PBX System | PBX Server | PBX Switch | WhichPBX.com
What Is A PBX System , Server or Switch?
PBX stands for private branch exchange. A PBX system allows companies, through the use of certain PBX hardware, to connect internal lines and create an internal telephone system that does not require the use of external, telecommunications-company-owned, lines. The PBX system connects the internal lines to one, or more, external lines for the ability to call numbers not located on the internal network. A PBX system functions by providing the internal lines with identifiers – known as extensions. These extensions are three of four digit numbers that can be dialed from an internal phone to reach another internal phone. The traditional PBX system saves money by having internal calls be connected on their own network rather than using a telecommunications-company-owned line for each internal call. The PBX system is also known as a PBX server or a PBX switch
Traditional PBX systems are best for larger businesses and governments. There is a large upfront investment in equipment and technicians to install, monitor, run, and maintain the system. In order to have any sort of positive return on investment in a traditional PBX system, there has to be a large number of internal lines that would otherwise be running on external lines. Having a few lines, even if those few lines make a lot of calls, does not mean that you will get a good return on investment from a traditional PBX system. There must be a large number of lines that would call each other often in order to make a good return on investment for a traditional PBX system.
VoIP phones or traditional landline phones can be used in a traditional PBX system. A traditional PBX system, because it is hardware based and connected to one location, cannot handle mobile phone lines – the phone lines it handles must be based in a physical phone connected to the PBX system through wires. Mobile phones do not fit into this description. Therefore, a company which relies primarily on mobile phones would not benefit from a traditional PBX system.
A company that is widely dispersed would also not benefit from a traditional PBX system. Since the traditional PBX system requires the phones to be physically connected, a company with multiple small offices, or a company which is home-based, would not be able to have enough lines connected in one spot to benefit from the investment. These types of companies need a different type of PBX system – a hosted PBX system – instead of the traditional PBX system.
Traditional PBX systems have a large upfront cost. They also require the phone lines to be in one physical location. A traditional PBX system, in order to have a good return on investment, requires a lot of internal phone lines that call each other often. All of these are characteristics of larger companies and government agencies. Smaller companies and individuals simply do not have the resources to make a traditional PBX system a good investment. However, larger companies can really benefit from a traditional PBX system.
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