Internet protocol is an essential component of the communication process; notably, internet protocol is useful in addressing information, routing connections and formatting the messages to give the desired signals that can always be interpreted. There are several types of internet protocol (IP) available for use. Some of the widely used IP include; voice over internet protocol (VOIP) and IP-Private branch exchange (IP PBX). Communication being a critical aspect in the success of any business, enormous investment to ensure optimal productive calls at affordable rates and reliable connectivity is indispensable. Choice of the right Internet protocol to your business may be distress and is usually never a trial and error event owing to the considerable capitation involved.

A clear understanding of the different types of IP services available will candidly guide you to the decision on which IP service best suits your enterprise. The traditional PBX has been in existence for many years and is relatively well known to many, and it allows communication through phone call within a company hosting multiple departments. Conspicuous uses of PBX include receptionist services, single access point calls and management of calls. Traditional PBX, hosted PBX, virtual and IP PBX are the distinct types of PBX that are well embraced globally. In the debate of hosted PBX vs. traditional PBX, hosted PBX outweighs the traditional PBX in that, no initial setup costs, no hardware to maintain and one low monthly fee are attained.

On the other hand, the VoIP gateway exists at the edge of a network where it disintegrates conversations to packages for transmission over an IP network. Regardless of whether traffic is analog or digital, the VoIP gateway can create digital packets for efficient communication. VOIP is the transmission of calls and other multimedia contents over the IP and has proven to give better quality calls than initially witnessed with predecessor connectivity methods.

Both IP PBX and VOIP have tremendously improved the quality of calls within companies, so what’s the difference between IP PBX and VOIP? In comparing the two, we consider the following parameters;

Features and functions included in the respective connection

Typical voice calls are strictly relayed as either analog or digital signals. IP PBX usually have multiple numbers connected to the one line, call management whereas, for VOIP Voicemail transcription, simultaneous ringing, video chat, customer management tools are enabled.

VOIP technology permits encoding of voice into data packets which are then broken down into smaller units that are transmitted electronically. In an IP PBX system, the conversation of the voice packets into data packets happens at the source; thus IP PBX is often referred to as a native IP device.

The variation in scalability levels

This is a significant differentiating factor in the VOIP vs. IP PBX comparison. While the IP PBX allows a limited amount of lines, the VOIP is highly scalable and can accommodate as many lines as your bandwidth can allow. While IP PBX systems are scalable, their local concentration makes it challenging to globalize the solution cost-effectively. In addition, IP PBX solutions are a tandem strategy. Wholesale PBX upgrades can be expensive and buying new cabling for VoIP telephones can dramatically escalate the cost. VoIP gateways are a better option for companies looking to transit into a new system seamlessly.

Installation and maintenance cost considerations

High set-up and maintenance cost is depicted in IP PBX, this a reason why most organization prefer to maintain their traditional system that did cost a fortune to installing new and more advanced communication systems. Contrary, VOIP is associated with low set-up cost and relatively cheap call rates. Besides, they exhibit lower maintenance cost, and this is attributable to their software-based nature.

Call quality and reliability in VOIP and IP PBX

The difference in call quality is entirely negligible and will not adversely affect the communication process. However, VOIP boasts explicitly of excellent call quality and call reliability since it incorporates advanced features and packetization of conversation. For IP PBX, the conversation is often packetized at the source, and signal interference is a common irresistible occurrence.

Accessibility and flexibility preferences

Both systems are widely accessible from many mobile devices regardless of your location thus usage is enhanced by extensive range mobility and portability. Therefore, a reason for complimentary use in some organization. Nevertheless, flexibility integrated into VOIP is paramount to ensure that companies have more alternatives as they move to new IP connections.  VOIP can be used for deploying virtual software services across PC, desk phone, mobile and a variety of communication devices. Furthermore, it is ideal for small companies with limited capital and IT expertise.

Worldwide, small and mid-size businesses are transitioning from traditional telephone systems to new IP PBX and VOIP systems to reduce costs and enhance efficiency. IP PBX phone system is a buzz in the contemporary communication market as it is endowed with handy satisfying features to fulfilling most of the communication needs in an office. IP PBX provides a uniquely portable channel of communication in companies plus affordable call rates. This phone system gives businesses a competitive edge over rivals not using the same as productivity is facilitated and financial control is achievable.

These two nearly similar telephony systems are often confused, and distinctive comparison will show unexpected variations that will critically influence communication processes in a business. While VOIP system is detailed with many advantages, the kind of phone system you choose will squarely depend on the size and type of enterprise you operate together with the kind of infrastructure at your disposal.

Some instances will require a blend of both systems and simultaneous operation to maximize productivity while minimizing costs.  Knowing your communication requirements and technicalities involved are the top considerations before choosing a telephony system. Such needs are unique to every business, and we can never have a conventional telephony system. Recent statistics by small business chronicles shows that proper integration of communication technology in businesses improves the turn-over by approximately 56%. To settle for the best option, it is essential to understand both the financial and implementation requirements.