What are PBX Business Phone Systems?

Introduction

Communication is a crucial aspect of any business, and with a wider selection of PBX and other phone systems available today, even remote communication with your team at an affordable price is possible. But what are PBX Business Phone Systems? Which type of PBX should you choose? Is there a better and more efficient alternative to PBX available? Keep reading as we reveal to you the best phone system for your business. 

What is a PBX (Private Branch Exchange)?

A PBX or a Private Branch Exchange acts as a central server for a business telephone system. A PBX essentially does two things: it helps a business’s internal team to communicate with each other and also helps in managing external calls.  A PBX essentially manages all inbound and outbound calls to ensure all the business communication can go on smoothly and efficiently in a cost-effective manner. There are different types of PBX- the ones that use traditional phone lines, the ones that can make the calls happen over the internet or cloud, and so on. We have discussed them in detail in the guide below. But before we jump to that, you must understand how a PBX works exactly. 

How does PBX Business Phone Systems Work? 

So, how does a PBX work, you may wonder? Let’s assume there are 15 people working in your company, and all of these 15 people need to be able to communicate with each other. You would give 15 phones to these employees, but who can possibly remember or dial all those phone numbers? Here, the PBX system comes in. The PBX is connected to all these 15 phones, and each phone is assigned an extension number. This way, when you want to call your colleague, you simply need to dial their extension number; the PBX will then help in establishing the call, and when the interconnection is finished, you and your colleague can talk. This is how PBX helps in internal communication.

For external calls, you can connect your PBX with PSTN (public switched telephone network) through phone lines applied from the service provider. So when someone from your company makes an external call, the signal is first sent to the PBX; the PBX will send it out through phone lines to PSTN, which will then transmit the call to your clients, and vice versa.  

Types of PBX Business Phone Systems

1. Traditional PBX or PSTN

A traditional PBX is very basic telephony, and it connects to phone landlines through a dedicated hardwire such as a switching console. In this type of PBX system, all lines are wired and it creates a physical voice network. However, because of the high installation cost and limitations to the way businesses can communicate with their teams and customers, this kind of PBX system is becoming obsolete now. 

2. Virtual PBX 

Virtual PBX is not a complete phone system and is simply a part of a hosted system that basically acts like a call routing or automated answering service. The UCaas technology has advanced a lot, and it incorporates Virtual PBX as just one of the many functions within the software, so, Virtual PBX is not that helpful for small businesses. 

3. Hosted PBX or “Cloud Phone System”

A hosted PBX is also known as Cloud Phone System, or Virtual PBX because this phone system is hosted in the cloud. This kind of phone system reduces a lot of work since the hosted PBX provider takes care of the features and the software. Hosted PBX also definitely requires less physical in-office equipment, however, it’s not a completely cloud-based system, and there are definitely better options available. 

4. On-premises PBX systems 

This one is an in-house communication system that is used to cater to incoming and outgoing calls. An on-premises PBX system is more like an automatic version of the manual switchboard and has been in use for generations. However, for this PBX system, you require an on-site server along with manual wiring that connects each business phone. Because of this, the cost of On-premises PBX systems goes very high, up to $1000 per month plus occasional maintenance fees, and is thereby not the best choice for businesses. 

5. Hybrid PBX

A Hybrid PBX is a mix of On-premise and VoIP (voice over IP technology). A Hybrid PBX essentially uses SIP trunking technology to offer voice service for the PBX system of your company. The best part about using this phone system is that as your business grows, you can add more channels to it without any wiring. This is definitely a better option than the ones shared above, as it offers a PBX with low cost and scalability. Having said that, Hybrid PBX still requires On-premise PBX to function, server space, upfront setup, and IT maintenance costs, and may still not be the best communication option for your business. 

Key Features of PBX Business Phone Systems

Here are some of the key features that you may find in different kinds of PBX systems:

Call forwarding

The call forwarding feature redirects the caller to another number, which is often also known as call diverting. Using this essential feature, you can ensure that you never miss a call or sales opportunity. 

Auto attendant

Auto attendant is a cool feature that connects your callers to the right department or a person without needing assistance from an agent. This feature helps in increasing the first call resolution rate and in offering the best customer service.

Call monitoring

This feature is meant for the management team as it allows them to listen to live calls and give the support agents feedback on how they can improve customer communication and service. 

Call analytics

Call analytics feature allows you to get detailed calling reports with key metrics like total calls made, missed calls, average handle time, etc. Using this feature, you can analyze the gaps in the calling activity of your business and suggest changes for improvement. 

Call recording

This simple feature allows you to record calls so that you can use them later for quality purposes or to check anything important that you might have missed later. 

Call routing

Call routing is a great feature, and it puts calls in a queue automatically. For this, it uses a set of established criteria and rules to direct incoming calls to the appropriate person or department before the call is picked. 

Call screening

This feature helps in rejecting, accepting, or sending a call to voicemail with the help of a caller ID. Call screening is a great feature to reduce spam or unwanted phone calls.  

Virtual phone numbers

Virtual phone numbers allow you to connect with your customers from anywhere, anytime, as they can be accessed on any device, be it mobile phones, laptops, desktops, etc. 

Voicemail to text transcription

This feature gives you the summary of a voicemail by transcribing the call so that you can save time by not listening to the entire call. For businesses who need this feature, our guide on voicemail transcription software can help. 

Auto dialer

This feature dials phone numbers automatically for the person making the call. 

Conferencing

Using this feature, you can add two or more people to a phone call for better and quick communication. 

Team chats

Team chats feature allows company employees to communicate internally amongst themselves and access messages and inboxes in a single place. 

What is the Cost of Using PBX Business Phone Systems?

The cost of using a PBX depends on the type of PBX system you choose and the number of users you have. Typically, you can expect to pay anywhere from $500-$1000 per user for using an on-premise PBX system, plus additional ongoing maintenance fees. Hosted PBX charges a monthly fee instead, where you can expect to pay $20-$50 per month. Businesses should consider switching to VoIP business phone systems instead which cost way less and offer great value for money with its extensive features.

Here’s a quick video explaining what exactly is VoIP:

How to Choose the Right PBX System for Your Business?

When choosing a PBX system for your business, you should consider the following factors: 

Consider your current setup

The first step in choosing the right PBX system for your business is to consider your current setup. Since traditional PBX is obsolete, it leaves us with one less option. Think about whether you need an IP PBX system or an on-premise phone system. If you don’t have plans to expand then an on-premise phone system should do, but if you have expansion plans and want to accommodate remote workers, then a hybrid or cloud-based PBX system may be ideal. 

Call Volume

The next factor to consider when choosing a PBX system for business is perhaps your business call volume. If you need a phone system to simply communicate internally, or with your clients externally, then an on-premise system could be just fine. But if you run a call center or customer service center and receive high-volume calls, then a PBX system that can accommodate multiple extensions should be your choice.

Emitrr’s tip👉No matter what your call volume is, if you are seeking a no-brainer option that you can downsize or upsize as per your changing business needs, then you should consider switching to a VoIP phone system. 

Determine your budget

Implementing a PBX is a complex process, and it incurs high upfront costs. You’d have to figure out the right equipment or configure the PBX system with your existing equipment to be compatible. Not to mention, the monthly/per-user cost, installation cost, and maintenance cost can all dent your budget. 

Emitrr’s tip👉Even in terms of cost, VoIP is way cheaper, and its implementation can be much more seamless since it can be clubbed with your current IP equipment. Moreover, VoIP installation may not even need any professional help. Book a demo with Emitrr– the best VoIP software provider, and see how all this becomes painless.

Determine what features you need

The next thing that you should consider are the features that you absolutely need. For example, if you offer customer service then IVR or auto-attendant are must-have features. Similarly, features like call transfer, call forwarding and call queue may be useful for healthcare, home service, and other similar businesses. 

Maintenance & support 

Traditional PBX may require help from a professional in case of downtime. In the case of IP PBX phone systems, support, and service are taken care of by your vendor with your monthly subscription. Most vendors offer 24×7 support, so this shouldn’t be a problem. 

Analyze security of your PBX system

While on-premise PBX systems offer guaranteed security, IP PBX systems use the latest security measures, such as two-factor authentication and user-based roles, to ensure your data remains secure. 

Consider Flexibility 

IP PBX, Hybrid PBX, and VoIP have made it possible for businesses to communicate remotely. Because of the flexibility of IP PBX and VoIP, your employees can work from anywhere in the world and enjoy more flexibility. And so if this is an important factor for you, then choosing either of the options can be good. 

Consider scalability of your PBX system

Lastly, consider if your phone system is scalable and if it can be accommodated as per your growing business needs. This could mean having the ability to make international calling, the ability to add more users and extensions, or the ability to get access to more advanced features. Again, you may have to compromise with one or more of these if you choose a PBX system. If scalability is your future goal, then the best option is to go for a VoIP phone system. 

Reasons Why Businesses are Moving Away from PBX Business Phone Systems to VoIP

If you are currently using a PBX system and are facing issues with flexibility, connectivity, scalability, cost, etc., then it is time for you to switch to a VoIP phone system instead. Here are some solid reasons why businesses are moving towards VoIP instead of PBX. 

VoIP is more cost effective 

PBX business phone systems not only have high upfront costs and installation costs but there are many other things that make them an expensive choice. Want to add more new users or phone lines? Want to talk to your clients internationally? A VoIP phone system, such as Emitrr can let you do all this without incurring any additional costs. With a unified solution such as Emitrr, you get calling features, such as recording, analytics, call transferring, voicemail-to-text, etc., along with more collaboration tools such as SMS texting, that too in one simple monthly invoice. 

VoIP offers more insights with real time data

This feature is more suitable for businesses that offer customer service or call centers. Being able to access information such as total calls, average handling time, missed calls, etc., in real-time can allow you to see how long your customers are kept on hold and if they are getting their issues resolved or not, ensuring better customer service. With VoIP software, pulling this information takes only a few seconds. However, in a PBX system, getting access to this information is complex; it requires you to get the data you need requested from the provider, which is not only time-consuming but also inconvenient. 

Work remotely from anywhere with VoIP

With a VoIP or a UCaas platform, you can communicate from anywhere in the world as long as you have an internet connection. There is absolutely no need to ship out phones or the need to buy hardware or equipment. To access your VoIP phone system remotely, all you need to do is download your VoIP service provider’s app or install the software on your laptop or computer, and you are good to go. 

VoIP integrates with other tools

Finding integrations for all the tools you currently use might be a challenge with a PBX phone system. However, unlike PBX, VoIP can be integrated with your existing CRM/EHR/PMS tools seamlessly. When looking for the best VoIP software for your business, you can check their integration gallery which will show you all the tools the VoIP software can sync with.

VoIP makes it easy to scale and expand

If you plan to scale your business, especially in other countries, then VoIP comes with the advantage of scalability while still being cost-effective. Whether you want to add or remove more lines or users or want to be able to communicate with your customers overseas, VoIP can easily accommodate your growing business needs. 

VoIP comes with more advanced features 

Your PBX may or may not offer advanced calling features, but VoIP can do so much more. Be it AI integration, getting call summaries in a click, creating a custom IVR menu, easily porting your existing business number, sending files such as images, documents, links, etc. There are in fact, omni-channel communication software, such as Emitrr, that not only offers VoIP but also SMS texting capabilities and can help simplify your communication across all channels. 

PBX VS VOIP Phone Systems 

We have said it plenty of times, and we will say it again, that VoIP is 1000 times better than a PBX for your business. See this quick comparison and decide for yourself: 

For a more detailed understanding on the difference between the two, check out our latest guide on PBX vs VoIP.

Why Emitrr is the Best VoIP Phone System?

If you understand how cost-effective, hassle-free, and effective switching to a VoIP system can be for you, then Emitrr is the best VoIP software for the same. Here’s why:

Affordable pricing, no hidden charges

Emitrr offers a 100% transparent and simple billing system and is one of the most affordable VoIP phone systems in the market. Emitrr does not charge anything extra beyond the package cost. In fact, the initial set-up and onboarding are entirely free without any hidden fees.

Additional features

Emitrr isn’t just your ordinary VoIP platform. It’s a comprehensive solution offering a wide array of features, including VoIP, SMS, online scheduling, automated texting, feedback, surveys, reminders, reviews, etc. Emitrr delivers everything you need for complete and exceptional customer communication and experience. 

1000+ CRM integrations

You can effortlessly streamline your business workflow by integrating your existing system or software with Emitrr. Emitrr offers smooth integration with 1000+ CRM/EMR/EHR/PMS systems such as HubSpot, Mailchimp, Salesforce, AthenaHealth, HousecallPro, etc. 

Emitrr flawlessly syncs with your existing CRM/EMR/EHR/PMS, automating repetitive tasks and supercharging your operational efficiency.

Unparalleled 24/7 customer support

Emitrr takes great pride in offering unparalleled customer support. Quick responses and effective query resolution set Emitrr apart from many popular VoIP software providers. Emitrr ensures timely attention to every customer and strives to offer a seamless experience. In fact, Emitrr has been rated solid 5/5 stars by users on Capterra for its customer service. 

Emitrr’s Chrome Extension

Emitrr’s Chrome extension lets you send a text message to your customer directly from anywhere you spot a number; no need to switch back to your texting platform. After installing Emitrr’s Chrome extension, you simply need to click the Emitrr logo on the number and start texting instantly.

All-in-one Platform

Emitrr brings all your team, calendar, conversations, reviews, and emails under one roof. No more hopping between platforms! With Emitrr, everything is just a click away and everything can be accessed on a single screen, freeing you to concentrate on other vital business tasks.

In-chat Features

In addition to these, Emitrr also offers a host of features within the chat, streamlining your conversation management. Some of the features include:

• Assigning a conversation to a team member
• Marking a conversation as read or unread
• Adding notes to the conversation for reference
• Indicating if the conversation is open or close
• Setting a disposition to track progress
• Organizing conversations into folders
• Printing the conversation for your records.
• Blocking contacts when needed

How To Use Emitrr’s VoIP Features?

Here are a few VoIP features that Emitrr offers, and simple steps on how to use them: 

1. Track Your Calling Activity

• STEP 1: Go to the “Call” option on the left side of Emitr’s dashboard. 
• STEP 2: Click on the “My Performance” Option.

Here you will be able to track all your calling activity such as missed calls, number of total calls, answered calls, and a lot more.

2. Turn Voicemails into Text

Here’s a quick video showing how this amazing feature works:

3. Easily Import Contacts with a Few Clicks

• STEP 1: Go to the “Contact” option on the left side of Emitr’s dashboard.
• STEP 2: Select the “All Contact option”
• STEP 3: Click on the “Menu” option appearing on the right and then click on the “Import Contact” option

4. Manage Users and Extensions with Ease

• STEP 1: Go to the “Settings” on the left side of Emitrr’s dashboard. 
• STEP 2: Select “Phone Settings”
• STEP 3: Click on the “ Users and Extensions” option

5. Manage Incoming Calls 

• STEP 1: Go to the “Settings” option appearing on the left side of Emitrr’s dashboard. 
• STEP 2: Select the “Phone Settings”
• STEP 3: Select the “General Setting” option

You will get all the options to manage the calls as per your needs and preferences. 

6. Make Direct Calls Instantly

• STEP-1: Click on the “Call” option that you see on the top right section. 
• STEP-2: A dial pad will be displayed to you

You can easily make a call in a few clicks

Conclusion

There are many kinds of PBX phone systems, including On-premise PBX, Virtual PBX, Hosted PBX, etc. However, they are all either unscalable, expensive, inefficient, and so on. To get the best out of your phone system and to enjoy the best features, scalability, cost, etc., you should switch to a VoIP phone system instead. Book a demo call with Emitrr today and see how our VoIP phone system can simplify your business communication with minimal effort. 

Frequently Asked Questions