There are a number of different business phone system options available to choose from. The main aim of a business phone system is to provide employees the ability to communicate between themselves and with customers in the best possible way. This can be as simple as providing extension numbers for each employee or providing additional functionalities such as video conferencing, computer integration and mobile integration. Often phone system providers use terminology such as PBX, IP, VoIP and Cloud, this can make it confusing and difficult to work out exactly what you are getting when comparing systems. In this article we take a look at the main types of business phone systems, how each of these works, and explain the terminology that goes along with them.
Traditional business phone system – On Premise PBX
On Premise PBX phone systems are the original systems that are now considered outdated. The primary function of this business phone system is to direct incoming calls to the right extension number. There can also be other options on these phone systems, including multiple voicemails, call forwarding and call groups. Beyond this there are not many other functions of an On Premise PBX system.
These systems are robust and simple and are still used today in some offices. Before flexible working and the addition of new technology became available, they were the main type of phone system, around for over 20 years. They are best suited to offices with less than 50 employees who work from desk phones and do not require any flexibility.
This type of system works using a PBX (private branch exchange) box that sits within the business premises. This box receives all incoming calls and uses wires to connect to each individual desk phone. The use of wired desk phones has become outdated and expensive to implement. The PBX box itself delivers voice calls using ISDN (Integrated Services Digital Network). This network was introduced to provide digital transmission of data and voice over ordinary phones. The ISDN network is due to be switched off in 2027, so businesses with this type of phone system will need to upgrade before this date.
Here are the main benefits and drawbacks of an On Premise PBX phone system:
Benefits:
- Robust
- Simple
Drawbacks:
- Limited flexibility
- Limited technology
- Use of wires
- Outdated – due to be switched off in 2027
- Downtime can be an issue
VoIP PBX
VoIP PBX is very similar to the On Premise PBX systems in terms of the functionality and options on offer. The main difference is the way the connection is delivered to the business phones. VoIP PBX uses an internet connection for incoming and outgoing calls. VoIP stands for Voice over Internet Protocol, these systems are also often called IP phone systems.
There are some additional benefits to using the internet for creating the connection and delivering the voice calls and data these include:
- Higher quality voice calls
- One system can be used for a business with multiple sites
- In 2027 ISDN (the connection that On Premise PBX systems use) will be switched off. VoIP PBX does not use ISDN so will be available after this date
Cloud based phone systems
A cloud based phone system is the next generation of business phone systems. Cloud phone systems remove the need for any on premise PBX box or static desk phones. Cloud phone systems work by providing all of your phone system functionalities through the internet. All of the information and data you need is hosted on the cloud and accessible through any device with an internet connection. Employees can use their own mobile phones to access their assigned business number, or this can be done through a desktop browser or app.
Cloud based phone systems are often referred to as hosted VoIP, these are the same phone systems but named differently.
The key benefits of a cloud based phone system include
- Scalability
- Value for money
- High quality calls
- Lower maintenance and installation costs
- The most up to date functions and tech the provider has on offer
- Flexibility to work from anywhere and everywhere.
Functionalities you can expect from a cloud based phone system include:
- Instant messaging
- Virtual receptionist
- Video conferencing
- Mobile integration
- And much more
Find out more about the business phone systems we have available, including our cloud phone systems.