What is IP-PBX: An in-depth Guide

Every business needs a suitable telecommunications service provider to manage all of its phone system tasks. If you have one such plan to set up a new business phone system, this article is for you. IP PBX is a telecommunications device that aids you in this process with enhanced features and privacy options. If you already own a Private Branch Exchange (PBX), it will be simple and worthwhile for you to migrate to a cloud-based trunking provider for PSTN. The entire technique involves a number of new problems that you might have to face with incoming calls, but the entire modification will be worthwhile.

What is IP PBX?

An IP PBX is a telecommunication device that benefits its users with voice connectivity options to and from desk phones that have been installed in a building. The task of an IP PBX is to monitor the outgoing and incoming calls across a telephone network by means of an internet connection. The name IP PBX is a combination of two terms :

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• IP – IP stands for Internet Protocol. This is a method of transmitting data from one initial server to another, followed by the establishment of calls via the internet.
• PBX – PBX stands for Private Branch Exchange. It can be understood as an internal telephone network that finds its existence on-premises and can also be hosted on the cloud securely. Thus, a PBX acts as the central switching system for phone calls within a business.

An IP PBX system manages all internal traffic that occurs between network stations and channelizes it to the outside world. The technology has undergone a number of improvements and has evolved significantly over the past century.

How does it work?

The IP PBX phone system essentially performs the task of converting analog voice signals into digital. From this point onwards, it directs calls to a VoIP service provider. The service provider manages the initiation and termination of every call. The IP-based voice service makes use of Session Initiation Protocol (SIP) for all its signals. SIP is a universal protocol that has become the standard for VoIP phone systems. SIP trunking via this protocol provides the benefit of multiple voice channels.

Let us discuss two parts of this technology :

• The inner side of a PBX remains unchanged. This is the part where users can call, check voicemails, set up call groups, and much more. This part mainly focuses on the design of the system.
• The outer side of a PBX is designated to the VoIP provider that assigns a set of credentials for SIP trunking accounts. Incoming calls are presented to your PBX for acceptance after the authentication process is over. It is also possible to reach out to an outside phone line via the SIP trunk.

On-premise IP PBX systems are phone systems where the hardware and components that power the phone system are kept at the location where it is being used. This technique provides more control as it is maintained by your business and the server ownership cuts down the cost of ownership. It also shows typical failover capabilities by SIP trunking.

On the other hand, a hosted IP PBX is a phone system where the actual hardware is hosted off-site. This system is similar to a cloud phone system. A hosted IP PBX benefits the users with low setup costs, enhanced software upgrades, and efficient selection of features via an online web interface.

Key Features of IP-based PBX

The following are some of the important features of IP-PBX :

• It provides efficient Voice and PSTN connectivity for the best calling features for all its users.
• All resources such as operating system updates, software updates, network configuration need proper maintenance.
• It provides better reliability by means of a single calling path.
• Since SIP is the current standard for all such systems, it is necessary to buy a phone system that supports it.
• PBX can transfer voicemail messages to your email as attachments.
• Mobility features such as Find Me / Follow Me give better allowance for users working away from their office buildings.
• Teleconferencing reduces travel costs. This can be achieved by multi-party conferences through systems.
• It securely allows call history reporting for efficient management.

Benefits of IP-PBX

Here are some reasons why an IP-PBX system can be worthwhile:

• It provides lower communication costs than analog predecessors. Nextiva also offers both metered and unmetered trunking services.
• Get cloud-based reliability with the support of multiple data-centers for a secure, dependable performance. In case of PBX failures, calls are routed to a different site.
• Hardware costs can be maintained low and productive by reusing the hardware already functional with your PBX.
• Few resources are required, including SIP address, password, and domain.
• The process of migration is simple, with minimal changes. You can upscale the number of voice channels with the least possible configuration changes.
• SIP trunks are location-agnostic, so office migrations will not be affected.

What are Limitations of IP PBX Systems?

Following are some drawbacks:

• Managing on-premises PBX requires a lot of technical skills. So, system administrators need to be well-updated with new installing techniques and configuration of Linux operating systems. Previous hands-on experience with FreePBX or Asterisk open-source software is an additional leverage.
• Most on-site PBX phone systems cannot support remote working. Remote working would enable maintaining system features from all environments irrespective of geographical hindrances.
• An IP PBX only ensures limited scalability and is susceptible to challenges along the way with the expansion of your team.
• Conventional office phone systems do not show adequate features such as video conferencing and instant messaging. Most businesses do not invest additional time and resources to configure these features into a system.

Final Take

We understand that it is the need of the hour to upgrade your Private Branch Exchange and give a superior communication experience to all your users. It is highly indispensable for businesses to make the right choice to implement the migration process smoothly. Shifting to a SIP trunking provider can be definitely a good option to make the best out of the services you have. We assist you in this task of maintaining better, upscaled services and cloud reliability coupled with minimum expenditure. Our cloud PBX seamlessly streamlines your communication services and grants superior team management. Our customer support is open 24/7 with the latest technological tools to upscale your business and help your team reach its goals. Check out our website for more.