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Modern Office Communication Device Glossary – Know VoIP, IP, PBX Better


Businesses rely on a constant stream of communication to function smoothly and efficiently throughout the day and this communication is facilitated through various devices. In earlier days, the only option available to them was the telephone, which was basically a simple piece of wire flowing between poles, down into the office rooms and behind the walls into the handset on every desk in the workspace. However, the recent developments in the field of technology has led phone calls to be moved from basic telephone lines to cable, from satellite to Wi-Fi channels with increased capability and lots of better features. The main mode of communication among business owners at the moment is Voice Over Internet Protocol, commonly abbreviated as VoIP.

Modern Office Communication Device Glossary – Know VoIP, IP, PBX Better

Rise of Internet communication in offices

This new form of technology has gained a lot of popularity in the industry since it not only allows the user to save money but offers a smoother communication experience. The importance of the Internet in VoIP Service cannot be discounted. In every business, it is important to find ways to save money while at the same time projecting a professional and clean image that showcases how advanced they are and how updated they remain with modern technology. New telephone systems based on the Internet are permitting companies to achieve both these goals. However, in order to understand them properly, the user must familiarize themselves with some terms before they can purchase a telephone system.

Private Branch Exchange – PBX

PBX was developed in the 1960s and this hardware and hardwired system permitted multiple users in a single location to make calls to one another without exiting the internal network. It was possible to call another user by simply dialling the extension and this simplicity of the Private Branch Exchange was the cause of its popularity. PBX may be considered the starting point of various services which are now taken for granted by the user, such as voicemail that can be stored on the server of the system. PBX, however, retains the capability to connect users to outside lines as well through trunk lines that allowed more than a single user to transmit over a line. Even though the entire industry has switched over to digital voice, PBX remains a relevant term and many of the present phones still incorporate the PBX concept. Some of the newly installed phones in the offices, however, have a greater chance of connecting via the Internet. There is no end to old-fashioned PBX systems since technically they can last forever but not many companies willingly install them anymore.


VoIP has resulted in the shift to digital voice transmission and the system permits voice data to travel via the same pipe as the digital data accessed through web browsers and emails. In the last few decades, the increased bandwidth has accommodated larger amounts of data travelling through the Internet and has formed more opportunities for cost savings. VoIP provides a more scalable system where fast-growing businesses have the option of adding more users. Features that sometimes triggered additional charges via a traditional line are sometimes free through VoIP owing to open-source software. In VoIP, it is important to select a reputable provider of phone systems as voice data takes precedence over transmitted data.


IP PBX, also known as Internet Protocol PBX, is system that helps businesses connect internally via the data network and then connect externally either through a digital network or a regular public wired system. This system of communication is ideal for businesses with associates in different locations since they can all gain access to a network that treats them as a single unit. IP PBX does away with long-distance charges for intra-company and also saves in terms of administration.

Hosted PBX vs. self-owned PBX

The difference between hosted and self-owned PBX largely focuses on size. A hosted PBX system indicates that the voice of the user will be funnelled through a communications provider who owns and maintains the server that stores the voicemail, executes conference calling and various other telephone features for a host of clients. A hosted system also provides breakdown protection in Internet connections. As the business expands along with its capital technology budgets, it makes sense to make the shift to PBX systems.

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