With the advancement of technology, we are left with far too many options. As a result, businesses often struggle to choose between these two— traditional Phone System and IP PBX Solutions. An IP PBX (Internet Protocol Private Branch Exchange) is a phone system that uses the internet to route calls rather than traditional phone lines.
Traditionally, Phone System was enabled using copper-wired telephone networks in offices that served the purpose of internal communication. This traditional system of communication through landlines started to become outdated when advanced technology was introduced into PBX systems.
A business phone system is key to the smooth and efficient functioning of any business. Today’s market is saturated with plenty of options when it comes to business phone systems, with each claiming to offer the best features.
Can a traditional phone system help you run your business? Or an IP PBX solution would be the best option?
A business investing in a Unified communications phone system will often find itself stuck when choosing between a Traditional Phone System or an IP PBX setup.
Traditional Phone Systems
A Traditional Phone System refers to a business-grade telephone network that provides an organization with all the voice-related functions to perform its various daily activities, from internal communication to handling customer service.
However, given that this phone system runs on analog phone lines, it cannot be used to link residential phones or cell phones to answer calls. Some of the key features of a traditional Phone system include call routing, extension dialing, music on hold, and customer waiting queues, among others.
IP PBX Solution Systems
Unlike a traditional phone system, an IP telephony or a PBX VoIP system is one that doesn’t involve analog phone lines to connect phones in an organization. It functions via the Internet and can be accessed via a graphical interface or dashboard, which also makes it easier for administrators to manage.
Further, the application programming interface (API) offered with an IP PBX solution also allows for it to be integrated with other essential programs and applications that a business may use. Key features of IP PBX system setup include call conferencing, voice messaging, reports and analytics, remote functionality, and more.
Key Differences Between Traditional Phone System and IP PBX Solution
Both Traditional and IP PBX Setup have advantages and disadvantages. We’ve highlighted seven key distinctions to help you choose the proper voice communication technology.
Initial Investment
When you install a traditional telephone system, there are high costs involved. This would include installing a KSU, telephone handsets, manually connecting phone lines of employees, and more. All of these installations are hardware-based and may also take up a substantial amount of time. This often makes PBX installations costly.
Here’s a breakdown of where you will need to invest:
- Analog phones
- On-premise PBX hardware
- Installation by an experienced team
- Regular maintenance
On the other hand, although an IP PBX Solution does need some initial investment and equipment, it is much less expensive. Since most of its work is done through software and the internet, there is not much to do physically. The investment is only needed for an appropriate modem, good internet connection, and workstation applications.
Relocation
If you plan to relocate your office premises, you will have to carry the PBX boxes to the new office and reinstall it there. This means “downtime” for your business, and your services will be affected during these procedures.
In IP-PBX solutions, all you need to do is carry the handsets and gateway to your new office premises, plug them, and they are up and running within seconds. No engineers and no boxes to be fixed on the walls, thereby minimizing downtime.
Call Quality
A traditional phone’s connection clarity is largely determined by its hardware, which includes the KSU, copper wires, and telephone handsets. If the system is properly configured and consists of good-quality devices, the calls will be of high quality. With an IP PBX Solution, the situation becomes a little more complicated. Several factors can contribute to poor audio quality.
For example, a slow or unstable internet connection can ruin its efficiency and functionality. Calls may also lag if the network is not properly configured. Therefore, internet calling is often considered undesirable by those who don’t have access to a fast internet connection. However, if your internet is stable, an IP PBX Solution can offer much higher call quality than a traditional phone system.
Remote Work
As more and more companies hire remote workers, choosing a system that supports work from home is crucial. However, most of the traditional phone solutions have failed to make remote work seamless. You cannot just spend hundreds of dollars setting up a phone system in each employee’s home.
However, with the IP-PBX system, just give them a handset and ensure they have a high-speed internet connection. They can even connect with their colleagues to discuss work-related stuff. Besides, customers won’t be able to distinguish whether your agents are based in the home or office.
Scalability
When you’re planning on scaling your business, establishing communication systems is an important factor to consider. Scaling is never that big of an issue with IP PBX. Several branches or workplaces can use the same IP plan. The system would only require you to renew or upgrade your package, with everything being done smoothly using software. However, it is worth mentioning that the traditional PBX system will require you to buy new equipment and install them, again costing you thousands of dollars.
In the case of IP-PBX systems, all you need to do is decide the number of lines you want, get pre-configured handsets, and connect them to your system. They will be a part of your existing communication system under the same plan and features. However, this process isn’t as easy with a PBX call center phone system. You’ll need to add more phone lines as well as new gear. Further, an entirely new PBX system would need to be installed for new workplaces.
Features and Functionalities
Since traditional Phone systems are installed on your premise, adding new functionalities can be a pain. Phone solution providers don’t add new features often, and when they do, installing them would mean downtime for your services.
On the other hand, the IP-PBX solution is already equipped with advanced features like auto-attendant, voicemails, call distribution, etc. And since it runs on the internet, it is easy to launch and install new functionalities. Moreover, the update happens mostly during off-hours, so it doesn’t affect your services.
Resilience
Technical issues are always a consideration at business places relying on technology. If a system has an issue, traditional Phone system recovery will be far costlier when compared to repairs conducted on IP PBX solution systems. If you have a PBX installed, you will need a skilled IT team to maintain it and troubleshoot issues at all times. You will be responsible for handling malfunctions because you own the equipment.
An outsourced or in-house expert would have to be on beck and call constantly, or this could lead to significant downtime. In contrast, once you install an IP PBX system, your vendor generally takes care of maintenance and repair. Moreover, IP telephony is not as complicated or hardware-intensive; you will be able to manage it even if your company does not have an advanced IT department.
Mobile Workforce
In a post-COVID world, mobile workforces are extremely important for an organization’s functioning. IP users can make calls from their laptops or phones. Customer care and sales representatives can handle the calls even when outside the office. IP PBX Solution, therefore, enables remote communication with ease.
Traditional Phone System, on the other hand, uses an integrated telephone network. Users cannot use any phone or gadget outside the office because it is to be physically connected. This makes it difficult for employees to work remotely.
Technology That Adheres To Industry Standards
Traditional Phone systems are generally built on-premise as per the distinct needs of individual organizations. This means they may not adhere to industry standards, making them vulnerable to operational and legal issues. Further, since technology and guidelines are constantly updating, it’s hard to keep up and continually make physical changes to your on-premise PBX systems.
In contrast, IP PBX solution systems adhere to every important compliance standard (like HIPAA), ensuring robust regulation, defined SLAs from the vendor’s side, maximum data security, and zero legal bottlenecks. They are also easier to customize or modify when new issues come up or if organizations decide to scale.
Technologically, you can add all new equipment that can be connected over the internet to your IP telephony. Earphones, AirPods, smartphones, tablets – everything is easily set in place. As a result, you can easily stay up to date with an IP PBX Solution.
Cybersecurity Concerns
In terms of security, traditional Phone systems score well. Since everything is offline and connected by wires, the risk of a data breach is low to nil. Exposure of private communication networks to the internet always has security risks. This is simply because the internet is available to everyone and can be hacked into.
To tackle cybersecurity concerns, companies install firewalls on their systems. However, the quality and efficacy of your firewalls are determined by your service provider and your budget. Organizations with a higher budget can use safer firewalls, while others can’t.
Conclusion
Finding the right phone system is one of your business’s most critical tasks. Both Traditional and IP PBX Solutions are systems that allow a private communication network within a business. However, there are stark differences in their approaches and features. These differences include the degree of scalability, cost of installation and maintenance, use of the internet, and more.
Though both systems have their own sets of limitations, IP telephony setup is more appropriate and flexible in the digital age. It is accessible, cost-effective, and capable of meeting industry standards. Most businesses are moving away from the traditional PBX telephone systems.
Are you looking for a reliable business phone system for your business?
Dialerking Technology is a leading cloud based phone system solution provider trusted by 10,000+ businesses worldwide. We provide a complete package of IP PBX Solution which helps corporates and small businesses for more cost-effective options. You can make use of multi-tenant IP PBX Telephone sets, a PC with Softphone software (Web phone, Dialer), or Analog telephones (via media hubs), Wireless Phone, ISDN, or Key Phones to access the services. Check out our services here. Book your free demo and find out how we can empower your sales and customer service teams.
