Difference Between PBX and IP PBX

PBX vs IP PBX

A PBX (Private Branch Exchange) was developed to provide large companies a cost reduction in their telecommunications bill by letting them handle their own telephone system while still providing a trunk line for calling outside the companies network. An IP PBX (Internet Protocol PBX) is an improved version that brings the PBX systems into the 21st century. The single most significant feature addition to IP PBX is VoIP support. VoIP lets companies route calls over the internet reducing costs even further, especially with long distance calls. Since an IP PBX system is designed to work with packet-switched networks, it is also capable of handling data and can even synchronize with outlook.

The internal operations of an IP PBX have also been converted to software instead of hardware, like the older PBX systems do. This makes IP PBX systems so much more flexible than older PBX. The consistent improvement of microprocessor technology meant that they are now much cheaper and much faster to implement. IP PBX are also more scalable compared to traditional PBX systems. In older systems, you are limited to a certain number of lines as they are hard wired to the circuitry. With IP PBX, you can add as many extensions as you want but how many concurrent calls can occur is still limited to your hardware‘s capabilities. Upgrading your current IP PBX is also much easier compared to older PBX systems. Adding additional features is also as easy as a software update that is usually released by the manufacturers.

The high price of PBX systems means that most companies cannot just instantly upgrade their system regardless of the advantages. As a result a lot of the older PBX systems are still in use today. But as the aging systems are beginning to wear down, companies have no choice but to replace the hardware. But instead of using the same PBX, most are looking to implement an IP PBX to take advantage of the benefits.

Summary:
1.IP PBX adds IP VoIP support to the older PBX systems
2.PBX can only handle phone the switching of phone conversations while IP PBX can handle both calls and data
3.Most functionalities of an IP PBX is done with software unlike a PBX where it is commonly done by hardware
4.An IP PBX is very scalable while a PBX system is limited to the designed number of slots
5.Most companies are now installing IP PBX systems rather than PBX

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