss your options.
Serving Knoxville, TN, and surrounding areas, business phone systems expert Pivotel Networks strives to be your advocate and ally in an ever-changing world of telecommunications and technology. Call (615) 499-7900 for more information.