There are many options for choosing a telephone PBX system. In addition to traditional PBX brands from Japanese and American manufacturers, there are now Cloud PBX systems to consider. How do you choose the system that’s right for your business?
This article briefly discusses the evolution of telephone PBX systems and highlights the key considerations to keep in mind when selecting a PBX system. Key factors include long-term total cost, scalability, mobility, security and sustainability.
To make an informed decision, one must understand the differences between traditional PBX hardware and Cloud PBX systems.
What is a PBX?
A PBX (Private Branch Exchange), also known as a telephone exchange, serves the primary function of consolidating incoming calls and directing them to different extensions for response. If you have a dedicated extension number at a company, school, or institution, it means you are part of a PBX service.
PBX systems have changed significantly from the late 19th century to the present. Originally calls were manually transferred by human operators, then automatically by physical equipment and now by cloud-based software that enhances functionality and efficiency.
What are the different types of PBX systems?
When searching for “PBX,”have you ever felt overwhelmed by numerous technical terms? Sometimes, even the same term can have completely different explanations across various websites.
Don't worry! Below, we've compiled a list of the four most common types of PBX systems available in Taiwan, along with a brief classification and introduction for each.
Traditional PBX (legacy PBX)
Traditional PBX operates through conventional physical telephone lines, managing and distributing incoming calls via switching equipment (external line cards and extension cards in a single chassis). These systems use desktop phones to receive calls on extensions.
Common terms found online such as “key telephone system” or “intercom telephone system” belong to this category of traditional PBX.
IP PBX (Internet Protocol PBX)
Unlike traditional PBX that uses physical telephone lines, IP PBX utilizes VoIP (Voice over Internet Protocol) technology to make calls over the internet. It includes all the functionalities of traditional PBX, such as internal dialing, three-way calling, company greetings, call forwarding and call answering.
IP PBX can be implemented on physical PBX equipment, or it can be purely software and cloud based.
Hosted PBX
Most hosted PBX systems in Taiwan are similar to IP PBX. Although they use VoIP technology for communication, they still require hardware equipment and physical devices to operate. However, unlike traditional PBX, users do not have to maintain the equipment themselves; it is centrally managed by the service provider.
Online vendors in Taiwan who promote IP PBX services like Centralized Digital Exchange IP Centrex typically fall under the category of hosted PBX.
Cloud PBX
Cloud PBX, also known as a cloud exchange, is the latest fully cloud-based type of VoIP system. Unlike hosted PBX, Cloud PBX operates entirely in the cloud and requires no hardware equipment and no vendor management.
With the convenience and scalability of cloud services, Cloud PBX not only supports mobile extensions but additional functionalities such as cloud landline services, electronic faxing and multi-site management,and Cloud Recording.
Key differences between physical equipment and cloud
Traditional PBX vs. Cloud PBX
If your telephone exchange system is working fine, why switch to the cloud?
The cloudification of enterprise tools is inevitable. One example of this is Microsoft who, despite the high market share Office enjoyed, was forced to move the product to the cloud. The company bowed to public demand after Google introduced online editing tools.
Moving your telephone exchange systems to the cloud not only offers the functionality of traditional PBX, but additional benefits unique to the cloud. Cloud PBX helps businesses save on long-term comprehensive costs, enhances scalability, improves mobility and provides better security and sustainability for the system itself.
From this article:Eight key differences between Cloud PBX and legacy hardware PBX you can gain a deeper understanding of the differences between the two systems based on the key points that enterprises care about most.
Hosted PBX vs. Cloud PBX
Both use VoIP technology for communication, but what are the benefits of the cloud versus relying on physical hardware?
1.Security and sustainability
Cloud PBX operates independently of hardware, which reduces the risk of equipment damage due to natural disasters or human error and eliminates concerns about aging hardware failures.
2.Responsiveness and scalability
Cloud services offer higher responsiveness and flexibility. In the event of personnel changes or emergencies, adjustments can be made immediately. When a company expands, there are no limitations related to expansion cards that physical PBX systems may encounter.
Many Cloud PBX systems can adjust instantly to handle unexpected situations. With EVOX CloudTalk, for example, administrators can log into an online management tool from any browser to edit extensions, auto-attendants, call greetings and other settings. Changes to the system take effect immediately.
What common problems does Cloud PBX solve?
The need to relocate PBX equipment and change numbers when the office moves
Moving an office is complicated; in addition to relocating furniture, documents and personal computers, with traditional PBX there’s also the need to move networking and phone PBX equipment in the server room. This frequently means:
• Changing phone numbers when moving to a new area, even within the same city
• New office layouts being restricted by existing server room configurations
• Disruptions in external communications during the move
• Potential damage to desk phones during relocation
With a Cloud PBX, there’s no need to move physical hardware and you can design the new office layout the way you want. You can maintain communication with the outside world using mobile extensions even during your move.
More info：
Cloud PBX allows you to move your office without changing your phone number or moving equipment.Should you spend money on repairs if your PBX is old and beginning to malfunction?
The downside of physical equipment is its limited lifespan. Even if it hasn't reached the end of its life, it can still be affected by various disasters and accidents that may cause damage. As equipment ages, the likelihood of a malfunction increases. When a vendor is called out, even for a minor adjustment, it’s usually costly.
Even after a repair, the hardware can continue to break down. With Cloud PBX, you can avoid these hardware headaches altogether.
What if you've just purchased PBX equipment but want to experience the additional functionality of Cloud PBX? Is There a transitional solution?
EVOX's EGate cloud integration technology allows businesses to connect their existing PBX systems to Cloud PBX through a gateway. This means that companies can enjoy the flexibility and convenience of Cloud PBX without having to replace their current equipment or invest in a completely new system.
What about companies who are expanding with new branches or divisions? Do you have to purchase and install a PBX system for each location?
EVOX CloudTalk’s multi-site management feature allows headquarters to easily add and manage multiple locations, facilitating quicker communication with no physical equipment or installation costs.
When opening a new branch, store, or location, you simply need to add an account and extension using the online Admin tool. All internal calls between locations are free, even for international branches.
What about employees who want to use their personal mobile phones for work?
For many employees who are frequently on the move, the concept of “work from anywhere” has become a reality. Traditionally companies have given them company phones, used MVPNs, set up call forwarding or let employees use dual-SIM phones to facilitate mobility.
The mobile extension feature of Cloud PBX offers a better solution. It allows employees to answer company extension calls on their mobile phones. This allows them to carry one device and keep their personal number private while maintaining a professional image.
How do you have remote workers and still provide customer service?
Many businesses have started to explore and implement remote work in response to the pandemic. While video conferencing software is the most used solution, it’s impractical for customer service and sales teams to conduct every customer interaction via video, especially when handling orders.
Cloud PBX allows employees to make and receive calls using the company's business number, even from home. Call costs are charged directly to the company’s account without the need for separate expense claims. This is convenient for both the company and its employees.
What are the differences between Cloud PBX and Line/Skype?
While all three services use the internet and apps for making calls, these calling solutions are suitable for different scenarios and target audiences.
For instance, using Line is appropriate for managing a personal studio or community groups, while Skype is ideal for internal company communication. However, for formal external communications, these social applications are not suitable.
Companies need a fixed landline number for external contact and require a PBX system to manage incoming calls—features that social media applications lack.
More info：
Apps like Skype or Line are not recommended for business purposes. Is VoIP right for your company.Additional concerns with Cloud PBX
Learning a new system
Companies accustomed to traditional PBX systems may be concerned about the learning curve when adopting a Cloud PBX system. However, a trial period will prove that that most employees easily onboard. For users, most functions are like the functions they are used to with traditional PBX and for administrators, the easy UI allows them to log in and make changes on the fly with no programming experience.
Call quality
Call quality is undoubtedly one of the most critical reference points when comparing Cloud PBX vendors. A trial service period is recommended to allow you to gauge the quality.
Security
Many companies are hesitant to employ public cloud systems due to concerns about security and potential cybersecurity threats.
However, when you think about it, it’s akin to deciding to keep money in a home safe over a bank. Both can be targeted by thieves, but a bank typically employs tighter security than a home.
Traditional PBX systems or hosted PBX with on-premises equipment are often susceptible to ransomware attacks. According to statistics from Taiwan’s Executive Yuan Cybersecurity Office, public sectors in Taiwan face up to 30 million cyberattacks monthly, reminding us of previous ransomware incidents like ColdLock.
The security of cloud systems varies just like bank security. If a system is hosted in an obscure company’s data center, then its security may indeed be a concern. However, EVOX systems are hosted on Amazon Web Services (AWS), which offers the highest levels of cybersecurity protection in the world.
Hosted PBX providers claiming to be Cloud PBX providers
Many online services claim to be Cloud PBX but just host PBX equipment elsewhere. it’s crucial to clarify the distinction between hosted PBX and Cloud PBX when consulting with vendors.
Conclusion
In this post-pandemic era, predicting the future is difficult. Tools and systems that are flexible, adaptable to various needs and capable of accelerating digital transformation will help companies navigate challenges. This is especially true for your telephone PBX system.
To keep pace with the world, an increasing number of companies, including your competitors, are beginning to replace traditional PBX systems with Cloud PBX solutions.
To learn more about EVOX’s user experiences, click [here] to see their stories.
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