Blog Layout

What is a PBX or PABX Phone System? Your Guide to Business Phone Systems
Steven Jonker • 7 October 2021

You hopped online to have a look at your business’s options for a telephone system and… Information overload. Countless abbreviations later and you're more confused than before.. We get it!


Let’s break things down into simpler terms.


Overview:

  • What is a PBX or PABX Phone System?
  • Is There a Difference Between PBX and PABX?
  • How Does A PABX Phone System Work?
  • Types of PABX Phone Systems
  • PABX Features


What is a PBX or PABX Phone System?

The terms ‘PBX’ and ‘PABX’ are quite simply referring to business-grade phone systems.

These phone systems are able to provide businesses with key features that assist with and optimise daily business operations.


Is There a Difference Between PBX and PABX?

Both PBX and PABX serve the same purpose (they are both switching systems). You can, however, think of PABX (Private Automatic Branch Exchange) as an upgraded version of the traditional PBX (Private Business Exchange). 


Traditional PBX Systems (Private Branch Exchanges) have been around for a long time. As they were introduced prior to the arrival of the internet, they lack many modern day features and make use of human operators to manage the switchboards used in telephone exchanges.


PABX systems on the other hand, make use of computers in order to automate the switching process. PABX systems allow businesses to run their own internal phone network using local extension numbers. 


Note: Though there may be notable differences between traditional PBX systems and modern PABX systems... Today, the words ‘PABX’ and ‘PBX’ have become more or less synonymous.

PBX can now refer to both automated and manual systems. (As you can host an Internet-based PBX in the cloud).


How Does A PABX Phone System Work?

PABX systems operate by using either VoIP (Voice Over Internet Protocol) or via analog (traditional, as discussed above) or digital phone lines. With a PBX phone system, the physical phone line coming into your business can be split into multiple lines, allowing you to support more telephones and scale according to your business’s needs. 


Types of PABX Phone Systems:


Analog PBX Phone Systems

As mentioned above, traditional PBX systems are rather outdated and lack most modern key features. These phone systems connect to the Public Switch Telephone Network (PSTN) over Plain Old Telephone Service (POTS) lines. The PBX manages calls between phones and fax machines by being physically connected to them via copper wires. These physical ‘boxes’ will generally live in an office's telecom closet.


VoIP PABX Systems

Also known as IP PBX, VoIP represents a newer version of PBX by making use of IP (Internet Protocol) to carry calls, instead of traditional phone lines. Put simply, voice is converted into data that is transmitted over the Internet, then it is converted back to voice for the receiver. 


VoIP PABX systems offer the same functions as those of traditional PBX, while providing many additional features. Users are also not confined to a single location


For a detailed list on the benefits of VoIP, click here.


On-Premise & Cloud (Hosted) PABX Systems

It is important to note that with on-premise (or IP PABX) there is an actual 'box on the wall' that all of your Business’s telephones plug into. A hosted PABX, on the other hand, uses the cloud (instead of an actual box). 


On-Premise PABX

On-Premise systems are slightly different from hosted PBX telephone systems. They still make use of voice-over IP technology to manage the business telephone system. However, the servers to manage outgoing and incoming calls are maintained on-site, by the business itself. These systems do require initial upfront costs (of installations and maintenance) as well as internal IT staffing capable of maintaining them.


Cloud PABX

Cloud PBX (also known as Virtual or Hosted PBX) is a type of IP (Internet Protocol) phone system. 

These virtual systems make use of an internet connection to a VoIP service provider. 

Everything is taken care of by the service provider. (including the routing of all incoming and outgoing calls) and no additional on-site equipment is needed.


For more information about the benefits of a hosted system, click here.


Some Standard & Advanced PABX Features:

(View Detailed Features)


  • Voicemail Options
  • Find me/Follow me
  • whether an employee is using a mobile device, landline or desktop and no matter where they are, they can always be reached.
  • Automated Attendants
  • lets each business set up their own ‘virtual secretary’ according to their companies brand image 
  • Call Recording
  • from the managing of disputes and the training of employees to liability and call quality monitoring.
  • Call Log Reports
  • Call log reporting enables businesses to access complete records of all outbound & inbound calls..
  • “On Hold” Messages and Music
  • This feature has been put in place to ease that frustration of being placed “on hold”, allowing businesses to ‘fill the void’ with music either chosen from a set list or uploaded (for more of a personal touch). 
  • Call Transfers
  • Hosted PABX systems allow for calls to be transferred quickly and effortlessly to the correct people within an organisation (whether that be within the same office, in another building or even in another country). 
  • Call Forwarding
  • Call forwarding makes it possible for employees to be ‘on call’ anywhere and at any time by giving them the ability to forward calls directly to their mobile devices or any given number.
  • Conference Calling
  • Conference calling allows users to add multiple callers to the conference and callers to ‘call in’ and join the conference call. 


In Conclusion:

PABX systems have also become an affordable solution for many businesses, giving them more control and flexibility over their voice communication processes. Finding the best system to suit your business needs can be a tricky task.


For advice as to which system is right for your business, use our smart pabx quote wizard to get pricing for your business phone system.

We are here for you.

by Tyla Jonker 13 November 2024
With flexible work becoming the norm, seamless communication across locations is essential for business productivity.  Integrating mobile devices into your business phone system can keep teams connected, improve responsiveness, and boost efficiency. This guide outlines the key benefits of mobile integration and offers practical steps to make it a smooth part of your communication strategy. Below, we’ll explore the benefits of mobile integration, providing actionable steps to seamlessly incorporate mobile devices into your business phone infrastructure.
by Tyla Jonker 14 October 2024
Not all industries operate the same way, and their communication requirements vary significantly. A one-size-fits-all phone system often falls short when it comes to delivering the unique functionalities businesses need. Whether you're in healthcare, legal, retail, or hospitality, choosing the right business phone system can enhance productivity, improve customer service, and meet industry-specific challenges. In this blog, we'll explore how business phone systems can be customized for different industries and why it's crucial to tailor your communication tools to suit your business needs.
by Tyla Jonker 30 September 2024
Choosing the right printer for your business can be overwhelming with so many options available. However, not all printers are created equal, and your industry plays a major role in determining which solution will best suit your needs. Whether you're in healthcare, legal, education, or retail, having a printer tailored to your specific industry can enhance productivity, improve workflow, and save costs in the long run.
by Tyla Jonker 2 September 2024
Whether you're a business owner, manager, or someone tasked with improving your company’s operations, making informed decisions is crucial to success. One powerful (and definitely underutilized) tool is the data generated by your VoIP (Voice over Internet Protocol) system. VoIP isn’t just about handling calls - it's a treasure trove of data that, when properly analyzed, can transform the way your business operates. With your VoIP data analytics, you can uncover insights that improve decision-making, enhance customer satisfaction, and boost efficiency. Why VoIP Data Analytics Matters to Your Role: VoIP data analytics involves collecting, analyzing, and interpreting data from your VoIP system - things like call duration, frequency, quality, and response times. But this isn’t just a pile of numbers - it’s actionable intelligence that can help you understand your communication patterns, customer behavior, and overall business performance. If you're responsible for optimizing your company's operations, customer experience, or resource allocation, VoIP data analytics provides you with the insights needed to make smarter, data-driven decisions that lead to better outcomes.
by Tyla Jonker 7 August 2024
For businesses today, providing exceptional customer service is more important than ever.  One often overlooked aspect of customer service is the efficiency and effectiveness of a company’s phone system , specifically the call routing mechanism. Advanced call routing techniques can significantly enhance customer satisfaction by ensuring calls are directed to the right person quickly and efficiently. Let's explore the importance of efficient call routing and some advanced techniques that can improve customer service.
by Tyla Jonker 17 July 2024
Efficiency and seamless operations are critical for any business. One often-overlooked aspect of achieving this is the integration of printers with other office technologies. When your business printers work harmoniously with your existing systems, you can significantly boost productivity, reduce downtime, and enhance overall workflow. Here’s how integrating printers with other office technologies can create a more efficient and cohesive work environment.
by Tyla Jonker 21 June 2024
Maintaining uninterrupted communication is essential for ensuring business continuity during emergencies or disasters. A well-thought-out communication strategy can minimize downtime, protect data integrity, and keep your business operations running smoothly.  Here, we will discuss key strategies to achieve robust business communications, focusing on setting up backup systems, leveraging cloud-based tools, and creating a comprehensive business continuity plan.
by Tyla Jonker 28 May 2024
As more of our important information is being conveyed online and electronically - the risk of cyber threats increases. And with this increase in risk - the importance of robust and reliable cybersecurity measures for modern businesses - cannot be overstated! At X-Corp , we understand the unique challenges modern businesses face when it comes to protecting their information. For this very reason, we offer comprehensive solutions to safeguard against these kinds of cyber attacks and help businesses like yours prioritise protecting their communication and printer systems. In this blog post, we will explore best practices for securing your communication and printer system s and how we, at X-Corp can help you enhance your cybersecurity posture.
by Tyla Jonker 8 May 2024
As technology evolves, so do the tools we use to connect with clients, partners, and colleagues. One such innovation that is reshaping communication within organizations is the integration of Artificial Intelligence (AI) into business phone systems. We’re all about innovation at X-Corp and we believe strongly in empowering businesses to harness the power of AI. From streamlining operations to enhancing customer experiences - let’s have a look at some of the benefits of the integration of artificial intelligence into modern phone systems …
by Tyla Jonker 17 April 2024
Remote work has become a norm rather than an exception. With this shift, the needs of businesses and their workforce have evolved, including the demand for efficient printing solutions . X-Corp Business Solutions recognizes this paradigm shift and is committed to providing tailored printing solutions to meet the demands of today's remote workforce. 
More posts
Share by: