PABX: How Important is it to Run Your Business?

PABX: How Important is it to Run Your Business?

PABX (Private Automated Branch eXchange) is a communication switching system that enables concentration of official central lines and intercommunication between large numbers of lines within the organization.

PABX has many advantages over the PSTN (Public Switched Telephone Network). There is no visible disadvantage to this system.

Currently many businesses start to switch from their traditional PSTN to PABX system, mainly due to the fact that they understand the cost benefits that PABX system can give. But only the cost effectiveness of PABX cannot drive all business to switch, in addition to cost effectiveness; flexibility, features and reliability of the system drives them to switch.

There are many types of PABX system.

Traditional PABX system was already installed in many organizations and is soon becoming outdated in all of them. This is mainly due to the fact that the traditional PABX system includes a large start-up cost for equipment’s and network setup. Entire system is setup within the organization and so the organization needs a devoted IT department to handle the issues connected to the system.

Due to the drawbacks with traditional PABX system the IP PABX system is getting its popularity, mainly due to the fact that this system uses VoIP. This system includes similar start-up cost as in traditional system, but since this uses internet as the transmission medium the cost savings via telephone bills is more compared to traditional system. Another advantage of VoIP PABX system is that this can be used from small home business solutions to an ultra large organization which requires thousands of connections.

Third type of PABX system is Hosted system, which incorporates all the advantages of first two types, but with the larger cost saving. Cost saving is associated with the fact that the system is completely off-site in VoIP providers place, and business has to pay a low fee to the provider to maintain the system. Yet the business can use all the features and flexibility of IP PABX system. Many businesses now tend to incline towards this system mainly due to the advantages and cost savings that it poses for the business.

Experts also feel that Hosted PABX will rule the communication world for at least next 5 years.

Last and the latest type of PABX system is the Virtual PABX. Virtual PABX is not as attractive as Hosted system but it incurs much lower cost to business, but also provides lesser features when compared to Hosted system. Businesses which need to do more external calls do not prefer this system.

In the current market situation, more businesses tend to decide on switching to Hosted PABX system due to cost and feature advantages that this system poses.

Here are few benefits that the businesses get from switching to PABX system

  • Cost effectiveness
  • Central number for the organization, through which all the employees can be connected. Allows internal calls via extension numbers. Also allows connection of individual employees from external world through central number and extension. Streamlines the calling facility in organization for the customers.
  • Hold features and conference calls facilities. Option to play music while putting the callers on hold. This can definitely please the callers and not let them annoy over waiting in the call. This will definitely help the business in not losing a customer due to bad experience with the call.
  • If customer know the extension of the department that they are looking for then it saves lot of time for them in getting the help. This will definitely leave the customer with a smiling face.
  • Voice message facility in PABX allows customer to leave their message even if they cannot contact the required person.
  • Conference calling facility helps the business a lot by connecting to various customers and departments simultaneously and to arrive at unanimous decisions.
  • Real time call records and system management to business is possible. Hence provides business with data and they can plan accordingly for future growth of organization.
Neil Rule

Neil Rule

Technical Director at Above Infranet Soltions Inc.
An IT systems integration consultant and network infrastructure adviser in the Philippines.
Neil Rule
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