What is IP PBX?
An IP PBX is a telecommunication device that provides voice connectivity to desk phones within a building. It oversees the outgoing and incoming calls across its telephone network using an internet connection.
Let’s break down this definition further.
IP – Internet Protocol (IP) is the method of transmitting data to another server. This technology means that calls are established over the Internet.
PBX – A Private Branch Exchange is known as a PBX, which is an internal telephone network. A PBX exists on-premises, or you can host it from the cloud securely.
An IP PBX phone system can make and receive phone calls over the internet while maintaining analog phones throughout the office
You can configure a PBX using open-source solutions that require knowledge of Linux. You should also know about call routing, and comfort managing Asterisk-based PBX servers. There are many pros and cons to this approach. It’s not for everyone.
But first, let’s look at how we got here.
History of the PBX
A PBX functions much like a switchboard operator. Switchboards first appeared 1878, two years after the telephone itself was invented.
Select employees had access to a phone line. When an external call came through, the operator answered and transferred the caller to your line. Offices had separated its telephone system from the rest of the Public Switched Telephone Network (PSTN).
Back then, toll charges were a big deal. The cost of initiating phone calls to colleagues and customers (including personal calls) added up fast. This era was long before cell phones.
Fast forward to the 1970s. The PBX evolved in its functionality. It could automate the routing of calls. Inbound phone calls were answered and “attended” when callers could reach phone extensions. Also, at the time, mail-order catalogs with toll-free phone numbers sparked a higher volume of calls with commercial intent.
By the time the 1990s rolled around, automated telephone systems were standard in the business world. Enterprises adopted advanced features like Interactive Voice Response (IVR), call forwarding, caller ID, and Voice over Internet Protocol (VoIP).
It wasn’t long after administrators installed a PBX, they eyed features from the next generation of telecom hardware. Born out of frustration from replacing proprietary equipment, the hosted PBX rose in popularity.
Call centers in the early 2000s have pioneered today’s PBX features such as headsets, softphone apps, and call routing. Innovations like these provided significant cost savings from analog phone systems.
How does an IP PBX work?
IP PBX phone systems place and receive phone calls over the internet. It does so by converting analog voice signals into digital. From there, it directs calls to a VoIP service provider to manage the initiation and termination of every call.
At the core, IP-based voice service uses Session Initiation Protocol (SIP). This universal protocol has become the standard for VoIP phone systems. For a PBX, you would use SIP trunking, which offers multiple voice channels.
SIP Trunking Diagram – SIP trunking connects existing communications hardware to the telephone network.
SIP trunking connects existing communications hardware to the telephone network.
On the inner side of a PBX, that remains unchanged. Users can call each other, check voicemail, and set up call groups as they could before. It’s by design.
On the outer side of a PBX, a VoIP provider would give a set of credentials for one or more SIP trunking accounts. Once authenticated, incoming calls are presented to your PBX to accept. Users can also reach an outside phone line by way of your SIP trunk automatically.
The PBX itself determines if calls are handled internally or relayed over to the PSTN.
You should know its limitations, but first, here are the advantages of adding a VoIP gateway to your PBX
Benefits of IP PBX systems
Adopting an IP PBX in your business can come with some perks. Here are some reasons why it’s a wise investment.
Lower communication costs – Internet-connected PBXs can provide much higher cost-savings than their analog predecessors. VoIP providers like Nextiva offer both metered and unmetered trunking services.
Cloud-based reliability – Connect your existing PBX to the proven reliability of the cloud. A reliable VoIP service will have multiple data centers for dependable performance. Even if your PBX goes down, they can route calls elsewhere.
Keeps existing hardware – You can keep everyone productive and keep your hardware costs low by using the same hardware that’s already attached to your PBX. The only thing you need is your SIP address, password, and domain, and you’re set.
Minimal change – Change can be intimidating to many businesses. Look to SIP trunking as a gateway to experiencing the value of a VoIP phone system. As your company grows, you can scale up the number of voice channels with minimal configuration.
Suppose you or your IT staff are already familiar with PBX phone systems. In that case, an IP PBX could be a smart stop-gap solution. Additionally, SIP trunks are location-agnostic, so you can get up and running in record time if you move offices.a
IP PBX System Conclusion
IP PBX systems represent a pivotal advancement in telecommunications, offering unparalleled flexibility, scalability, and cost-effectiveness for businesses of all sizes. By leveraging internet protocols, these systems streamline communication processes, integrating voice, data, and video seamlessly. Enhanced features such as call routing, voicemail-to-email transcription, and remote access empower organizations to optimize productivity and enhance customer interactions. Additionally, IP PBX systems facilitate easy integration with existing infrastructure and enable future-proofing through software updates. As businesses continue to prioritize communication efficiency and adaptability, IP PBX systems stand as a cornerstone solution for meeting evolving needs in the digital age.
