PBX to VoIP: What are the differences?

What is the difference between PBX and VoIP?

The difference between PBX and VoIP is that a PBX system relies on an on-premise phone system that uses hardware and telephone lines to work correctly, whereas a VoIP phone system relies on an internet connection as everything is hosted on the cloud.

The main difference between a PBX system and a VoIP system is that a PBX system relies on a on-premise phone system that uses hardware including phone lines. A VoIP system can only be used through the cloud and only require an internet connection to be used.

What is a PBX system?

A PBX system is a telephone system within an organisation that can switch calls between users on local lines, while allowing all users to share a number of external phone lines. They're similar to multi-line systems; the main difference is that the former's call handling features are automatic.

Benefits of PBX systems:

• They have multiple lines and handsets
• They're great for small businesses
• Connect to the internet for more features
• They eliminate the need for someone to answer a central phone
• They save businesses money as they don't require each user have a line to the company's central office

What is a VoIP system?

Voice over Internet Protocol (VoIP) systems are cloud-based phone systems that use the internet to send and receive calls. Voice signals are translated into packets, which are then sent via the internet. Once the packets reach their destination, they're converted back to voice messages. VoIP systems can either be set up on-premise or hosted remotely on the cloud - for this reason, they're also referred to as cloud-based phone systems.

You can use the Virtual Landline app to transform your mobile into a VoIP phone. Learn more about how to get the most out of the Virtual Landline app, and compare VoIP apps vs VoIP desk phones.

Benefits of VoIP:

• VoIP can save your business money
• Multiple lines and handsets
• Most up-to-date technology
• Great for all businesses
• They're cheap
• They improve accessibility
• They're easy to scale
• Get advanced call handling features
• Better voice quality
• Multitasking features
• They're secure

VoIP Numbers

VoIP numbers are numbers that aren't tied to a specific device or location. Businesses use virtual numbers for a variety of reasons: freephone numbers and national numbers give the appearance that a company has a national presence, local numbers imply that a business has offices in a specific area, and memorable numbers make customers and potential customers more likely to remember a company. Whatever the method, virtual numbers help businesses increase their volume of incoming calls, likely leading to an increase in conversions.

At Virtual Landline, we offer some of the most affordable virtual numbers in the UK, with a variety of fantastic tariffs to suit you. The ability to divert calls to a mobile or landline anywhere in the world means you can thrive in a dynamic marketplace, appealing to customers throughout the UK and expanding your business.

View our FAQs, learn more about how it works, and sign up for your virtual number today.

Why are business telephone systems important?

They improve customer service and experience

Phone systems for businesses make the customer journey more efficient, improving service and experience, so they're more likely to convert and return.

They allow you to be more flexible

Phone systems for your business can allow your employees to be more flexible - an essential quality in all dynamic working environments. They allow employees to easily make internal and external calls, redirect calls to mobile phones, use the same number for multiple devices and so much more. With VoIP systems, companies can access valuable customer insights, while relocating with cloud-based systems is easy.

They improve internal communication

From easily transferring calls to call conferencing, business phones improve your internal communication, so you're more efficient.

Boost conversions and ROI

A more productive, organised and efficient team is likely to increase sales, while improved customer service is sure to boost ROI.

What business phone system is best for you?

When choosing a Phone system for your business, you'll have to decide whether you want a PBX or a cloud-based VoIP system.

PBX On-premise systems

For years, on-premise phone systems were the only real option available, and involve connecting all phone extensions are linked to a phone network. Private branch exchange (PBX) is just another name for an on-premise system.

They usually involve a one-off upfront cost; however, it's possible you'll be able to agree a lease. Businesses who feel that they're not quite ready for the cloud opt for on-premise systems, as there is security in knowing that the phone system is visible and accessible.

VoIP Cloud-based systems

Also known as 'hosted phone systems', cloud-based systems connect all extensions to one another and the public phone network via the internet. This means that they don't require any hardware on the site other than the phones themselves. They're straightforward to set up, and involve monthly costs per user.

As a third option, it's possible to connect to VoIP services and access their features from an on-premises phone system. In this way, businesses can save money by making calls over the internet while still maintaining hardware on the premises.

Since cloud-based systems require little to no hardware, they can be cheaper than on-premise systems. They're more scalable than on-premise systems, and are easier to back up than multi-line and PBX phone systems.

Usability

With an on-premise system, you'll be able to get great features like voicemail, group calls, call transfer and more. The main issue comes when you want to upgrade or amend your system: you'll have to pay for these, and an engineer will need to come and physically upgrade your hardware.

You'll be able to get the same great features that are essential to an efficient business on cloud-based systems. The main difference between the two systems is related to upgrades. On cloud-based systems, upgrades are automatic, and you won't need an engineer to come out and change anything for you. Adding new users is simple, and maintenance and upgrades are included as part of your package.

Call quality

While call quality is often a concern for those considering a cloud-based phone system, it need not be: call quality is equal or better on cloud-based systems.

Price

Cloud-based systems can be cheaper than on-premise systems, although this is not always the case. For cloud-based systems, you'll need to pay a set-up cost, buy the handsets and pay a monthly fee for each user.

On-premise systems are usually more expensive initially, as you'll need to pay for the necessary hardware. You'll also need to pay for any upgrades or additions further down the line. However, leasing options are often available for on-site systems, meaning you'll be able to better spread the cost.

Choosing Virtual Landline for your business phone system

We offer a wealth of virtual phone numbers to suit your business, all at great prices. As part of our promise, we offer no contract plans and a range of other benefits, making the choice easy! Read more about why you should choose Virtual Landline, view our case studies for real-life success stories.

Sign up today to boost your incoming calls and increase ROI.

PBX to VoIP: Frequently Asked Questions

[What's the difference between PBX and VoIP?

The main difference between PBX and VoIP is that a PBX system will typically require a full-time IT specialist to manage the entire system. This includes the management of hardware, software and general upkeep. Meanwhile, VoIP works completely over the Internet, meaning the hardware and software are operated and maintained through a 3rd party.

Do you need a PBX system to have a VoIP?

No, you do not need a PBX system to use a VoIP. VoIP systems use the internet to send and receive information, so you do not need to own or maintain a PBX system when you make the switch to VoIP. Smart devices such as mobile phones, tablets and computers can all be used to make and receive calls with VoIP.