What is IP PBX, Its Functions & Advantages to Businesses

What is IP PBX?

An IP PBX is a private branch exchange that switches calls between VoIP users or traditional telephone users or between a VoIP user and a traditional telephone user on local lines while allowing all users to share a certain number of external phone lines. It works in the same way as that of a conventional PBX. It is abbreviated as IP PBX, IP-PBX, IPPBX, or IP/PBX.

How it functions?

An IP PBX phone system consists of Softphones or IP phones, IP PBX server, and an optional VoIP Gateway. IP PBX server is similar to proxy server. Whenever softphones or hardware based phones that are registered with IP PBX server wish to make calls they make a request to IP PBX to establish the connection. The IP PBX which has the directory of all phones/users and their corresponding SIP address will process the request and connects the call via either a VoIP gateway or a VoIP Service Provider to the desired destination.

Advantages of IP PBX to Businesses:

  1. Uses LAN connection: IP PBX phone system resides on the network using existing LAN connection. The signaling distance and time (latency) is very short as the PBX server is located only a short distance away and does not depend on travelling over the internet and other networks.
  2. Easy to configure and install: Unlike traditional telephone systems which are complicated and hard to configure and install, IP PBX phone systems are relatively easy to configure and install.
  3. Effective management: The GUI of an IP PBX is very user-friendly than traditional PBXs allowing providers to have effective management over their business.
  4. Lower operational costs: Businesses can benefit hugely by owning an IP PBX Software as it can considerably bring down the operational costs.
  5. Easy phone movement: As phones are IP based, their movement becomes very easy and is up running once connected back to the PBX server. Earlier, phone movement was believed to be a cumbersome experience.
  6. Operate more offices: Businesses can add and operate more offices with the help of IP PBX phone system.
  7. Unified messaging: All latest messaging features could be availed by integration of other messaging applications with IP PBX.
  8. Remote extensions: Businesses can add any number of IP phones remotely by connecting to the internet and forming extensions.
  9. Cost savings by connecting to VoIP providers via SIP truncking: Using SIP trunking with an in-house IP-PBX can connect to lower cost VoIP providers thereby reducing phone bills especially long distance and international calls.
  10. Complex Scenarios: IP PBXs with Call Flow Editor allows businesses to deal with the most complex scenarios.

Thus, IP PBX phone systems are cost-effective, productive, scalable and reliable as compared to traditional telephone systems.

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