Hardware Then, Software Now: The New PBX

A Customer Center entry from August 27, 2007

Once upon a time, a PBX (private branch exchange) was a hardware-based system. The PBX was a hardware device, and the phones were physically wired to it. This type of PBX setup was often expensive to buy, so usually it was installed only in large corporate offices. It was also inflexible, in that the PBX and the phones usually had to be purchased from the same company. The hardware for a PBX, in other words, was proprietary; once you locked in with a particular vendor, you couldn't switch without buying a whole new system.

How times have changed for the PBX! Today, even small companies can afford to buy a PBX. The change has occurred due to advanced technology that transformed the PBX from hardware to software. The ability to send voice as data packets over an IP network gave birth to the IP PBX.

An IP PBX offers many advantages over its hardware ancestor. Many of these have to do with the software nature of today's PBXs. With a software PBX, instead of using physical components to manage voice connections, it is all done by a computer system. A software PBX is cheaper, faster and easier to develop than a hardware-based PBX.

Of course, hardware in some form is still involved - the PBX continues to send voice signal over some type of wire. Today, though, the PBX uses existing IP networks rather than separate connections for voice only. This means a company can reuse, if you will, its computer system hardware to run the PBX.

Using a software model, typically coupled with a relatively inexpensive gateway/switch device that translates analog voice into digital packets, today's PBX is also more flexible. By using software to run the system, companies have more choices and can customize their PBXs to suit specific needs.

The software PBX is so flexible, in fact, that the same solution may be used by many different types of organizations. Specialized PBX features may be available as built-in components of the software, or be available as a PBX add-on. Despite this customization, software PBX prices remain low. The reason is that vendor can build a core software PBX package and then add additional features with minimal investment. The savings associated with this efficiency are passed onto the company buying the PBX.

Choosing a software PBX also means the company buying it can increase efficiency. How? A software PBX is much easier to manage than a hardware PBX. Many companies are finding they can roll PBX management into their IT department. This means doing away with specialized staff who know how to run a hardware PBX.

Software PBX systems are often so easy to manage- typically using a Web browser interface- that no specialized knowledge is needed. IT staff at most organizations can now handle PBX management with little or no additional training. This aspect of a software PBX is a real boon for companies that need to keep tight budgets in order to stay competitive.

In short, by moving from hardware to software, the PBX has become a much more useful tool for businesses of all sizes.

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Mae Kowalke previously wrote for Cleveland Magazine in Ohio and The Burlington Free Press in Vermont. To see more of her articles, please visit Mae Kowale's columnist page.

— August 27, 2007