How to Select a PBX System for Your Business

Whether you’re a small startup or a growing business, the PBX system you choose will determine the efficiency of your operations and how your team communicates—both internally and externally. You need a way to give your staff their own phones without giving each person a dedicated phone line. In other words, you need a business phone system.

This is where PBX systems come in. So, what is PBX? What are your options, and how do you choose the best PBX system for your company? Let’s find out.

What is a PBX Phone System?

A Private Branch Exchange (PBX) system, as the name suggests, is a private telephone network composed of various hardware components that allows users to manage incoming and outgoing calls, check voicemail, put calls on hold, transfer calls, and more.

Initially, PBX was completely onsite and difficult and expensive to maintain. The PBX systems’ original communication medium were Public Switched Telephone Networks (PSTN) or copper landlines. But with the advancement of technology, modern PBX systems such as Voice over Internet Protocol (VoIP), Integrated Services Digital Network (ISDN), and Session Initiation Protocol (SIP) have become viable alternatives. Basically, modern telephony systems are dependent on digital signals and not physical wiring and hardware.

Why Do You Need a PBX System?

You might be wondering if a PBX system is even necessary. PBX offers several benefits and features, regardless of the size and scale of the business. Here are reasons you should have one installed:

Connect Internally

One of the main reasons why a business needs a PBX system is that it allows employees to easily connect with each other. Communication is the foundation of interpersonal and professional relationships, and businesses are no exception. Regardless of the size and scale of the organization, PBX improves collaboration and productivity across teams.

Leverage Advanced Call Features

Ideally, a PBX phone system provides advanced features such as voicemail, call forwarding, analytics, call queueing, call recording, texting, auto attendant, conferencing, and more. When choosing PBX for your business, identify which features are essential for your operations.

PBX advanced call features in use

Adapt to Changing Business Needs

As your business grows, its communication needs will evolve with it. A PBX system gives companies the flexibility to scale up or down as required. For example, if you’re adding new users or opening a new branch, you can add new extensions without installing physical phone lines.

Connect Across Multiple Devices and Applications

Many modern PBX systems are compatible with other communication tools, including email, instant messaging, and video conferencing. This streamlined the management of your entire communication system and frees up the time spent on administrative tasks.

Types of PBX Phone Systems

There are 4 main types of PBX systems for small to medium businesses: traditional, on-premise, hosted or IP, and cloud-based.

Analog/Traditional/On-Premises

Analog is the oldest form of private branch exchange tech. It connects users through traditional copper telephone lines and other hardware. Analog PBX is straightforward to operate once set up, but you cannot easily expand it to accommodate business growth due to the for additional physical lines and equipment. It also lacks modern functionalities.

On-Premises

On-premise PBX systems utilize your business’ internal networks and are the next step up from traditional or analog. While traditional PBXs use analog technology, on-premise IP PBXs utilize Voice over Internet Protocol (VoIP) technology to manage calls over the internet. This type of system usually requires a significant investment upfront because of the equipment that needs installed, including servers and telephone lines. Despite this, the cost savings more than make up for it in the long run as they are easier to maintain and optimizes all aspects of communication.

utilize on premise pbx

Cloud or Hosted

In this model, the service provider hosts the PBX equipment off-site, allowing businesses to access advanced features without needing extensive on-premises hardware. Hosted PBX systems typically have lower upfront costs because they don’t require installation of expensive equipment.

Hybrid

Hybrid PBX systems combine existing PBX equipment with VoIP. In this scenario, if the traditional or VoIP server is not functional, the system switches over to another network. This feature is ideal for temporary locations or remote offices. The good thing about hybrid PBX’s adaptability is it can be upgraded to cloud-based PBX if necessary.

Factors to Consider When Choosing a PBX System

Choosing the right PBX system for your business is a critical decision that can impact your communication efficiency and overall productivity. Here are some key considerations to guide you in selecting the best PBX solution:

1. Business Size and Needs

First, assess your business size and needs. Determine how many users will need access to the system. You should also consider your company’s future growth. Do you plan on expanding? Choose a system that can easily be scaled to cater to new users and additional features. You should also evaluate your current telecommunications infrastructure and whether you can accommodate a new system.

2. Budget

Businesses, no matter what size or type, are concerned about cost and budget. On-premise PBX systems require a higher initial cost since you need to purchase the hardware and have it installed at your location. On the other hand, hosted PBX are typically more affordable since it’s operated over the internet and is managed by a third-party provider. You also need to consider ongoing costs for maintenance, updates, and license fees. Cloud-based telephony usually has lower maintenance costs because the provider maintains the system off-site.

3. Level of Control and Scalability

If you have an in-house IT team and prefer to have greater control over your system, on-premise is the better option. Businesses that handle a large volume of calls need more advanced features and capacity, so in this case, hosted PBX is the more realistic choice. Ensure that the system can adapt to changes in your business operations.

scaling business using PBX

4. Features

Identify which features are essential to keep your business running. For instance, do you need conference calling and compatibility with customer relationship management systems? Do you need remote access for employees working from home? Phone systems for small to medium businesses may offer basic features initially, but upgrades could be needed as the business evolves over time.

5. Ease of Use

When choosing PBX for business, it’s not enough to only think about what the system can do for you; convenience and user-friendliness should also be top of mind. A PBX system should be intuitive and easy to use, both for your IT team and for end users. This ensures that workflows are smooth and uncomplicated.

6. Security and Support

Ensure that the PBX system has robust security features to protect sensitive business data from potential threats. Consider how much support you will need from the vendor after installation. If your organization lacks technical expertise, work with a provider that offers after-service support.

PBX Solutions for Small and Medium-Sized Businesses

Each PBX type offers benefits and challenges that will impact your business’ operations and communications. How to choose a PBX system hinges on a thorough evaluation of these criteria to ensure you select the best fit for your company.

If you need expert guidance, we’re here to help. Kital offers a range of PBX solutions to meet the unique needs of small and medium-sized businesses. Whether you’re considering an on-premise or cloud-based PBX, our team is here to help you find the perfect system for your organization. Contact us today.

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