The world of telecom/VoIP terms is an overlapping muddle of "same same however various." PBX, IP PBX, hosted PBX: They're as similar as their names indicate however distinct. Many people charged with finding a new organization phone system aren't knowledgeable about these terms, let alone the particular distinctions that affect their purchasing choice.

And why would anybody keep up with telecom specs? Once you have a phone system in location, it's ideally something you rarely believe 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 site. So let's enter it.

IP PBX

You may know the term PBX: personal branch exchange. are bulky and pricey, and standard analog systems connect directly to PSTN copper lines. Modern PBX systems-and by "modern" here we indicate post-Internet-are IP PBX to deal with digital traffic. Basically, IP PBX is where PBX meets VoIP abilities. IP PBX systems are still on-premises, so they're not the less expensive hosted PBX from a VoIP company like OnSIP.

Onsite PBX systems need a lot of area and a dedicated IT team. For corporations, they can work well, but they're excellent for cash-strapped start-ups and SMBs that may not have the workplace for a telco-only server room, let alone the budget for the needed IT folks.

VoIP Gateways: Bridging PSTN & VoIP
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PSTN calls send out voice signals along copper wiring. VoIP calls break voice signals down into little digital packages 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 2 systems by changing call traffic from analog to digital and vice versa. Without it, the signals would get stuck trying to switch from one to the other.

VoIP to VoIP calls are similar to emails or instantaneous messages: They make up data packets cruising through cyberspace. 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 electronic devices work fine-they simply need a translator for different voltages and outlet shapes.

Which Do You Choose?
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At the beginning of this blog site, we discussed that all of this tech is basically the exact same but different. This is a terrific way to sum it up, however it's not as helpful when you actually need to choose one. Do you desire 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 might help clear some things up: All hosted PBX systems are VoIP, however not all VoIP is hosted PBX. An IP PBX system is better to the tradition PBX systems, simply upgraded for IP compatibility. The system still lives onsite, with all of the associated costs, much of which are in advance. Hosted PBX, on the other hand, is handled by a provider, and includes hardware, staff, and maintenance. All you need to do is have a good Internet connection and VoIP phones.

If you're seeking to update your existing PBX system, IP PBX might be the ideal relocation. Otherwise, hosted VoIP has all of the tools and quality you need for smooth business operations.