IP-PBX: Business Phone System, The Next Generation

A Customer Center entry from April 18, 2007
by Mae Kowalke - TMCnet Associate Editor for Channels

What’s the difference between an IP-PBX and a PBX? Traditional private branch exchanges, or PBXs, are often viewed by businesses as a necessary evil. Typically they’re expensive (in many cases priced beyond the range the small business market), difficult to install and maintain (requiring service provisioning and/or specialized staff), and very complex to configure (difficult even for trained IT staff).

An IP-PBX turns this equation on its head by offering a software-based phone system that is affordable even for small businesses, easy to install and maintain, and a breeze to configure using a graphical user interface.

Today’s small businesses are migrating to IP-PBXs in droves because of the advantages such systems can offer. An IP-PBX delivers advanced features and easy maintenance at a fraction of the cost of traditional PBXs. For many companies, the switch is a no-brainer. Those who have made the move know that an IP-PBX benefits everyone in the company, from the receptionist to the sales staff.

An IP-PBX is not just a new form of phone system; it represents a revolution in business communications, putting a company in control of what is arguably its most important asset. Regardless of the industry a company operates in, an IP-PBX offers the benefits of flexibility and affordability which can significantly improve efficiency and positively affect the bottom line.

An IP-PBX offers small businesses phone system features that simply weren’t accessible in the past. These include capabilities like unlimited extensions, music on hold, and call queues. An IP-PBX, by its very nature, also offers features that simply were impossible to deliver with a traditional PBX. These IP-PBX capabilities include Web-based administration, voicemail integration with Outlook, and screen pops.

Small businesses also can realize significant cost savings by using an IP-PBX. An IP-PBX is software based, so there is no need to purchase expensive hardware for an on-site PBX; as a result, capital expenditures (CAPEX) are slashed. Most IP-PBX solutions are offered on a hosted basis, so management is performed by the provider as part of the contract; as a result, operating expenditures (OPEX) are also dramatically reduced.

There are so many advantages to an IP-PBX that small businesses may be slightly overwhelmed at first by how transformative making the switch to an IP-based phone system is. IP-PBX features like digital receptionist, call forwarding, extension groups and conferencing are terrific time savers and efficiency boosters. Bottom line is, an IP-PBX can help a small company stay nimble and competitive without having to shell out big bucks or lots of administrative time.

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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.

— April 18, 2007