PBX phone systems use both hardware and software to connect devices such as routers, phones, adapters, and servers. The term dates back to the days of manual switchboards and patch cords, but the technology has evolved a lot over time.
Modern systems like IP PBX and VoIP PBX offer more cost-effective solutions with more productivity-enhancing features like call recording and voicemail-to-email capabilities.
If you are looking to upgrade your traditional phone lines to a PBX, this guide will explain everything you need to know to make the process as smooth as possible.
1. There are three types of PBX systems
As a business owner, the most important decision you need to make at the beginning of the implementation process is whether to choose on-premises PBX, hosted PBX, or hybrid PBX.
Let's take a closer look at each one:
On-premise PBX
Also known as a traditional PBX or legacy PBX, this is a hardware-based system that is installed in the office. It connects to the public switched telephone network (PSTN) using primary rate interface (PRI) telephone lines. It usually has a significant upfront cost and requires ongoing maintenance.
Hosted PBX
Commonly referred to as a cloud PBX or virtual PBX, a hosted PBX is a cloud-based phone system that manages your business's calling and communication services. Instead of physical hardware on-site, your phone system is managed by a third-party provider in their data centers.
With it, you'll get access to advanced telephony features like voicemail, call routing, and conferencing without the need for complex and expensive equipment in your office. Hosted PBX systems are scalable and typically more cost-effective for small to medium-sized businesses.
Hybrid PBX
A hybrid PBX combines a traditional office phone system with Internet-based features. It allows you to keep your regular office phones and take advantage of online tools for additional capabilities and remote work options. The hybrid PBX is particularly useful for businesses looking to transition to a hosted system.
2. Hosted PBX is easier to manage
Thanks to the power of VoIP (Voice over Internet Protocol), the hosted PBX is truly a plug-and-play system. Instead of dealing with the challenges of an on-premise system, you can enjoy the convenience of a cloud solution.
All you have to do is register an account and sign up for a plan with a provider, just like any other online service you use. You can also easily upgrade or downgrade your plan, depending on your business growth or seasonal peaks. Plus, as new features or functions are released, accessing them is as simple as running a software update.
In contrast, the initial installation and configuration of an on-premise PBX requires a lot of work to get up and running, ranging from ongoing maintenance to hiring an outside technician. If you don't have dedicated IT staff, you may need to hire an outside technician to perform maintenance. This can lead to downtime or service interruptions and eat into your budget.
3. You can add VoIP to an analogue PBX
If you want to add VoIP capabilities to a legacy analog PBX, you can employ a Session Initiation Protocol (SIP) gateway.
Basically, SIP enables communication over the Internet. It allows for the transmission of voice and multimedia data, making it the backbone of VoIP services. It is also used to establish, modify, and terminate sessions in real time, such as voice calls over IP networks.
When someone makes a call using the traditional analog PBX, a SIP gateway converts the analog signal into digital packets. These digital packets are then sent over the Internet to their destination, whether that is another VoIP phone, a mobile device, or even a traditional landline.
VoIP has many benefits for businesses, including:
- Access to new features:The best VoIP phone services offer advanced features that may not be available on traditional analog phone systems. These include features like video conferencing, call recording, call forwarding, call routing, and voicemail transcription to email.
- ScalabilityThese systems are highly scalable, allowing businesses to add new lines or extensions as needed without the limitations of physical wiring.
- Cost savingsVoIP typically costs less, especially for long distance and international calls.
- Remote Work SupportEmployees can easily connect to the company's phone system from anywhere with an Internet connection, making it ideal for teleworking.
4. VoIP PBX offers real-time call analysis
Real-time call data can shed light on important parts of your operations, such as call volume and customer wait times, which directly impact customer satisfaction.
This type of information can be very challenging (if not impossible) to collect with traditional PBX systems. But with VoIP PBX phone systems, the data is at your fingertips.
Your VoIP account will give you immediate access to a wealth of call analytics and insights through real-time data. This allows you to quickly and easily identify call trends, evaluate agent performance, and ensure your customers receive the fast, efficient service they expect.
This level of insight allows your business to stay agile and responsive, ultimately improving the overall customer experience.
5. Cloud PBX can save you money
Cloud PBX systems are cheaper than traditional options for many reasons, but the biggest advantage is that you won't need to purchase a lot of equipment to implement them. With a cloud-based PBX phone system, you'll be able to use the devices your team already has, such as desk phones, softphones, mobile devices, and headsets.
The costs associated with scaling operations are also lower with a cloud PBX system. If you plan to add more phone lines or new users, hire employees in different countries, or communicate with international clients, cloud PBX is an economical option.
This is because VoIP providers allow you to adjust bandwidth and customize features without requiring any changes to your office's physical infrastructure. You can add new users and remove them whenever you need to, right from your online account.
Cloud-based collaboration solutions are also typically the most cost-effective on a monthly basis.
When looking for a PBX provider, it's important to consider the additional costs you might have to pay for other software that's already in use. For example, you may be able to bundle video conferencing software, call recording tools, file sharing, and virtual whiteboard solutions with your VoIP PBX.
By migrating to a unified solution, you can access a wide range of communication channels and collaboration tools, all within the same platform. This streamlines call agent operations, consolidates costs into a single monthly bill, and saves money by helping you move away from expensive, single-function software products.
6. Hosted PBX connects to other software
Transitioning to new communication tools can seem overwhelming, especially if your team already has systems in place. The good news is that a hosted PBX service offers integrations with the most popular third-party applications. These connections streamline your team’s workflow and minimize manual data entry, saving them time and effort.
Nextiva, for example, offers an app marketplace that connects with popular marketing and sales apps, such as Zoho and Salesforce. When integrated, these platforms pull in relevant contact details, making it easier for users to access customer information during calls or support interactions.
7. The right PBX depends on operations
Now that you know all about the different PBX systems and what they can do, which one should you invest in? The answer depends on how your business and your teams operate.
If you only use landlines to make local calls or have already spent a lot on your existing infrastructure, a traditional solution may be the best option.
But if your team needs to make calls domestically or internationally, work remotely, or have access to call tracking features, what you need is a hosted PBX that is connected to a VoIP provider. Hosted systems are also the best option for businesses starting from scratch.
Here are some of the things you should consider when choosing a VoIP provider:
- Reliability:A modern PBX is only useful when it is up and running. It is important to choose a service that is online most of the time. Look for a provider that promises 99.999% uptime or higher.
- FlexibilityModern phone systems can work with regular VoIP desk phones or softphones that you can use on your computer or smartphone. This means you have options for making and receiving calls.
- SupportIf something goes wrong with your phone system, you'll want a team you can trust to help you out.
- Cost:When choosing a service, make sure it fits your budget. Look for a provider that offers plans you can afford and ask about discounts for annual payment.
- Security:To keep your phone system secure, look for a provider that has 24/7 monitoring and special certifications like SOC 2 or ISO/IEC 27001, meaning it meets certain security standards. You may also want to consider features like call encryption to keep your calls private.
The right PBX solution can unlock key areas of your business. It can enable remote work, help you get more clients, and deliver a better experience, making it a valuable asset to your company.
