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shutterstock_264466157With more available options for communications, many businesses are looking at what service they should use for their telephone line: a more traditional Private Branch Exchange (PBX) or the newer Voice over IP (VoIP).

Both services have their advantages and disadvantages, including cost and reliability. PBX may be an easier option for internal employees, because it allows businesses to connect all their internal phone lines to a single leased external phone line. In most cases, this means that employees would only need to dial an extension number rather than dialing the full number to call a coworker.

VoIP, on the other hand, uses the Internet to make phone calls by transferring audio information as digital data. It possesses many of the same benefits as a PBX, but it has a lower cost. However, there are also some disadvantages to a VoIP system, leading some businesses to consider an IP PBX system, a combination of the two.

Cost

For large businesses or those that are geographically dispersed, cost may be the single biggest factor in whether to choose PBX or VoIP.

Using a PBX system comes with a monthly charge that can fluctuate depending on how many phone calls are made. In addition, whether or not these calls are made internationally can increase the price. However, VoIP systems use the company’s broadband connection to place phone calls, meaning that the majority of the calls are free no matter where in the world the person is calling. Another benefit of VoIP is a low initial cost; instead of an entirely new system, businesses only need to purchase phone adapters that will change their system from analogue to digital.

Reliability

While cost is lower for VoIP, its reliability can sometimes come into question when compared with a PBX system. Because VoIP relies on the company’s Internet connection, loss of power or connection means that phones will also be unavailable. In contrast, PBX systems are powered by the telephone wire itself and will still work even if the power is out. Some businesses are looking into an IP PBX system for this reason: The ease and cost of a VoIP system with a few PBX lines is ideal for emergencies.

Quality

The company’s Internet connection will also affect the quality of phone calls made over VoIP. Small companies with slow or low-capacity Internet will find that voice quality is lower than with PBX. Fortunately, there are many features in a VoIP system—such as the ability to access a work phone number no matter a person’s physical location—that will encourage businesses to upgrade to a more robust Internet connection.

IT professionals and business leaders should have a good understanding of the pros and cons of VoIP and PBX before deciding which one to purchase. While cost is lower for VoIP, PBX has the advantage in reliability and will still work even without power or an Internet connection. However, with the speed with which today’s digital world moves, businesses may find that VoIP allows them the mobility to keep up – with PBX lines as a backup.

One thought on “VoIP vs PBX: The Benefits and Disadvantages”

  1. Hi there, I have been working on a project in “VoIP services and Disadvantages of it”. Very interesting post. There are certain disadvantages mentioned here http://techandseo.com/2015/11/… that you can use to refer for further info.Thank you again for this amazing post.

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