The abbreviation PBX stands for Private Branch Exchange. It refers to a system that delivers functions similar to those of a switchboard. Technically, therefore, the system allows the organization to manage internal communication connections as well as external connections too. It does this through the management of communication resources of the organizations; one external line and the numerous internal termini otherwise known as extensions. Anavon Technology Group out of Traverse City is a leader in installing PBX systems for businesses.
Common Infrastructure
PBX systems are can with various communication infrastructure channels such as VoIP, analog and ISDN. Whilst older models were designed for analog systems, VoIP technologies have advanced IP Private Branch Exchange systems. Presently, most systems are IP based offering significantly advanced functionality.
These systems allow an organization to install numerous physical phones without the need for a commensurate increase in actual phone lines. This facilitates free internal communication within the organizations. Communication costs are, therefore, limited for external calls only through the external line.
Although initially prohibitively expensive, technological advancements have contributed to a lowering of the cost. This has facilitated the use of such systems across all sizes of business organizations.
Hosted vs. In-House Systems
Every organization has the choice of either an outright purchase or an externally hosted service. Given the significant costs of purchase (both hardware and software), installation and maintenance, some organizations will opt to outsource the system to companies that work through the cloud. Our article, “Benefits of A PBX System” is a great resource if you want to learn more.
Functions of Private Branch Exchange
1. It facilitates numerous internal communications through extensions
2. It facilitates external communication with the organization through one external line
3. It facilitates the splitting of the organization’s main phone line into numerous internal lines or extensions identified via a three or four digit number known as an extension code
4. It ensures free internal phone communication within the company
5. It provides for automated customer communication management through tools such as digital receptionist/switchboards, voice message recording, call recording and IVR
6. Allows for the customization of company communication through greetings messages
7. It captures call statistics and metering records for every call and extension
Advantages of Private Branch Exchange
1. Cost savings due to free internal telephone communication and the use of VoIP external calls
2. Automation of switchboard services that allows for direction of calls to relevant workstations and staff members
3. Private Branch Exchange ensures ease in contacting the organization through the management of the organization single business phone line
4. Provides for customization of organizations phone messages through the use of pre-recorded responses, prompts and entertainment
5. Provides for multiple in call management tools such as call recording, transfer and
6. Digital systems provide longevity at nominal costs since maintenance is largely a matter of software updates and upgrades
7. Facilitates the queuing of incoming calls
8. Given the various installation options, it provides flexibility on costs depending on the organizations needs and financial capabilities
2. It facilitates external communication with the organization through one external line
3. It facilitates the splitting of the organization’s main phone line into numerous internal lines or extensions identified via a three or four digit number known as an extension code
4. It ensures free internal phone communication within the company
5. It provides for automated customer communication management through tools such as digital receptionist/switchboards, voice message recording, call recording and IVR
6. Allows for the customization of company communication through greetings messages
7. It captures call statistics and metering records for every call and extension
Advantages of Private Branch Exchange
1. Cost savings due to free internal telephone communication and the use of VoIP external calls
2. Automation of switchboard services that allows for direction of calls to relevant workstations and staff members
3. Private Branch Exchange ensures ease in contacting the organization through the management of the organization single business phone line
4. Provides for customization of organizations phone messages through the use of pre-recorded responses, prompts and entertainment
5. Provides for multiple in call management tools such as call recording, transfer and
6. Digital systems provide longevity at nominal costs since maintenance is largely a matter of software updates and upgrades
7. Facilitates the queuing of incoming calls
8. Given the various installation options, it provides flexibility on costs depending on the organizations needs and financial capabilities
How it Works
To understand how Private Branch Exchange systems work, one must comprehend the functioning of the traditional switchboard. For a regular telephone system, telephone lines are linked via trunk lines to the physical location of the service provider’s LCO (Local Central Office). A human operator stationed here then routs all incoming and outgoing calls.
Additionally, service providers would provide caller ID capabilities, voice mail recording and call forwarding facilities. A monthly fee is then levied on you for these services. For a company requiring several phone numbers/lines, the telephone bills can become prohibitive. This is why the acquisition of a Private Branch Exchange system is preferred for any business be it small, medium or large.
With the modern IP Private Branch Exchange systems, the LCO is replaced. A switchboard of sorts is then hosted in the system. This is through either a cloud or physical hardware in a server room. Upon completion of installation, various employees and their workstations are connected through their extension codes. This connection allows the system to handle any internal and external calls.
A VoIP Private Branch Exchange system offers a significant competitive advantage to any business. The cost savings on purchase, installation and maintenance are significant enough to influence the profitability of an organization. Additionally, the customization options help give a personal touch to organizational communications with clients, stakeholders and suppliers. The inherent flexibility and adaptability of this technology should offer options suitable to the unique communication needs of any organizations.
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