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What is IP PBX? VoIP Server Guide & how IP PABX works

So, you've decided to add a shiny new VoIP phone system to your business. Or maybe you're still unsure about VoIP. After all, you've probably heard the phrase IP PABX more than a few times.

Let's take a look at the role VoIP and IP PABX play in your business.

IPPABX installationWhat is IP PABX?

IP = Internet Protocol
PABX = Private Automatic Branch Exchange Private (closed) Branch Exchange

IP PABX is a central system that switches and routes calls between telephone networks and VoIP users. This particular system assesses the best way to route multiple calls simultaneously. Efficiency allows business users to share limited resources, such as a number of external telephone lines.

As you learn about IP PABX systems, you may see the terms VoIP PABX, IP PABX server, or VoIP server. These things are basically the same as IP PABX. The terms are used interchangeably.

Let's take a closer look at PABX

Think of a PABX as the modern version of a switchboard operator. You've seen the grainy old photos. A well-dressed woman was sitting in front of a large circuit board, transferring calls by plugging wires into different sockets.

Switchboards first appeared in the late 1800s, not long after the telephone itself was invented. That technology (can we even call it technology?) persists for a long time.

Old school PABX imageIn those days, everyone in the office had a telephone line. When an external call comes in, the operator answers and moves the caller to your line.

Same with internal calls. You call the operator and get connected to your colleague. Both you and your colleagues use actual phone lines when on calls. Not only are you tying up two phone lines, your company may be paying local toll fees for both lines.

https://www.high-endrolex.com/6

Fast forward to the 1970s. Call switching is done automatically. It is cheaper than the manual way of doing things and the business is more efficient. Also, the telephone operator lady in the blurry photo lost her job.

Antique old PBXMore companies are starting to invest in business phone systems. Technology gets better and better. By the 1990s, automated telephone systems had become standard in the business world. This was around the same time people in the industry started using the term “PABX”.

Technically

Now, PABX systems have been around for a long time. We're all used to interacting with them on business calls, even if we don't know it's happening. Ever had to press 1 to speak to a representative or press 2 to address us? Yes. That's PABX.

These are the basic functions at the core of what every PABX does:

Switch between users, connect calls internally and externally.

Ensure calls stay connected.

Ends a call when the user hangs up, freeing up resources.

Record and track data and metrics related to calls.

What else does a PABX OR IP PABX do?

On top of the core technical functions of a PABX OR IP PABX, there are also some standard features that come with it.

Specify the central telephone number. All calls for all departments and all personnel – One number.

Set up Automatic Call Distribution (ACD's.) Make your call center run efficiently by distributing calls to your representatives according to your business needs.

Carry out the process of answering calls automatically. But do it in a way that allows callers to contact the people they need painlessly.

Customize the greeting your callers hear.

Manage how calls are handled at the system level.

Customize your caller waiting experience. Add hold music or include promotional messages, all tuned to your specifications.

Set up a robust voicemail system. Never miss a message from a customer or client.

Transfer calls seamlessly and easily between users.

Ippabx cable installationPABX OR traditional PABX vs. IP PABX

Now you know what a PABX OR traditional PABX is and what it does. But what is IP PABX OR IP PABX?

Here's the short answer: IP PABX OR IP PABX is an enhanced PABX that supports VoIP systems.

Here's a slightly longer answer: Traditional PABX systems consist of hardware. IP PABX systems are mostly software. IP PABX telephone systems are built to work with packet-switched networks. This means they can handle voice calls, video calls, data, and can connect with applications like Outlook. All of these things make a great VoIP system.

VOIP

In case you forgot about VoIP, here's a reminder:

VoIP (Voice over Internet Protocol) is a technology that allows users to make calls using the internet instead of old-school phone lines.

An IP PABX acts as a kind of gatekeeper for a VoIP phone system. It determines how to handle calls and where to go. IP IP PABX enables unified communications.

Wait, what is unified communications?

On the surface, unified communications is simply a business communicating across its entire organization. This can include voice calls, web and video conferencing, SMS and chat, data sharing, and extension mobility. This list goes on and on.

If you dig deeper, you will learn that unified communications is actually an enterprise communications network within an organization or business.

Best of all, unified communications allows Agus and Budi to chat via instant messaging. Then Agus sent the data file to Budi in an instant message. Joe had a question, so he switched from instant messaging to video chat. Now they decided to invite Bambang into the conversation. Etc.

Unified communications allows users to communicate and collaborate seamlessly using different media on the same network.

Internet network data cableSo how does an IP PABX work?

Each user on a VoIP network is assigned an identifier that is unique to them. This identifier, usually structured like an email address, is the user's SIP address. IP PABX maintains a list of all users and their SIP addresses.

When you make a call on a VoIP phone, the IP PABX determines whether it is an internal or external call.

If it's an internal call, the PABX sends your call to the SIP address of the person you're calling. Since you're both using VoIP, your calls stay on the network and there's no reason to access an outside phone line.

If it is an external call, the PABX will send your call to the VoIP gateway or VoIP service provider which is then sent to the external phone line.

But it doesn't stop there. While it plays air traffic controller for your business phone calls, PABX does some other cool things. It shoots instant messages back and forth between users on the network. It allows users to collaborate on conference calls.

And it sends voice messages to your email (which makes it hard to lie about missing those important messages.)

What's so great about that?

There are many great things about using an IP PABX. I won't bore you with them all, but here are some of my favorites.

Installation is very easy. It's software. It is installed like any other software.

Management is very easy. IP PABX has a web-based interface that makes adding users or changing settings very simple.

Powerful reporting. A PABX stores all the little details you need. You know you want to see this weekend's call report.

Maintenance is simple. No need to call the guy from the phone company. Moving tables? Pick up your VoIP phone and plug it in somewhere else.

Scaling is easy. VoIP ip PABX allows you to scale your business quickly and painlessly.

Economical. Cost savings are everywhere, including reducing or completely eliminating long-distance bills.

Types of IP PABX

Your PABX ip can be on-premise (tech people call it “on-premise”) or hosted. Both work in a similar way. Both have tremendous advantages, but in most cases, host is the better option.

Local IP PABX

As the name suggests, an on-premise IP PABX is an in-house system. It's right there, on your site. In your building.

You've probably seen the setup before. It's in a locked cupboard or small room, with a server and lots of cables. Sometimes, there are restless IT people hanging around.

How to spread it?

Before implementing any on-premises solutions, you will purchase all necessary hardware. This typically includes servers, equipment, and interface equipment. The entire system is built at your physical location.

Your company's IT team will have 100% control of the system, but they will also assume all responsibility for updates, maintenance, and troubleshooting.

How much does it cost?

There are large upfront costs and lower long-term costs with on-premises systems.

Upfront, you buy hardware and supplies. You also waste IT energy during implementation.

In the long run, you pay labor costs for your IT team to maintain the system.

And there's one other cost you may not have considered – Real estate. On-premises systems take up space. In some cases, lots of space. Those servers, server cabinets, and cables need a place to live. If you have a lot of space, this may not be a concern. But if you are renting office space in downtown Jakarta for IDR 300-500.000 per square meter, this may be something to worry about.

The main thing is

For on-premise PABX, there are a few things you can rely on.

First and foremost, VoIP ip PABX systems provide more features than traditional analog systems. Scalability is greatly improved. Some businesses even report a 49% increase in productivity when using unified communications systems.

It's no secret, start-up costs for on-premise systems can be daunting. For many businesses, it takes years to break even on the investment.

There are minimal recurring costs, such as a monthly subscription fee. However, maintenance costs can be expensive in terms of labor. When it's time for updates or troubleshooting, your on-site systems will need an IT professional on-site.

PBX / PABX that can be rented on the internet cloud

A hosted PABX, sometimes called a cloud IP PABX, is mostly handled by an off-site service provider. You don't have to worry about much physical equipment, other than a few phones and a router.

You won't have as much control over your system because it's managed elsewhere. But this is not necessarily a bad thing. You and your employees can spend time growing your business while someone else runs your phone system.

How to spread it?

You could say that as easy as pressing a button.

Service providers work with you to understand your needs and how best to set up your system. They get SIP addresses for all your users registered in the system. They make sure any VoIP phone you may have is configured correctly. Then deployment occurs in the service provider's data center. They really take care of all the grunt work.

Believe it or not, a hosted VoIP server can be deployed in just one day with minimal disruption to your business.

If they can deploy that fast, imagine how much faster than they can scale your services at the last minute.

How much does it cost?

The upfront costs associated with a cloud-based PABX are small. You'll need to purchase VoIP devices for your staff if you want them to have physical phones. Otherwise, they need a headset to use with their softphone. Just that.

In the long run, you are looking for a low recurring subscription fee for the service.

Ongoing maintenance, upgrades and troubleshooting are handled by the service provider. You don't need to waste your IT energy.

The main thing is

As a business grows and needs more flexibility, there are things a cloud IP PABX can do to help.

Most importantly, a hosted ip PABX offers all the sweet perks of a voice over internet protocol phone system. If you can't remember why VoIP is so amazing, let me remind you with a quick list.

Big money savings

Improved portability and accessibility

Excellent call quality

Easy scalability

Video calling, conferencing and data collaboration

There's something to be said about a hosted solution for all your technology needs. When your call center has problems in the middle of the night, guess who they call? Not you. The service provider will troubleshoot and repair what is broken.

Getting started with a cloud-based IP PABX server is cheap. You may be on the hook for some phones but not many others.

One of the best parts of a hosted ip PABX is your access to new and improved features. Your VoIP service provider has more resources than a single business, so they know about the next best thing to hit the market. And they took care of installing those fancy new bells and whistles.

IP PBX / Local IP PABX vs. Local IP PBX IP PBX / IP PABX CLOUD

If all the acronyms, geek-speak and feature lists are giving you a headache, here's a neat little chart that might make things simpler.

PABX and IPPABX comparison table

Where do we go from here?

It's pretty clear, a VoIP PBX / ip PABX phone system is the way to go. Most people in business today would agree with me. The decision that remains now is, on-premise or cloud based?

Let's look again at our practical graph. One of these solutions looks a little better than the other, am I right?

OK, to be completely fair, here's another chart. This one is a little more specific about the types of businesses that might choose either option.

PABX and Cloud PABX comparison table

There are organizations that may gain more benefits from on-premise systems than cloud solutions. But given the initial and ongoing requirements, these will be larger, IT-centric companies with time, space, money, and manpower dedicated to their phone systems.

For everyone else, there is a hosted PABX.

This is a lot to think about

Yes it is. Artatel wants to help. Our favorite thing to do is answer your questions. We can explain your options and how they will impact your business.

Then we will customize the right solution for you.

We love solving problems and helping businesses grow. Reach out and learn how you can take your business communications to the next level.

Wait, you're not sold on VoIP yet?

Sorry, I'm too hasty. OK, you're not sure about VoIP in general. There are other significant advantages that we haven't talked about much.

Do you think those people could work remotely without VoIP technology? Impossible .

Throw away your old ideas about working remotely. I know what you're thinking – Housewives do telemarketing on the landline while the kids nap. Forget it.

“But I already know my workers can use their VoIP phones from home.” Yes, they can. And did you know that 91% of people who work from home feel they are more productive than when they were in the office? But I digress.

Have you ever considered how the power of VoIP could change the way you recruit and hire?

In the past, your talent pool was within a 50-mile radius around your building. But now, with the collaborative power of VoIP, your talent pool is basically… everywhere.

Leverage the tools available with VoIP systems to build the best team. And stay in touch with them through voice and video calls, instant messaging, and whiteboard collaboration.

VoIP is here to stay. It is estimated that there will be nearly 205 billion corporate VoIP users by 2020. 205 billion people cannot be wrong about the superiority of VoIP PABX services.

OK, you believe VoIP is the best choice

And you are almost convinced that a cloud-based VoIP PABX is what you need. Great! Now, contact Artatel .

We would like to tell you about the flexibility and options available with IP PABX systems. We are confident we can meet the needs of any business, from small companies to large corporations.

Artatel provides exceptional service. We don’t just brag; our clients tell us we do a great job. Positive reviews from our customers motivate us to work harder. We are dedicated to helping businesses improve their efficiency and profitability. Let us help you.

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