Businesses with 40 or more employees that need constant lines of communication to the world often have one reliable communication solution: the private branch exchange (PBX) system. A PBX is a hardware and software system that connects calls to and from phones within the business.

Getting a business PBX today is simple enough, but not all PBX systems are the same. If you want to get the best equipment for your business, you need to determine your organization’s needs and which system on the market will fit your requirements. Below are the PBX system options you can check out:

Traditional PBX

Companies have been using this exchange for decades. It consists of traditional landlines and a switching system, so you’re sure of its reliability. When you need to make an outgoing or interdepartmental call or receive if someone needs to speak with you, the phone is there to connect you in an instant. Plus, the sound quality is also pretty good.

The main drawback of this system is that it can be pretty unwieldy because of all the wiring. If your office is inside an old building, however, this might be a good choice since the infrastructure is already in place.


The IP PBX is the 21st-century version of the exchange. Instead of the traditional landline and internal switch, the bulk of your communication data is transferred and routed via IP or Internet Protocol. Technically, you’re making calls through the Internet. The benefit of this is that every call done via IP PBX costs relatively lower than a traditional landline call. If your business handles a large volume of calls, such as in the case of sales or customer service providers, this exchange is ideal for you.

IP PBX systems, however, require a steady Internet connection. If you lose that connection, you also lose your communication capability. It also needs a full setup, so you’re going to have to spend quite a bit of money on it.

business woman using phone system to accomodate caller

Hosted PBX

Thanks to internet advances, you can now use a PBX system without needing for it to be on-site. As long as you have an Internet connection, you may rent a PBX from a hosting company. Several bundled packages can provide your company with both PBX hosting and data connection.

This service needs a monthly payment, but it is still less expensive than buying a full PBX system in one go. It also removes the need to purchase specialized equipment and phones, eliminating another expense.

Since the system relies on the host’s site, your problem may be the limited number of lines available and the low voice quality. You also have no control over the PBX itself. The host has the final say of what features you have access to or what potential upgrades can be done.

Make That Call

A PBX system is an asset for any company. Having a good one can be a big help when communicating with partners, suppliers, and customers. Evaluate which PBX system will fit your business’ needs, then make that call.