The world of telecom/VoIP terms is an overlapping muddle of "same same but various." PBX, IP PBX, hosted PBX: They're as comparable as their names indicate but unique. Many people charged with finding a brand-new service phone system aren't familiar with these terms, not to mention the specific distinctions that affect their purchasing choice.
reference.com
And why would anybody stay up to date with telecom specs? Once you have a phone system in place, it's ideally something you seldom think deeply about again. The exception, of course, are the fortunate market folks who dive into the mess to bring you tech-to-English translations like this OnSIP blog site. So let's enter it.
counterpath.com
IP PBX

You may understand the term PBX: private branch exchange. PBX systems are bulky and costly, and traditional analog systems connect directly to PSTN copper lines. Modern PBX systems-and by "modern" here we suggest post-Internet-are IP PBX to deal with digital traffic. Basically, IP PBX is where PBX satisfies . IP PBX systems are still on-premises, so they're not the less costly hosted PBX from a VoIP provider like OnSIP.

Onsite PBX systems require a lot of area and a dedicated IT group. For corporations, they can work well, however they're terrific for cash-strapped startups and SMBs that might not have the workplace for a telco-only server room, not to mention the budget for the required IT folks.

VoIP Gateways: Bridging PSTN & VoIP

PSTN calls send voice signals along copper electrical wiring. VoIP calls break voice signals down into little digital packages for travel throughout the Internet. In other words, the PSTN is analog, while VoIP is digital. A VoIP gateway is the piece of hardware that bridges the 2 systems by altering 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 resemble emails or instantaneous messages: They make up information packages travelling through cyberspace. This is why VoIP to VoIP calls are generally totally free. For VoIP to PSTN calls, the signals need a converter. Think of the VoIP entrance like your outlet converters when traveling worldwide. Your electronics work fine-they just need a translator for various voltages and outlet shapes.

Which Do You Choose?

At the start of this blog site, we discussed that all of this tech is generally the very same however different. This is an excellent method to sum it up, but it's not as practical when you in fact have to choose one. Do you desire IP PBX or a VoIP entrance? Cloud or on-premises? Include SIP trunking questions and you'll feel you're back to square one.

This may assist clear some things up: All hosted PBX systems are VoIP, however not all VoIP is hosted PBX. An IP PBX system is more detailed to the tradition PBX systems, simply upgraded for IP compatibility. The system still lives onsite, with all of the related expenses, much of which are in advance. Hosted PBX, on the other hand, is handled by a service provider, and includes hardware, personnel, and maintenance. All you need to do is have a good Internet connection and VoIP phones.

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