A PBX, or Private Branch Exchange, is a telephone system used by businesses and organizations to manage incoming and outgoing calls. It typically consists of a central switch that connects to the public telephone network, as well as to the individual telephones within the organization.

The PBX acts as a switchboard, routing calls to the appropriate extension and allowing employees to communicate with one another internally. It also allows for features such as voicemail, call forwarding, and conference calling.

One of the main advantages of a PBX is that it allows an organization to have a single telephone number, even if it has multiple locations or a large number of employees. This simplifies communication for customers and clients, who can simply dial the same number to reach any employee within the organization.

Does my business need a PBX?

PBX systems can be either on-premises, where the hardware and software are physically located at the organization's premises, or cloud-based, where the PBX is hosted by a third-party provider. It’s a very good idea to utilize the benefits of PBX for your business as it will give callers a professional experience when communicating with your agents.

However, most modern cloud phone systems will include PBX functionality within their platform and so the question of whether your business needs one or not becomes slightly redundant. When considering a new phone system, double check that PBX functionality is included.

Overall, a PBX is a valuable tool for businesses and organizations looking to improve their communication and collaboration. It offers a range of features and can save time and money by streamlining the management of incoming and outgoing calls.

Difference between PBX and VoIP

PBX and VoIP are two technologies that are commonly used in business telephone systems. 

VoIP, or Voice over Internet Protocol, is a technology that allows for the transmission of voice communications over the internet. This allows users to make and receive phone calls using an internet connection, rather than a traditional phone line.

One key difference between PBX and VoIP is the way that calls are transmitted. With PBX, calls are typically routed through the organization's on-premises telephone system, using traditional copper wire or fiber optic cables. With VoIP, calls are transmitted over the internet, using data packets.