Private branch exchange or PBX is a term used to describe the machine/device that controls your businesses incoming and outgoing telephone calls. Most businesses use some form of PBX to ensure that callers can get to the person or department they need to quickly and seamlessly.
PBX telephone systems are also known as telephone systems, PABXs, telephone exchanges or telephone switches.
Ever since the first PBX was introduced, there has been considerable development in how telephone systems function. The first PBX telephone systems took up entire rooms and required constant attention to ensure they worked correctly. However, modern PBX systems are cloud based, removing the need for any on-premise telephone equipment.
How do PBXs work?
Although PBX telephone systems sound complicated, they’re actually quite a simple premise. PBXs take your incoming and outgoing calls, and connects them to the caller.
There are two types of PBX telephone systems:
- On-premise PBX telephone systems
- Hosted PBX telephone systems
As you can see from the diagram, the PBX is a relatively simple concept. It provides each of your team with an individual telephone number (called an extension or DDI). This number can be used to call our from their own deskphone.
Having a PBX also enables you to offer a better caller experience for your clients. Giving them over the phone options (such as press 1 for sales, 2 for accounts) and helping them get to the person they need to speak to quickly and easily.
The difference between hosted PBX and on premise PBX.
On-premise PBX telephone systems are the grandad of telecommunications. They’ve been around ever since the PBX was invented and serve as a communications platform for lots of businesses. On premise telephone systems use multiple telephone lines and outdated technology to carry your business calls.
Hosted PBXs are slightly different. Using only your broadband connection, your business can connect to a cloud based PBX, which controls your calls. This makes better use of your businesses internet connection, and helps reduce your running costs.