Migrating from traditional landlines and Public Switched Telephone Network (PSTN) to an efficient, cost-effective communication solution is a critical decision for businesses.
With choices ranging from On-Premise to Hosted PBX and Hybrid PBX, each option provides distinct advantages for each business’ requirements.
That’s why a Private Branch Exchange (PBX) can be an excellent solution for small businesses.
These systems are private telephone networks that deliver a variety of advanced features, such as extension dialing, call conferencing, call forwarding, voicemail-to-email, and customizable business hour settings.
When integrated with VoIP technology, PBX phone systems for business can process digital signals, allowing seamless call routing to any device.
Whether you’re a small business or a growing enterprise, choosing the right communication solution can boost productivity, cut expenses, and simplify operations.
In this article, we’ll guide you through the available options and help you choose the best PBX system, ensuring you make a well-informed decision that meets your specific needs.
Keep reading, but if you want to dive deeper, have a look at the webinar below, where we explain different PBX solutions and how they can match your business needs:
Choosing the best PBX business phone system for you
Before you choose the best business phone system, let’s explore each type of PBX:
- On-Premise PBX is a traditional solution, using on-site hardware, being a reliable but costly system.
- IP PBX is a VoIP-based solution that can be hosted on your own servers or private cloud, offering flexibility, advanced features, and internal control.
- Hosted PBX is a fully cloud-based phone system managed by a third party, offering scalability, ease of use, and lower upfront costs.
- Hybrid PBX combines legacy phone systems with VoIP capabilities, allowing you to use both analog and digital and IP-based phones.
Learn more about The two types of PBX Phone System you need to know.
When selecting a PBX phone system, it’s essential to evaluate your business’s unique needs, such as:
- Communications Budget
- Company Size
- IT Setup and Team
- Current Set up
- Features needed
- Future Needs
Now, let’s explore each of these factors:
Communications Budget
The company’s budget plays a significant role in determining the best PBX system a business can implement.
On-premises PBX systems often require a higher upfront investment in hardware and IT resources.
In contrast, cloud-based PBX systems typically operate on a subscription model, minimizing initial costs. Evaluate your budget to determine which option is better for your business.
RELATED: How much does VoIP cost for businesses?
Company Size
The size of your business will influence the type of PBX system you choose.
Companies that don’t need many phone lines, work under a remote setting and are on the smaller side of the scale might opt for cloud-based services because they offer more flexibility and are better for growth.
Bigger companies that have inside IT teams might opt for an on-premise system, since they can have full control over their business communications.
| Company Size | Recommended PBX | Key Benefits |
| Small Business | Cloud-Based PBX | Scalable, low maintenance |
| Large Enterprise | On-Premises PBX | Greater control, customizable |
IT Setup and Team
As mentioned above, IT infrastructure and team capabilities are critical factors to consider.
On-premises PBX systems require in-house IT expertise for setup and ongoing maintenance, while cloud-based systems are managed by the provider, reducing the burden on your internal team.
If you are a reseller, you can benefit from this topic by offering tailored services to small businesses. By helping them cut costs on IT teams and simplify setup, you can provide expert support following our tutorials.
Here’s an example of how to troubleshoot incoming calls when using VoIP.ms’ services:
Current Set up
Evaluate your existing infrastructure.
Do you already have the necessary hardware, or will you need to invest in new equipment? If significant investment is required, cloud-based PBX systems may be a better fit. You’ll only need to worry about having a good internet connection.
Cloud-based solutions require minimal hardware, making them ideal for businesses looking to avoid additional expenses.
Features needed
Which features does your business require? As mentioned earlier, common PBX features include call forwarding, auto attendants, and call recording.
Advanced features like voicemail-to-email or CRM integration are offered by VoIP-enabled systems. A good service provider will allow you to create a complete communication system with every functionality you need to grow in a hassle-free manner.
If you run a mostly remote company/team pay special attention on how to integrate mobile devices to your communications set-up—upfront, this means you will need a cloud-based system instead of an on-premise one.
RELATED: Get to know our 70+ features to create a tailored VoIP phone system!
Future Needs
Consider scalability when making your decision.
Cloud-based PBX systems are particularly flexible, allowing you to add users or features as your business evolves. On premises PBX, while robust, can be costly and challenging to scale, especially for small businesses with growth ambitions.
H2: Common PBX features for businesses
PBX phone systems for business come equipped with a variety of features designed to enhance communication, streamline operations, and improve customer service.
Some of the most essential features that can transform the way a business handles calls and interacts with customers are:
- Call Forwarding and Routing
- Auto Attendants
- Call Recording
Call Forwarding and Routing
Efficient call routing ensures that calls reach the right person or department, improving response times and customer satisfaction. PBX can convert an incoming call to a digital signal, routing incoming calls to any device – that means, your business never misses an important call!
This feature is also invaluable when dealing with high call volume and business seasonality.
Auto Attendants
Auto attendants automatically answer all calls, providing a professional first impression by greeting callers and directing them to the appropriate extension or department.
Don’t confuse this with an IVR (Digital Receptionist) function. In this case, the automations and interactions with customers are more advanced. Think of it like this: an auto attendant is like a virtual receptionist, while an IVR mimics a customer support professional.
Call Recording
A must-have for call centers. Call recording helps businesses with key information by recording phone calls from customers, which then can be useful for training staff, compliance, and quality assurance.
It also improves customer service by enabling the review of interactions, identification of improvement areas, and development of strategies, service plans, and products tailored to customer needs.
If you want to go a step further here, you can always implement Call Transcription features, that turns calls into text you can then use for documentation and easy storage.
RELATED: What is an IP Phone?
Benefits of a PBX phone system for small business
Whether you’re looking to scale your operations, enhance team productivity, or offer customers a better service, a PBX system provides the flexibility and tools needed to improve your small business.
The key benefits that make PBX systems a smart choice are:
- Scalability
- Unified Communications
- Cost Savings
- Flexibility
Scalability
PBX systems, especially cloud-based ones, allow businesses to scale up or down as needed, making them ideal for growing companies.
Unlike traditional and analog phone services that require expensive hardware upgrades, a PBX lets you:
- Add or remove lines instantly
- Expand to new locations
- Integrate new features
Unified Communications
By integrating voice, video, and messaging into a single platform, PBX phone systems optimize communication and collaboration for small businesses. Benefits include:
- Centralized tools: Access voice calls, instant messaging, and file sharing from a single interface.
- Improved collaboration: Teams connect effortlessly, whether in-office or doing remote work.
- Enhanced customer experience: Route calls to the right department instantly.
Cost Savings
By reducing hardware costs and offering affordable subscription models, PBX systems help businesses save on communication expenses when compared to traditional landlines:
- Lower upfront costs: Cloud-based PBX eliminates expensive hardware and maintenance, usually a necessity when it comes to traditional telephony.
- Predictable pricing: Pay-As-You-Go VoIP providers avoid unexpected charges.
- Minimal IT maintenance: Providers handle updates, security, and troubleshooting.
Look out for international calls: for remote teams or globally present businesses, this is where you can find the biggest cost differences when compared with traditional telephony providers.
RELATED: On-Premise vs Hosted VoIP: What’s the best choice for your company?
Flexibility
With features like remote access and mobile app integration, PBX systems enable employees to stay connected from anywhere, providing:
- Customizable features: Call routing, voicemail-to-email, and auto-attendants to your workflow.
Another bonus: many cloud-based PBX systems offers integrations with software like Microsoft Teams, so you can have video conferencing, softphone capabilities and internal messaging all in one. Check out our Teams Connector to learn more.
The ideal small business phone system
Choosing the right PBX business phone system depends on factors such as budget, company size, IT capabilities, and feature requirements.
Whether you opt for an on-premises or cloud-based solution, a PBX system can enhance communication, improve customer service, and support business growth.
By evaluating these factors and leveraging the expertise of resellers, small businesses can select the ideal PBX phone system to meet their needs and drive their business forward.
Are you a reseller just getting into the VoIP market? Learn more about our Reseller Program.
FAQ for Business Phone System PBX
Don’t see a question you need answered? Ask it directly to our Sales Team!
1. What is PBX?
PBX stands for Private Branch Exchange, a private telephone network for business to manage internal and external communications efficiently.
2. What are the three main types of PBX systems?
There are several main types of PBX systems, each one with its own advantages, depending on your business needs. They are:
- On-Premise PBX: Uses physical hardware (like desk phones and servers) and standard telephone lines.
- Hybrid PBX: Combines legacy telephony (analog/digital) with VoIP functionality.
- Hosted PBX: A cloud-based solution managed entirely by a provider (can include business phone numbers and features for scalability).
For a detailed breakdown, check out our blog post: What You Need to Know About PBX.
3. PBX vs. VoIP: what’s the difference?
PBX refers to the phone system itself, while VoIP (Voice over Internet Protocol) is the technology that enables calls over the internet.
Integrated PBX systems and VoIP deliver advanced features for small businesses, and allows more flexibility, room to scale and a unified communications system