Many people ask for the a voip pbx system definition, which is one of the easiest ways for businesses to save money on overhead, so I will clarify just what it means here. It is worth deconstructing the phrase to shed light on its meaning.
VOIP – Voice over Internet protocol (IP) is the transmission of voice over internet infrastructure. This transmission is powered by simple technology that uses internet bandwidth (data capacity) for the movement of voice in digital ‘packets’ over internet infrastructure. Essentially, voice gets converted by the phone or by the router into a data form that can be transferred over internet cable (fiber optic, coaxial, etc). It is then routed over the internet by a server to a server close to its destination, where it is transmitted for the “last mile” either through traditional phone infrastructure (for which the VOIP transmitter pays a small fee) or all the way through the internet infrastructure, where it is converted or ‘reconstructed’ back into voice. While in the past this ‘reconstruction’ has resulted in tinny-sounding voices, advancements in digital coding now permit for perfectly natural-sounding voice, especially with the aid of superior VOIP handsets.
PBX – Private branch exchange is a type of network that allows individual phone numbers to also be ‘branches’ off of one main phone number. This allows for a caller to reach an ‘extension’ directly, but also makes it possible for the administrator of the branches to use just one or two main numbers for outgoing calls from each of the extensions. The result is a network that makes transferring calls a breeze and that saves money on otherwise expensive outgoing phone lines. The downside of a PBX is that although the savings on calling can be substantial, the hardware required to create the network is expensive and complicated, making it hard to recover the initial investment in the network and diverting the attention of employees away from areas of core competency (i.e., day-to-day business of making money).
The hosted voip pbx system solution that we offer incorporates all the cost-saving benefits of VOIP PBX technologies while eliminating the problem of administering a complex network and buying expensive hosting equipment: every savvy cost-cutter’s dream.
