Basically, a PBX is a local telephone system that is not connected to a data network. VoIP (Voice over Internet Protocol) is another form of telephone system technology. VoIP means that the voice is converted into data, packaged and transmitted over a data network. VoIP can be hosted or on-site.
By definition, an analog PBX system can only process voice calls. With both IP PBX and VoIP, you can use instant messages and conference calls. The difference is that you can do this across offices and state lines with VoIP. Our Pro and Enterprise plans include unlimited VoIP video, voice, and conference calls in your monthly fee. Both PBX and VoIP have their pros and cons. A hosted telephone system is a cloud-based telephone system, whereas VoIP is the method of making phone calls.
A hosted telephone system uses VoIP in its operation. Both work together as a platform and method. Since cable connections are generally shared by multiple users, a high number of concurrent connections can also have a negative impact on the quality of a VoIP call. With VoIP, the situation is a bit more complicated, as there can be multiple causes for poor sound quality.
A PBX system is essentially a small telephone network that uses standard telephone lines for incoming and outgoing calls. One limitation is that they need enough IT staff and a reasonable technology budget to deploy and maintain a PBX system. Because VoIP calls use the Internet, you’re limited to the bandwidth allocated by your Internet service provider. VoIP also offers several features that are either not available on PBX phones or are very expensive to add.
Ultimately, the quality of your hardware (things like routers, switches, and your VoIP gateway) determines the quality of your calls. With the advent of VoIP and hosted PBX systems, there are far fewer companies offering local PBX systems. With VoIP, you can adjust your plan frequently to get the features you need without making any hardware changes. In most cases, a VoIP call involves a number of external factors that individual users cannot control.
Most of us probably remember the early days of VoIP services — call quality left a lot to be desired back then.