PBX for the Small Business

A Customer Center entry from October 2, 2007
by Mae Kowalke - TMCnet Associate Editor for Channels

Traditionally, a phone system used by a business had three main components. The first phone system component was voice service, delivered to the building by a provider using TDM cable. The second phone system component was a hardware PBX or switchbox used by the company to bring voice to employee desks. The final phone system component was desktop phones—one per employee.

All of these phone system components made it possible for employees to communicate using voice with both colleagues and customers—both in other parts of the building, and on the other side of the world. This basic function of a phone system hasn’t changed, but the way it’s delivered has—and in the process new features have been introduced.

With the advent of IP communications technology, the phone system has changed quite a bit. Today, there are still three main components of a phone system that is based on IP rather than TDM. The first phone system component is a broadband Internet connection coupled with a Voice over IP (VoIP) service, delivered to the building by a provider. The second phone system component is a software PBX that controls extensions and other end-user features. The third phone system component is the phones—either hardware phones or computer-based softphones.

There are a number of advantages to the new type of phone system. For one thing, today’s phone system delivers advanced functionality at a fraction of the cost of a hardware PBX. This is because phone system features like voicemail, call forwarding and --- are all digital. As a result, the phone system does not require expensive hardware updates. New phone system features are inexpensive for the vendor to create, and this savings is passed on to the business.

An IP-based phone system also save companies money because they no longer need to pay for phone and Internet access—all voice and data services run off the same connection. Often, using VoIP rather than traditional PSTN service for a phone system saves a bundle on long-distance toll charges. Plus, by going to a digital phone system, companies gain access to affordable recording and monitoring solutions.

The new phone system saves money in other ways, too. For example, a modern, software-based phone system is much easier to manage than a hardware PBX. Just as the new phone system eliminates the need for a separate TDM phone service, the new phone system also typically cuts down on need for support staff. Many companies find that a modern phone system can be run by the IT staff with no voice specialists required. This phone system advantage comes thanks to Web browser-based administration interfaces.

Finally, as discussed throughout, an IP-based phone system delivers advanced features at a price affordable even for small businesses. Traditionally, only enterprises could afford a full phone system with complete set of PBX features. Now these phone system features are helping small companies compete on a global scale.

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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 Kowalke’s columnist page.

— October 2, 2007