Business Phone Systems: PBX, IP and Everything In-between

Most businesses have a phone system these days and words like ‘PBX’ and ‘IP Telephony’ are often bandied around as an ingrained part of business conversation, yet what exactly is a phone system? How does an IP PBX differ from a PBX? And how can a phone system benefit your business in discernable ways? This article will answer all these questions and more and leave you with a workable knowledge of business phone systems.

What is a Phone System?

To properly understand the differences between phone systems, a basic knowledge of what a telephone system is needs to be attained. A phone system acts as an exchange that allows people to communicate both internally and externally. Rather than each phone having a separate line to the Public Telephone Network (PTN), a phone system enables your business to connect all phones, using a limited number of lines.

As well as placing and receiving internal and external calls, phone systems also employ certain basic features designed for business – these will be discussed further on.

PBX Phone Systems

Let us first explain the acronym so as to avoid confusion – PBX stands for Private Branch Exchange. A PBX phone system consists of internal and external phone lines, a console and a computer server. The PBX is a switching system used to manage internal calls and provide external lines to internal phones when needed. Distinguishing itself from the Public Telephone Network though, PBX phone systems can route incoming calls to extensions and connect calls to answering services as well as other more business-specific features that are the trademark of phone systems and which we shall come to later.

IP PBX Phone Systems

An IP (Internet Protocol) PBX does the same thing as an ordinary PBX except it is designed to deliver voice (VoIP) or video over a data network and interoperate with the normal Public Telephone Network. IP PBXs can be either hardware or software based and can provide more advanced functions than ordinary PBXs by integrating with computer systems.

PBX and IP PBX phone systems are not the only business phone systems available, however they act as a standard around which other phone systems are based and are the most widely used phone systems in the business arena.

Phone System Basic Features

Phone systems all share a common set of features that make businesses more efficient – after all, time is money. These features include:

Call Conferencing – the ability to share a phone call between more than two people which can save time and travel

Call Hold – an important feature for business phones – on-hold music or messaging can be added

Call Routing – saves time by routing calls to the right internal extension

Voicemail – one of the most important business telephone system functions. Voicemails can be accessed by individuals or departments and can be also be forwarded

Auto-Attendant – this feature is well used especially with small phone systems as it negates the need for a secretary

These features as stated before, are common to all phone systems. Different types of phone systems however can have different features and as IP phone systems are becoming ever more popular, it is worth noting a few of the extra features that they can provide for your business:

Click-to-Call – uses computer-telephony integration (CTI) so you can simply click on the screen to call

Call Logging and Tracking – this feature is useful to find out call history and other information

Call Screening – allows you to see who is calling before you answer

Benefits of a Business Phone System

A common misconception is that you have to be a multi-national, filthy-rich corporation to have an advanced phone system but that is not the case. Many small and medium businesses have small phone systems that cost little and save them money. A VoIP phone system can seriously reduce costs for instance – calls can be routed over the internet rather than the Public Telephone Network, eradicating almost all call charges. Many businesses also bypass the cost of hiring a secretary by using an auto-attendant instead.

Certain features on a phone system can create the right impression with customers too. On hold messages and on hold music in particular can make a business seem more professional, as first impressions do go a long way.

Many businesses find that a phone system increases efficiency and functionality. For example, phone conferencing can reduce time spent in business travel, speed dial and click-to-call can also reduce time spent looking up phone numbers and voicemail is much more efficient than an answering machine. In the fast-paced world of business, the utilisation of time-saving and efficient tools can often be the difference between a good business and a mediocre business.

Phone Systems – Communication is the Key

Business phone systems then are exchanges that allow people to communicate internally and externally via the Public Telephone Network. Phone systems can come in many different versions with the most popular being the standard PBX and IP PBX phone systems. Phone systems are characterised by bespoke business features common to all phone systems and they can save businesses money as well as making them run more efficiently. Phone systems are becoming one of the essential tools of business now – communication is the key no matter what business you are in and business phone systems undoubtedly broaden communication horizons.

This scenario is seen each week on a show called ‘Heir Hunters’ – it is about what happens to the estates of people who die without making a will…their money goes to distant and far-flung relatives who often never even knew the deceased was even alive. I would hate that to happen to me and it is a very sad thing to consider. One lady’s money went to a cousin who happened to be the last person she would ever have wanted to have her money due to a long running family feud. But she never made a will…

Make a will and ensure your money goes to whoever YOU want it to go to.

The doodles were a UFO and strange crop circles and had the online world abuzz as to what Google were getting at. Each day has seen different drawings but each carried a clue pointing towards the birthdate of Wells – the final being a scene from War of the Worlds. Old Herbert George would be pleased; he would be 143 years old and he fooled people back in 1898 with his stories of mars and martians just as Google flummoxed a more sophisticated audience today.

We always purchase our auto insurance online but ran into problems when we discovered that our make of car is not sold in our home country. Net result is we are having problems finding cover for it. We have narrowed things down to just two companies who may be able to assist us – otherwise we will be looking at selling and repurchasing when we get home.

Talk about a headache!

The shops are now holding huge discount sales and even staying open 24 hours until Xmas Eve – even top designer boutiques such as Oscar de la Renta are feeling the pinch and offering massive bargains.

It is a ’shoppers paradise’ for whoever has the money at the moment – but how many people actually DO…?

That’s a big mistake as you end up paying for just about everything that’s often free elsewhere. Now, you’d expect to pay for the credit card machine itself obviously (and they’re not cheap) and you’d expect to pay some kind of percentage per transaction too. However, ”obviously” the bank would set up the machine for you, wouldn’t they? Not always: some charge $50 or more to do that. You’d also expect to be able to handle mail order transactions as standard? Nope, the “customer not present” facility is often a chargeable option.

However, a non-bank outfit like authorize.net omits almost all of these charges, and in particular those that you’d be surprised at your bank charging you.

But how many people these days manage to do that? I had a friend who was always trying to find new ways of making herself some extra money. One time she decided to venture out and make pet beds - those baskets with the cushions for pampered pets. She run up a few and sold them quickly at the local weekend markets.

It was a great idea until one of those huge pet supermarkets opened nearby and sold the same items…at half the price she was charging for her handmade efforts. Despite that fact that they put her out of business at the markets she ended up selling them on consignment at the shop. So it worked out in the end.

Just recently we had a baby nappy lotion which was said to smooth the face and did brisk business for a few days before it pertered out; before that there was that stuff which resembled egg white which formed a film on the face and cost over eighty dollars. So popular that it sold for hundreds on Ebay. Let me advise you. If you want to buy an anti wrinkle cream and want to find out which one will work and which one will simply empty your wallet then follow that link and read the reviews first.

It’s updated frequently.

How would they cope with things like the mortgage, debts, education…even the smaller things like a vacation if your salary was no longer there? we tend to insure readily the important things in our lives, the material things such as our car, furniture, home…but what about US ?

A life insurance policy is not just a form of security for your family should the unthinkable happen unexpectedly; it is a sign that you think ahead to the future. A good policy can cost as little as one dollar to cover you for as much as $50,000 – that is pretty cheap life insurance when you think about it.

I’ll bet you have made a will to ensure loose ends are tied after you are gone – but how about your family and their financial needs? this is something well worth looking at.

It’s no wonder that the payday loan companies are doing a roaring trade right now; being a relatively new and alternative form of borrowing they obviously suit the circumstances of the average person. You borrow a small amount – up to £750 – no more than that though, and the repayment is debited via your bank account either at the end of a fortnight or a month. The concept of payday loans is not original, being kind of based upon the principals of the pawnbroker, but the interest is usually lower and you can only borrow a relatively small amount of cash and the loan is ’set’ for a short period of time.

One thing though – you really need to be disciplined when opting for this as you could find yourself in the position of needing to defer your repayment. In this case you face additional charges and not only that, but you could find yourself trapped in a nasty cycle. However having said that, if you need a quick loan for an emergency and have your head screwed on right you might find them to be an easy option.