PBX Definition and Explanation

Modern computing allows us to communicate in extraordinary ways. Gone are the days of having to rely on a staticky, interruption-prone phone connection just to speak with someone. Technological advancements like the internet and cloud-based computing have propelled voice communication into an entirely new era. As part of this new communication paradigm, new ways of orchestrating communication have surfaced. Among them, PBX acts as a component of an overall communication structure, much like a cog in a complicated machine.

Definition

PBX is an acronym that stands for ‘Private Branch Exchange’, and it is a term used to describe modern phone systems that use a combination of analog and digital technologies to make telephone communication simple and inexpensive.

Providers

Typically, a Private Branch Exchange system is created by a manufacturer like Avaya, Cisco or Polycom. Then, the system is configured to support potentially thousands of different phone extensions all on the same network. The system manages all features of both internal and external telephone communication, including voicemail, call waiting, call forwarding, audio conferencing and call recording. Thanks to the advent of cloud-based services, many Private Branch Exchange systems can be hosted on ‘the cloud’, completely removing the need for physical hardware. However, due to the security concerns of some companies, having a physical system can be preferable.

The New Business Communication

Why do businesses opt for this method of telephone communication versus the old method of analog systems? First of all, the cost to operate the system is remarkably low. This is because local calls between different phones are managed by the system and hence are completely free. Also, system management features allow for every phone extension to operate under specific guidelines and rules. This means that calling restrictions and usage permissions can be applied to any extension regardless where it is physically located.

Almost all Private Branch Exchange systems interface with the Public Switch Telephone Network, also known as PTSN. PSTN operators are typically local phone companies that are responsible for connecting a Private Branch Exchange with the ‘last mile’ connection required to complete a telephone call. Historically, telephone communication required the use of two-wire cabling to physically connect two telephones together. Now, most telephone numbers are reserved for virtual connections that don’t even require physical telephone handsets. To use a standard, Plain Old Telephone System (POTS) with today’s available technology simply doesn’t make sense economically or otherwise.

Some consumers choose to continue using POTS systems. This is especially the case for residential land lines used by an aging population. For these users, there simply is no need for a Private Branch Exchange, because there is only one phone extension. And, there are no other users aside from that single home. In order for a Private Branch Exchange system to be useful, there would need to be a variety of different users in various geographical locations, all with their own security and telephone access needs. It also helps to have a network administrator or other IT professional on hand to address hardware service needs, should they arise. Contacting the manufacturer about their specific warranties relevant to Private Branch Exchange products is the best way to understand how servicing these devices works.

All in all, using a Private Branch Exchange system as part of an overall telephone communications strategy is simply a good decision. Especially when pairing it with concurrent modern technologies like the cloud and Software As A Service (also known as Saas), Private Branch Exchanges offer a low-cost, reliable solution to the needs of sophisticated consumers everywhere. To determine if your business could benefit from the use of a Private Branch Exchange, consider the different qualification points listed in this article. Do you have multiple users? Are they in disparate locations? Do you need a budget-friendly solution? Answering yes to these questions means you’re probably a good candidate for a high-quality Private Branch Exchange telephone system. After all, with the demanding business climate of today, efficiency wins in the end.

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