IP Phone Vs Regular Phone System

Traditional PBX phone equipment were designed for PSTN (Public Switched Telephone Network) Originally the network of the worlds public circuit-switched telephone networks, of fixed-line analog telephone systems, even though the PSTN is now almost entirely digital but it still runs on a fixed line concept (where every phone conversation is using a physical line from point a to point b). therefore it cannot support any open standards used for VoIP (Voice over IP) like SIP (Session Initiation Protocol), which is designed to be independent of the underlying transport layers (where every phone conversation is using a very intelligently over the internet connection), it is widely used for controlling multimedia communication sessions such as voice and video calls / conferences over Internet Protocol (IP) and IP PBX Solutions.

99% if not 100% of all medium-sized and larger companies are using a PBX because it is less expensive than connecting an external telephone line to every telephone in the organization. In addition, it is easier to call someone within a PBX because the number you need to dial is typically just 3 or 4 digits.

There are many serious considerations for any organization moving away from its existing phone system, likely to be based on the regular phone network and an expensive Centryx system to a new system based around IP telephony. A key decision is the right PBX system to choose and how to integrate that into existing organization IT and business practices while still planning for the future.

Hosted PBX is generally built to give any mid-sized business a total IP PBX solution for multichannel communications, business processes, contact center operations, and optimum performance from your employees, all to offer superior service for your customers.

Aside of the obvious that it was designed and programmed for PSTN, (and it does not support the protocols the phone conversation is carried over) and that the inside wiring of Traditional PBX’s uses RJ2 wire vs IP-PBX are using CAT5 wire, there are much more differences with the Traditional PBX’s vs Hosted IP-PBX, I will just name a few:

• Traditional PBX the concept of internal calls /phones are limited to calls that are on your physical internal network, ie. the same office or connected with a highly expensive point to point T1, vs Hosted IP-PBX any phone assigned to your account is considered a internal call / phone no meter of its location.
• Traditional PBX the initial investment of PBX equipment is expensive due to high equipment and installation costs, its licensing fees and minimum charges, aside of the high maintenance cost, vs Hosted IP-PBX with a low monthly fee (probably lower than your current monthly phone bill) you could have a full blown PBX with phone service
• Traditional PBX any change needed to your PBX system even as little as a change in schedule or adding a holiday greeting will requires an on-site visit of tech support usually charging by the hour, vs Hosted IP-PBX usually with a user friendly web based portal any change could be easily done by yourself, and some companies even have a Customer Support team available for any phone support to help with with any changes or modifications you might need, either walking you trough over the phone or even doing it for you for no extra charge.
• Traditional PBX are limited to today (if not yesterdays) technology and its features are limited to what technology is aware today, vs Hosted IP-PBX development teams are always competing to stay ahead with all new features and gadgets possible.