What is PBX?

What is the definition of PBX?

PBX is an internal phone system with unique extensions for staff members and/or departments. It allows a business to use a single line for any number of professionals or departments. Incoming calls are routed to specific extensions or departments, while outgoing calls make use of an available line.

PBX phone systems have several advantages. These systems are far less costly than having a unique line for every person in your company. With today’s definition of PBX and current technology, these systems are also rich in features and don’t require complex hardware or software.

What Does PBX Stand For?

The term “PBX” stands for “private branch exchange.” The idea is that each unique branch of a company or organization has its own private exchange for incoming and outgoing phone calls. It’s an intelligent and efficient method of handling calls when your business has many different phone users that customers and callers want to contact.

You can describe a PBX phone system in more complex technical detail, but a working definition of a PBX system simply tells us that this is a phone system for managing the calls coming into and going out of your business.

In the beginning, a private branch exchange represented the physical layout of your fixed phone lines and phones. Nowadays, your PBX goes beyond your brick-and-mortar walls and includes all of the phones — fixed, mobile and computer-based — that you use to conduct your business.

How Does a PBX Phone System Work?

Now that you know what PBX stands for and have a working definition of PBX systems, you may be curious how it all works. A PBX phone system works much in the way a switchboard operator worked at the inception of phone communications. An incoming call came in through one of several lines and was directed (manually, back then) to any number of other lines with the desired contact at the end.

Of course, in today’s modern world, we’ve moved past physical switchboard operators. Advanced computer software and programming now dispatches calls through a PBX switchboard quickly and efficiently, so there’s no wait for your callers. They can be put through to a fixed line, mobile phone, or web-based (VoIP or cloud) telephony system. Your callers get through to the right person every time, which is important for providing great customer service.

What Is a Traditional PBX System?

A traditional basic PBX system utilizes the Public Switch Telephone Network (PSTN) which uses copper wire to physically link calls. These analog systems were common years ago when companies would invest considerable amounts of money into their phone systems. The advantage of traditional PBX systems is that they were very stable and could be customized precisely how a company wanted them. They were set up to reflect exactly the type of phone system required.

That being the case, traditional PBX systems also had many disadvantages. They were complicated and required lots of hardware, which in turn required maintenance. They were expensive to set up and use. Most troubling of all, they required a lot of technical expertise or IT professionals when a company grew and needed to update their system.

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What Is a Hosted or Virtual PBX System?

Now that broadband internet has replaced copper wires, most PBX systems are IP PBX, or virtual systems. What is an IPBX or virtual system? It uses VoIP technology to place voice calls over the internet.

There are different types of virtual PBX systems. On-site systems use your internet connection or Local Area Network to offer a phone system. These phones may still require IT knowledge and investment in hardware. On the other hand, virtual or cloud-based PBX systems do not. These are more flexible systems which do not require technical investment and are highly flexible.

A hosted PBX system offers reliability — you’ll never miss an important call again.

What Is The Definition of a PABX System?

You may see the term “PABX” used, which refers to “private automatic branch exchange.” This term is synonymous with PBX today, since all branch exchanges are now automatic. In earlier days, PABX was used to distinguish between automatic and non-automatic private branch exchanges. Back then, you may have needed a receptionist or operator for a non-automatic system. Today, virtually all PABX and PBX systems are automatic and do not require a live operator, which makes the two systems synonymous.

Today’s business climate is all about mobility — smartphones, tablets, virtual office spaces, telecommuting, and more. Companies are doing business at multiple locations, during extended hours, and have employees and departments all over the country. This migration toward a flexible workplace calls for a reliable, seamless communication system that ensures you’ll never miss an important call.

With a Hosted IP PBX system, you purchase the phone system service from an external provider, like AccessDirect, who manages and maintains the software and programming for you. Phone calls are delivered over data networks; it’s easily scalable, and there is no need to change your current phone numbers.

New technologies offer several features with hosted PBX systems: Find Me/Follow Me, Auto Attendant, Call Routing, Voicemail to Email and Fax to Email are just some of the features that make a smaller business look big and compete more easily with larger organizations. Your clients will be able to reach you wherever you are, and you can conduct business as if you were seated in your office.

What’s the Difference Between Using Hosted VoIP or a PBX System?

Whether you use an “on premise” PBX phone system or a hosted cloud solution, you still need to transfer calls and reach your staff. Today, there are multiple options for small businesses to enhance productivity and deliver high tech voice and data features.

Let’s start with the definitions of PBX systems:

PBX Phone System: As mentioned previously, a PBX is a phone system within a company where all your extensions share a number of outside lines to make calls. Traditionally, that means you have a telephone trunk (multiple lines) and some way of transferring calls in and out, whether that’s a human operator or a computer.More recently developed is the VoIP PBX system, which uses the internet to transmit calls and can reduce the costs and maintenance of implementing traditional PBX systems.
Another option is the “Centrex,” which is a PBX where all call switching occurs at a local telephone office instead of on your company’s premises. In this case, the phone company owns and manages all the equipment and sells this service to you.
You may also wonder what IP PBX is if you have encountered the term. IP PBX, sometimes shortened to IPBX, refers to a private branch exchange capable of switching calls between users with VoIP while allowing users to share phone lines. In many cases, the systems can switch calls between traditional telephone users and VoIP users.
Hosted VoIP and PBX Telephone Service: VoIP stands for Voice over Internet Protocol. It’s a technology that allows phone calls to be made over the internet and converts analog signals to digital packets that can be quickly transmitted over computer networks.
Hosts, like AccessDirect, take care of providing and maintaining all the equipment, handle security, redundancy, the set-up, and call switching. If you need to tweak, add, or change anything, we handle it for you.

Is a PBX System Right for My Business?

Now that you understand the basic PABX definition and understand how a PBX system works, you may wonder if this type of system is right for you. If you are a small business or a rapidly-growing business of any size, you will want to consider PBX systems. For a small business, this system can help you control overhead costs, because it can mean you don’t have to hire a receptionist to answer calls or invest upfront in hardware and a complex system requiring an IT team.

In addition, now that you understand the basic private branch exchange definition and how it works, you know enough to use it. Using these systems is simple. You can add multiple departments even if you have a small team, so your company looks larger and more professional. You can also change your main greeting and the number of departments, so your system can adapt as your organization changes.

If you want a system that is rich in features, a PBX system may be right for you. AccessDirect has features which allow your clients to reach all your team members through our PBX switchboard, even if some of your employees work remotely or are in different parts of the country or world. A system from AccessDirect also lets you screen your calls so your important work is not interrupted. At the same time, you can use text notifications and other features to ensure you pick up important calls, no matter where you are.

The Bottom Line

Business basics are the same as always, but the ability to efficiently function in a mobile/virtual business environment has changed. Hosted PBX systems have made it easier and more cost-effective than ever to be a small business in today’s market. A hosted PBX system provides the following benefits to you and your business:

Reduced costs: There is no investment in equipment or any maintenance involved.
FindMe/FollowMe: Never miss an important call – the system finds you and rings your device, no matter where you are.
Make a good first impression: AccessDirect can record a customized greeting for you to ensure that your phones are always answered professionally.
Employee flexibility: Your staff can work from any location and never miss a beat.
Customer Service: Questions and concerns are handled with less “telephone tag,” since employees can receive calls from any device and location.
Grows with you: Your virtual phone system can expand whenever you’re ready, and the system scales as your company grows.
Local and toll-free numbers: You can keep your current phone number, and additional local phone numbers and toll-free numbers can be added to help strengthen your presence.
Easy to Use: Changes, support, and additions are handled by AccessDirect with personal attention to your business’ needs.
Setup is Quick and Easy: With no equipment to install, you’re up and running right away.
Feature-Rich: Many useful features are available, including fax to email, voicemail to email, call screening and more.

While online and email business is growing, there are still many customers who prefer to use the phone. Make sure you’re offering them a fast and easy way to contact your business with the help of a PBX system from AccessDirect. We’ll set it up according to your current specifications and can easily upgrade in the future as your business and telephone communication needs grow.

Get Started Today

We help you add and expand to your system when needed, provide professionally recorded greetings, offer 24-hour emergency technical support, and provide many advanced features. Our service requires no maintenance, no equipment to buy, and no additional staff.

Discover what a PBX phone system with advanced features can do for your productivity and flexibility without having to buy equipment or adding staff. Call 877-599-6500 or contact us for more information.