What are the Differences Between VoIP, IP and PBX ?

VoIP Telecommunications

Alexander Graham Bell would be hard-pressed to recognize his invention today! Telephones and telecommunications have come quite far, yet their evolution is increasingly complex as evidenced by the latest phone systems available to businesses today.

Understanding the differences between each system is the only way a business can choose a platform that is right for its employees and customers. The following information can help you get to know the differences between these phone systems so your business can make an informed decision when it comes to choosing between them.


Digital voice transmission is the hallmark of VoIP technology. When it comes to phone systems today, “VoIP offers a more scalable system in which fast-growing companies can add more users. Features that often triggered extra charges through a traditional line are often free via VoIP because of open-source software (Source: VoIP, IP PBX: The ABCs of Telephone Systems).” VoIP allows business to reduce costs by allowing them to easily add, change, or move phone connections as they grow. VoIP also has great features that come alone with it such as voicemail, called ID, and call forwarding (Source: http://askideacom.com/products-services/digital-voip-systems/). Many companies are making the switch to VoIP because that can save money and also obtain some of the most dynamic features in telecommunications today.


A self-owned PBX system involves considerable up-front investment in hardware; however, it also allows the company to hold the reigns of its systems. Even so, if cost is an issue, remember that hardware needs to be maintained and upgraded. PBX hardware can quickly become obsolete in today’s digital climate.


Many businesses with offices that are spread out around the country prefer the IP PBX platform because it treats all callers as if they are in the same office building. Consequently, there is considerable cost-savings to be enjoyed from this model. The IP PBX platform makes use of the Internet so it is a bit of a hybrid when it comes to telecommunications technology.

Choosing a Phone System

It can be helpful to speak with a consultant to better help understand the ins and outs of each system and how one platform might benefit your business more than another. Businesses need both reliable and cost-effective solutions. While these systems each have their strengths, one may be a better fit for your particular organization.

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