Advantages of IP PBX over Traditional PBX

For decades, many enterprises relied on a Private Branch Exchange (PBX) system to manage and control their business communications. Companies that use a PBX system share a certain number of outside lines to make external calls. Sharing a line instead of using numerous dedicated phone lines allows companies one main number, and then extensions for each employee. This, in turn, saves on monthly phone bills for the company.

Today, however, most businesses have started making the transition from traditional PBX systems towards better and more improved network-based IP PBX solutions. An IP PBX is a PBX phone system that uses Internet Protocol (IP) data networks instead of the conventional analog technology to deliver telephone services. Deploying IP PBX solutions in place of a traditional PBX delivers numerous benefits to companies.

The following are some of the top advantages of using an IP PBX over a traditional PBX system.

  1. Cheaper and easier to install and to configure

Because IP PBX systems run as software and don’t require expensive PBX equipment, enterprises can save on installation costs. Typically, the only thing businesses need to invest in upfront is the phones themselves, but even this can be eliminated with the use of softphones. For reference, a softphone is a software program that enables users to make VoIP telephone calls (or calls made through the internet) using a computer or smartphone.

  1. Lower communication costs

Perhaps the biggest advantage offered by IP PBX solutions is the reduction of communication costs. Calls made through IP-based systems (both local and international) are far cheaper than those made through a traditional business phone system.

Most IP PBX service providers offer free unlimited local and long-distance calls within the United States and Canada. International calls with an IP PBX can cost between $0.01 to $0.10/minute; whereas international calls through traditional PBX carriers can often cost as much as $3.00/per minute. The significant cost savings from IP PBX solutions are especially beneficial for companies with multiple branch offices or companies that have employees working remotely.

  1. Easier management

Unlike traditional PBX systems that require the assistance of skilled phone technicians to maintain the system, IP PBX solutions are relatively simple to manage. Most IP-based phone systems come with an easy to use web-based configuration interface that makes it easy for users to manage, configure, or fine tune the phone system. An IP PBX can also be accessed remotely, which means authorized users can easily monitor and make changes from anywhere.

  1. It’s scalable

Traditional PBX systems are not suitable for growing businesses because adding phone lines or extensions often means purchasing additional hardware or upgrading to an entirely new phone system, which is definitely not cheap. IP PBX solutions, on the other hand, are designed with scalability in mind. It allows enterprises to easily add or remove any number of users or extensions at little to no cost.

Jive, for example, allows companies to utilize an unlimited number of extensions at no extra cost. Setting up company extensions is also easy with RingCentral, where administrators can simply log in to the Admin Panel to add or delete extensions with ease.

  1. More advanced features

In addition to standard PBX features, companies using an IP PBX system can take advantage of an array of advanced features such as Find Me/Follow Me, Auto Attendant, Unified Messaging, Video and Audio Conferences, Instant Messaging, Contact Center functionalities, Mobile Accessibility, and so much more. These sophisticated features support the needs of an increasingly mobile and collaborative business environment and help to promote efficiency and productivity in the workplace.

Make the switch today!

From cost savings in installation and calling rates, scalability, to easier phone management, IP PBX systems offer plenty of advantages to businesses. So if you haven’t switched to an IP PBX yet, then it’s time to consider making the move.

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