PBX phone systems use both hardware and software to connect devices such as routers, phones, adapters, and servers. The term comes from the days of manual telephone exchanges and patch cords, but technology has evolved greatly over time.

Modern systems such as IP-PBX and VoIP-PBX offer more cost-effective and feature-rich solutions that increase productivity, such as call recording and voicemail-to-email capabilities.

If you’re looking to upgrade your traditional phone lines to a PBX, this guide will walk you through 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 an on-premises PBX, a hosted PBX, or a hybrid PBX.

Let’s take a closer look at each point:

On-site telephone system

Also known as a legacy PBX or traditional PBX, this is a hardware-based system that is installed in your office and connects to the public switched telephone network (PSTN) using primary rate interface (PRI) phone lines. Typically, the initial cost is significant and ongoing maintenance is required.

Hosted PBX

Hosted PBX, commonly referred to as cloud PBX or virtual PBX, is a cloud-based phone system that manages your business’s calls and communication services. Instead of physical hardware on-site, your phone system is managed by a third-party provider in their data centers.

This gives you access to advanced phone features like voicemail, call forwarding, and conference calling without the need for complex and expensive equipment in your office. Hosted PBX systems are scalable and typically more cost-effective for small and medium-sized businesses.

Hybrid telephone system

A hybrid PBX combines a traditional office phone system with internet-based features. You can keep your regular office phones and use online tools for additional features and remote work options. A hybrid PBX is especially helpful for businesses looking to move to a hosted system.

2. Hosted PBX is easier to manage

Hosted PBX is a true plug-and-play system thanks to the power of VoIP (Voice over Internet Protocol). Instead of dealing with the challenges of an on-premises system, you can enjoy the convenience of a cloud solution.

All you need to do is register an account and sign up for a plan with a provider, much like any other online service you use. You can also easily scale your plan up or down based on business growth or seasonal peaks. And when new features or functionality become available, accessing them is as easy as running a software update.

In contrast, getting an on-site PBX up and running requires a lot of work, from initial installation and configuration to ongoing maintenance. If you don’t have your own on-site IT staff, you may need to hire an outside technician to perform maintenance. This can lead to potential downtime or disruption to your service and put a strain on your budget.

3. You can add VoIP to the analog telephone system

If you want to integrate VoIP functions into a traditional analog telephone system, you can use a SIP (Session Initiation Protocol) gateway.

Essentially, SIP supports communication over the Internet. It enables the transmission of voice and multimedia data, making it the backbone of VoIP services. It is also used to establish, modify and terminate real-time sessions, such as voice calls over IP networks.

When someone makes a call using the traditional analog phone system, a SIP gateway converts the analog signal into digital packets. These digital packets are then forwarded over the Internet to their destination, be it another VoIP phone, a mobile device, or even a traditional landline.

VoIP offers many benefits to businesses, including:

• Access to new features: The best VoIP phone services offer advanced features that may not be available with traditional analog phone systems. These include features such as video conferencing, call recording, call forwarding, call routing, and voicemail to email transcription.
• Scalability: These systems are highly scalable, allowing companies to add new lines or extensions as needed without being limited by physical cabling.
• Cost savings: VoIP is often cheaper, especially for long-distance and international calls.
• Compatibility with remote work: Employees can easily connect to the company’s phone system from any location with Internet access, making it well suited for telecommuting.

4. VoIP phone system offers real-time call analytics

Real-time call data can provide insight into important aspects of your operations, such as call volume and customer wait times, which directly impact customer satisfaction.

Gathering this type of information can be challenging—if not impossible—with traditional PBX systems. But with VoIP PBX phone systems, the data is always at your fingertips.

Your VoIP account gives you instant access to a wealth of call analytics and insights powered by 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.

These insights help your business remain flexible and responsive, ultimately improving the overall customer experience.

5. Cloud PBX can save you money

Cloud PBX systems are less expensive than traditional options for many reasons, but the biggest advantage is that you don’t need to buy a lot of equipment to implement them. With a cloud-based PBX phone system, you can use the equipment 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 customers and clients, cloud PBX is a budget-friendly option.

This is because VoIP providers allow you to adjust bandwidth and customize your features without requiring any changes to the physical infrastructure in your office. You can add new users and remove users at any time, directly from your online account.

In addition, cloud-based collaboration solutions are often the most cost-effective per month.

When you’re looking for a PBX provider, you need to consider the additional costs you may be paying for other software you already 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.

Migrating to a unified solution allows you to access a variety of communication channels and collaboration tools within the same platform. This simplifies operations for call agents, consolidates costs into one monthly bill, and saves money by moving away from expensive, point-in-time software products.

6. Hosted PBX connects to other software

Switching to new communication tools can seem daunting, especially if your team already has established systems in place. The good news is that a hosted PBX service offers integrations with the most popular third-party apps. These connections streamline your team’s workflow and minimize manual data entry, saving time and effort.

Nextiva, for example, offers an app marketplace that connects to the most popular sales and marketing apps like Zoho and Salesforce. When integrated, these platforms pull relevant contact information, making it easier for users to access customer information during calls or support interactions.

7. The right telephone system is crucial for operational reasons

Now that you know all about the different PBX systems and their features, the question is which one you should invest in. The answer depends on how your business and teams work.

If you use landlines exclusively for local calls or have already spent a lot of money on your existing infrastructure, a traditional solution may be the best option.

However, if your team needs to make calls nationwide or internationally, work remotely, or access call tracking features, you’ll need a hosted PBX 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 telephone system is only useful if it works. It is important to choose a service that is online most of the time. Look for a provider that promises 99.999% uptime or more.
• flexibility: Modern 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 how you make and receive calls.
• Support: If there’s something wrong with your phone system, you want a team you can trust to help you.
• Cost: When choosing a service, make sure it fits your budget. Look for a provider whose plans you can afford and ask about discounts if you pay annually.
• Security: To ensure the security of your phone system, look for a provider with 24/7 monitoring and special certifications such as SOC 2 or ISO/IEC 27001 that meet certain security standards. You should also consider features such as call encryption to maintain the privacy of your calls.

The right PBX solution can unlock important areas of your business. It enables remote work, helps you attract more customers, and provides a better experience, making it a valuable asset to your company.