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The ABCs of PBX Systems
by by Jami J. Rodgers, Vendor Guru Columnist

As one of the most common systems that carry both in-house and outbound telephone traffic, a PBX system is a privately owned telephone exchange. A PBX system allows businesses to cut costs because calls are routed internally and not through an outside telephone company. With PBX, the circuits are switched inside the company so you can create extensions to a number of devices, including fax machines, and a cascading number of telephone extensions.

A PBX alternative includes the integration of Voice over Internet Protocol (VoIP). The alternative is often software-based to limit the amount of hardware. With this PBX alternative, it's not necessary to pay for separate phone lines for each extension. Calls are routed to a specific extension via your broadband connection.


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Hosted PBX versus Standard PBX Systems
A hosted PBX system does not require hardware or software on site, which eliminates start-up and support costs. With hosted PBX, a provider maintains the service. All telephone calls are received from the hosted PBX via the public telephone network to an individual extension. Typically, any administrative tasks are done via a Web-based system for a hosted PBX system. Hosted PBX systems are scalable and diminish the need to have on-site hardware at your location--both advantages when you consider a PBX system to meet your needs.

PBX Systems Are Within Reach
Most emerging businesses feel that a PBX is not within reach financially. In reality, PBX systems deliver the best value to your firm and are well worth the initial investment. A hosted PBX is a logical choice if your company has employees distributed in different locations and you want to limit start-up costs. As an alternative, a standard PBX works best for your firm if all employees are centrally located and you want to keep the cost of inbound calls low. Whichever system you choose, PBX can make a difference to the efficiency and reliability of your communications infrastructure.

Sources
Call Center Magazine
U.S. Federal Communications Commission

About the Author
Jami J. Rodgers works in acquisition management for the federal sector in Washington, D.C. Jami holds a B.S. in Spanish with a business option and an international studies minor from The Pennsylvania State University.