VoIP PBX is a business telephone system that utilizes VoIP technology. It differs from a traditional PBX system in that it transmits phone calls via IP networks rather than through circuit-switched telephone networks. VoIP PBX systems can be either on-premises or hosted (cloud-based).

PBX (Private Branch Exchange) is a business phone system that is connected to a local PSTN through landline and allows employees to connect internally and externally. VoIP (Voice over Internet Protocol) uses an Internet connection to make calls and is considered more flexible, scalable, and cost-efficient than a traditional PBX system.

A traditional PBX system utilizes landlines wired by the telephone company. It is therefore compatible with landline phones only. However, a VoIP-enabled PBX system uses digital signals instead of analog ones and it’s usually compatible with a variety of SIP phones and softphones.

Traditional analog PBX phone systems use copper-based landlines and hardware that is physically located in a company’s telecom closet or a server room. The PBX hardware is set up, configured, and maintained in-house. With hosted PBX systems that run using an Internet connection, the PBX hardware is located off-site and managed by the company housing the hardware.

VoIP phone systems do not require PBX to operate. You would only need a high-speed broadband internet network connection and a VoIP phone to get started. A typical VoIP provider can offer a range of PBX capabilities without needing to have in-house PBX hardware.

The IP PBX phone system works over the internet instead of using traditional phone lines. The system operates by converting analog voice signals into digital packets and directing them to a VoIP service provider to coordinate the initiation and termination of calls.

PABX (Private Automatic Branch Exchange) has become the evolution of traditional PBX systems that required switchboard operators to manually connect calls between extensions. PABX automated the whole process when the electronic switching technology was adopted.

A PBX number helps companies organize their incoming calls by collecting all inbound calls to one number and transferring them to the right people or departments. A PBX number can be configured to transfer a call to another number in case the first number is busy or not answered.