weather.com
The world of telecom/VoIP terms is an overlapping muddle of "same exact same but different." PBX, IP PBX, hosted PBX: They're as comparable as their names suggest but distinct. The majority of people charged with discovering a brand-new company phone system aren't knowledgeable about these terms, let alone the specific differences that affect their buying choice.

And why would anyone stay up to date with telecom specs? Once you have a phone system in place, it's hopefully something you seldom believe deeply about again. The exception, of course, are the lucky market folks who dive into the mess to bring you tech-to-English translations like this OnSIP blog. So let's enter it.
nbcdfw.com
IP PBX

You may know the term PBX: private branch exchange. PBX systems are large and expensive, and conventional analog systems connect directly to PSTN copper lines. Modern PBX systems-and by "modern" here we indicate post-Internet-are IP PBX to manage digital traffic. Basically, IP PBX is where PBX fulfills VoIP abilities. IP PBX systems are still on-premises, so they're not the less pricey hosted PBX from a VoIP company like OnSIP.

Onsite PBX systems need a great deal of area and a dedicated IT team. For corporations, they can work well, however they're terrific for cash-strapped startups and SMBs that may not have the workplace for a telco-only server room, not to mention the budget plan for the needed IT folks.

VoIP Gateways: Bridging PSTN & VoIP

PSTN calls send voice signals along copper wiring. VoIP calls break voice signals down into little digital packages for travel throughout the Internet. In other words, the PSTN is analog, while VoIP is digital. A VoIP gateway is the piece of hardware that bridges the two systems by changing call traffic from analog to digital and vice versa. Without it, the signals would get stuck trying to switch from one to the other.

VoIP to VoIP calls resemble emails or instantaneous messages: They consist of information packages cruising through cyberspace. This is why VoIP to are almost always free. For VoIP to PSTN calls, the signals need a converter. Think about the VoIP gateway like your outlet converters when taking a trip internationally. Your electronic devices work fine-they simply require a translator for various voltages and outlet shapes.

Which Do You Choose?

At the start of this blog site, we mentioned that all of this tech is generally the very same however different. This is a fantastic method to sum it up, but it's not as practical when you actually need to choose one. Do you want IP PBX or a VoIP gateway? Cloud or on-premises? Add in SIP trunking questions and you'll feel you're back to square one.

This might assist clear some things up: All hosted PBX systems are VoIP, however not all VoIP is hosted PBX. An IP PBX system is more detailed to the legacy PBX systems, simply upgraded for IP compatibility. The system still lives onsite, with all of the associated costs, much of which are in advance. Hosted PBX, on the other hand, is managed by a service company, and consists of hardware, staff, and maintenance. All you require to do is have a decent Internet connection and VoIP phones.

If you're aiming to upgrade your existing PBX system, IP PBX may be the right move. Otherwise, hosted VoIP has all of the tools and quality you require for smooth company operations.