Why You Need to Invest in VoIP PBX System

As your business grows, the number of folks in your workforce is bound to increase, too. You are also likely to expand your operations to the global arena.

With more employees and business locations (both domestic and international), you'll need to invest in a robust communication system. One element of that integrated communication system is a business PBX phone system, which will enable your employees and customers to communicate more effectively.

Here's why you need to invest in a VoIP PBX system.

So, What is PBX?

PBX is an acronym that stands for Private Branch Exchange. It’s an enterprise phone system that enables you to communicate internally and externally using various communication channels, such as an integrated services digital network (ISDN) and voice over internet protocol (VoIP). There are two types of PBX systems: standard PBX and VoIP PBX.

What's the Difference Between Standard PBX and VoIP PBX?

The main difference between a standard PBX and VoIP PBX is how they link and integrate users. While a standard PBX system uses traditional phone lines for switching incoming and outgoing calls, a VoIP PBX uses the internet and IP phones to transfer voice data.

What is VoIP PBX?

According to Webopedia, VoIP PBX or IP PBX is simply a type of business phone system that works more or less like a standard PBX. One built-in benefit is that this system uses the company’s internet, local area networks (LAN) or wide area networks (WAN), rather than via the circuit-switched networks used by traditional phone systems to switch calls between VoIP on local lines or between IP and conventional phone users. A VoIP Private Branch Exchange (PBX) system can either be hardware-based or software-based.

How Does VoIP PBX Work?

A VoIP PBX system is comprised of an IP PBX server and a VoIP Gateway. The IP PBX server functions as a proxy server. First, VoIP clients (who can use either softphones or hardware-based phones) register with the IP PBX server. When VoIP users want to make a call, they ask the VoIP PBX to launch the connection. The Session Initiation Protocol-based VoIP PBX contains a directory of all phones/users and their corresponding VoIP address, enabling the system to switch an internal call or transmit an external call through a VoIP gateway.

What are the Benefits of a VoIP PBX?

With a standard PBX, you'll need distinct networks for voice and data communications. But, the IP PBX employs united data and voice networks. This ensures internet access, VoIP communication and traditional phone communications all utilize one line to connect with each user. This also delivers flexibility as your business grows and leads to long-term operation and maintenance cost reduction. In addition, just like a traditional PBX, a VoIP PBX is managed and controlled by your company.

Should You Own or Get Your VoIP PBX Hosted?

To enjoy the benefits of VoIP phone services, you can choose to purchase and install your own system or host it on the cloud. Choosing a virtual PBX such as 8x8 Hosted PBX is better than buying and managing your own PBX system. This is because of the following reasons:

  • Virtual VoIP eliminates the need to purchase, lease, as well as pay maintenance fees on a multifaceted PBX system at your company.
  • Hosted VoIP PBX can reduce your phone bill by half and save up to 90 percent of what it would have cost you to invest in a standard PBX system.
  • Hosted VoIP enables you to get all your communication solutions from one company. This includes your phones, calling features and your local and long distance calls.
  • With a hosted VoIP PBX system, it’s possible to put all your employees under a single phone system. All employees can share similar virtual PBX features. This enhances your people management capabilities.

The hosted VoIP PBX system allows for the addition or reduction of extensions and fax lines involvement some you seem it important to do so. This ensures that you only have extensions or fax lines that you need.


When it comes to VoIP, 8x8 provides a reliable and compliant cloud solution at a demanding level rarely seen by other cloud providers. Don't take your chances with a subpar cloud-based telecom system. Call 1-866-879-8647 or fill out our online form to request a no-obligation quote from an 8x8 product specialist.

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