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PBX technology terminology can be very confusing. WhichPBX.com helps address this challenge by providing a number of informative PBX and VoIP related articles.

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VoIP PBX | WhichPBX.com

What Is A VoIP PBX?

Voice over internet protocol, also known as VoIP, is the up and coming communications technology. VoIP allows a person to use their computer as a phone, transmitting the audio communications over the internet instead of over a traditional telephone line. This allows for cheaper phone service. VoIP technology also means that telephone service can be disconnected from the requirement of a physical location and instead tied to the internet. The lower cost and improved connectivity options offered with VoIP make it very attractive to businesses of all sizes.

There are two ways to have a VoIP PBX system. The first is to have a traditional PBX system that handles VoIP lines. The second is to have a completely virtual, software based, PBX system that uses VoIP lines. Depending on which type of system is chosen, there are different businesses that can use it.

If a traditional PBX set-up is used to handle VoIP lines, the cost of the PBX set-up and maintenance will price out many small companies and individuals. Instead, it will be available only to larger companies and governments – just like a traditional PBX system that uses landlines. Instead of using landlines, the VoIP PBX system, in this scenario, will use the company’s intranet to connect all the phones together and establish connections between various extensions.

The more innovative use of a VoIP PBX is to handle VoIP lines. When a VoIP PBX system is set up as a software program, it becomes much more cost effective for smaller businesses and individuals. This is because the software, unlike a traditional PBX system, does not require maintenance technicians or the purchase of hardware. Indeed, there are many open source programs that can be used to establish a VoIP PBX system.

There is also the possibility of using a host to provide the VoIP PBX service. If the VoIP PBX service is hosted, instead of provided by the company (whether they use PBX hardware or a PBX software program), multiple VoIP lines can be combined with mobile lines and landlines into one, integrated PBX system. For a small business that wants to use mobile phones, landlines, and VoIP services – or two of these three – a hosted VoIP PBX would be the best option. It will allow the small business to save money on internal calls and provide the small business flexibility to add additional lines, or remove them, without a hardware cost.

VoIP PBX is best used for businesses of all sizes when the VoIP PBX system is software based. By basing the VoIP PBX in software, rather than hardware (like a traditional PBX system), the company is provided flexibility in adding and removing lines because there is no hardware cost associated – the software simply has to add a line. Additionally, the software provides for flexibility in which type of VoIP lines are added (mobile or non-mobile lines), instead of requiring a physically located telephone. The VoIP PBX system can be hosted or placed on-site. The flexibility of a software based VoIP system provides the best options for businesses.

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