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Technology is changing all of the time, and this is true for telephonic communications. Two of the newest developments and most frequently confused ones are VoIP and PBX. If you run a small office and are looking for alternate sources of phone service, either a VoIP or PBX phone system is your best choice. Both provide normal phone service with extra features for significantly less than a traditional phone system. To help you decide between a VoIP or PBX phone system, the descriptions will serve to highlight their differences:

Technology is changing all of the time, and this is true for telephonic communications. Two of the newest developments and most frequently confused ones are VoIP and PBX. If you run a small office and are looking for alternate sources of phone service, either a VoIP or PBX phone system is your best choice. Both provide normal phone service with extra features for significantly less than a traditional phone system. To help you decide between a VoIP or PBX phone system, the descriptions will serve to highlight their differences:

VoIP System
VoIP is short for Voice over Internet Protocol. It passes digitized voice data from one point to another over packet switched network. More conversations in the same amount of bandwidth allowed by VoIP is a major draw for telecommunications companies. Another huge advantage of VoIP services is how cheap long distance calls are. In addition, VoIP set-up differs from PBX set-up because the VoIP systems are set up by the users themselves, instead of being setup by the company like most PBX companies do.

PBX System
Public Branch Exchange is more commonly referred to PBX. Essentially, it routes incoming calls to the appropriate extension by means of a miniature telephone network and shares phone lines between each extension. PBX phone systems have many great customer service features that businesses find attractive; these include: automated greetings for callers dialing menus, connections to voicemail, teleconferencing and much more. In addition, it also cuts costs by eliminating the necessity for every person in the office to have their own phone line that remains unused most of the day.

Calls within the building are routed internally, while outside calls are routed to any available external lines. Several more perks of PBX phone systems is the fact that they can evenly distribute calls to a department among available employees, conference multiple incoming calls, and when on hold, play music for the customer. A PBX system in your small office can truly demonstrate that your company is professional and polished before you even answer the phone.

IP PBX System: The new addition to PBX technology
Perhaps the closest way to having your cake and eating it too, some PBX systems are being equipped to be able to take VoIP calls; this is referred to as IP PBX. Using VoIP in a PBX phone system can really optimize communication in your office by allowing users to utilize a single phone to dial outside numbers or make long-distance calls. A software program like an IP PBX system can tap into all of the benefits of being able to access the processing power of a computer and Windows. It keeps users mobile as well, which is extremely attractive. Calls can be made and received anywhere in the world for no extra cost because of the SIP protocol characteristics.