In this guide, we will cover everything you need to know about IP PBX systems, from the basics of what they mean, how they work, their benefits, how they compare to VoIP and whether they might be the right choice for your business.

IP PBX stands for Internet Protocol Private Branch Exchange. A traditional PBX phone system connects telephone extensions to the Public Switched Telephone Network (PSTN) to provide internal communications for a business. With the addition of IP (Internet Protocol), it means that calls can also be established using an internet connection. A Voice over Internet Protocol (VoIP) PBX phone system can therefore make and receive calls using the internet as well as maintaining analogue phones on premises.

An IP PBX system can exist in two forms: either as a physical hardware device or as a software platform. 

There are two main types of PBX system: analogue and cloud-based.

An analogue Private Branch Exchange (PBX) system or landline uses the public switched telephone network (PSTN) and connects inbound and outbound calls using copper phone lines which are going to be switched off by 2027.

A cloud PBX system converts analogue voice signals into digital. IP-based phone services use Session Initiation Protocol (SIP) trunking, which is the standard for VoIP phone systems and allows you to add new phone lines or modify your service as and when you need.

There are several reasons why a business might choose to switch to a digital IP PBX from a traditional physical system, including a greater number of features, ease of use and lower costs. Below we have summarised the top 5.

Carrying out your work and staying connected on the job will always take priority, but it’s also crucial that you can manage your system from wherever you are. With an IP PBX system, you can view, manage or edit your options, authorised users and any other aspect of the system from anywhere using an online portal.

By switching to an IP PBX system, you dramatically reduce the need for any physical hardware or infrastructure, lowering significant costs to the business as a result.

What’s more, even if your business has several locations, it can still be managed from a single, central resource online, eliminating unnecessary costs.

For the reasons already mentioned, using an IP PBX system over a physical system helps you scale for future growth and enhance productivity. Because you can add new users and features easily as your business grows, your phone system will always grow with you. As a bonus, you only ever pay for what you need, helping to limit unnecessary expenses.

Last but by no means least, with a digital IP PBX system you don’t need to worry about any unexpected shutdowns leaving you stuck in the mud. By using cloud-based systems that use multiple highly secure data centres, your phone system is completely resilient.

In the unlikely event that there is an issue with one system, your call is automatically and seamlessly switched to a back-up centre, so there is no disruption to your service.

Learn more about VoIP phone systems for business and how you can experience these benefits first-hand.