PBX vs VoIP Phone Systems

pbx vs voip phone systems business telephones

The quality of voice communication is a critical part of any business's success. Nonetheless, selecting the right phone system for your business can be daunting, especially with the many available telephone choices. 

It is up to you to understand the available phone system choices out there. Check the features and pros and cons of each before selecting the best telephone systems option that will meet your needs. 

The analog phone system was the dominant solution some years back, but today, most business owners make their decisions from two common choices: PBX vs VoIP. 

Are you looking to upgrade your business phone system? Here are the differences between Private Branch Exchange (PBX) and the multimedia-savvy Voice over Internet Protocol (VoIP) phone systems to help you make a sound decision. 


VOIP phone systems depend on the internet for packaging voice signals into data. The data is then transferred over the internet. When the customer care providers communicate with customers, the voice signals pass through your network before being transmitted through the internet. 

PBX, on the other hand, is an analog system that entails line-to-line connections for voice exchange. When the customer care providers make or receive a phone call with hosted PBX, the voice signals are transmitted directly through an exchange network. 

System Connections 

The main difference between VoIP and PBX phone systems is in connection complexity. 

VOIP is less complicated compared to PBX because it uses the internet to transfer voice data. All you need is a computer or phone and an internet connection, and you are good to go with your business telephones. 

Nonetheless, PBX systems use multi line office phones to connect incoming and outgoing calls. The setup is a bit complex, as it involves a computer server, multiple lines, and a manual control board to connect to the public system seamlessly. 


Before settling on a particular phone system, you should consider the running costs. Choose a plan that fits your budget without harming your business capital. 

VoIP providers offer a subscription model whereby you pay a monthly fee per user. The subscription model is ideal for small businesses or those working on a tight budget. 

The cost of PBX systems depends on your preferred set up. The expenses include license, update and maintenance, service fees, and the phone bill. 

Combining all these expenses will realize that PBX is way more expensive than VoIP, but it is the best choice for large businesses. 


The other crucial aspect when selecting a business phone system for your business is flexibility. 

For high flexibility with telecommunications, you should consider a VoIP phone system. The system allows you to add users and adjust the capacity to meet your business needs as your business grows. 

PBX system's configuration offers limited flexibility for telephone systems. It features predetermined analog phone lines, so you cannot increase and reduce the number of users per your needs. You will have to buy more capacity from the telephone provider. However, with a cloud PBX communication solution, there is more room for flexibility. A cloud PBX combines business phones, video conferencing, texting, and collaboration.

PBX vs VoIP: Which Is the Best for Your Business? 

The best phone system between PBX vs VoIP depends on your precise business needs. 

Consider the running cost, dependability, and flexibility of a business phone system before making the final decision. You should also seek the advice of a telecommunications specialist to recommend the best solution for your organization. 

Keep checking our blogs for more telecom and company communications tips. We publish a wide variety of helpful articles on phone systems, VoIP, teleconferencing, smartphones, video conferences software, and top telecom trends.

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