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Wednesday, 18 May 2022 / Published in TENIOS Blog

What is a PBX / Cloud PBX? How does it work?

What is a PBX

18.05.2022 |

In the past, ISDN connections dominated the telecommunications landscape, but in the course of the switch to All-IP, the virtual PBX – also known as Cloud PBX – is gaining ground. It not only offers a wide range of functions, but is also highly cost-efficient.

 

But what exactly is a PBX? How does a PBX work, what functions does it offer and what are the advantages for companies? We’ll tell you.

 

1. What is a PBX?
2. How does a PBX work?
3. What are the advantages of VoIP-PBX?
4. Cloud PBX provider

 

1. What is a PBX?

The name PBX stands for Private Branch Exchange and describes an enterprise telephone system. This system defines a private network consisting of several terminals such as telephones or fax machines, which is connected to the public telephone network (PSTN). This enables both internal communication within the company’s own network and public communication. Within the private telephone network of the company or public authority, direct dialing and connections to extensions can thus be made between each other free of charge.

 

PBX model

 

2. How does a PBX work?

A PBX acts as a link between a private and public switched telephone network (PSTN). Previously, PBX systems used analog technology or ISDN for this purpose, which enabled the connections of several parallel lines to the PSTN. With the shutdown of ISDN at the end of 2018, the connections were converted to Voice over IP – VoIP for short. VoIP technology is software-based and enables telephony via the Internet. The Session Initiation Protocol – in short SIP protocol – is used, which is responsible for establishing and terminating connections. A physical connection between the individual devices is therefore no longer necessary.

On Premise & Cloud PBX

The PBX can be hosted either locally or in the cloud. Local PBX systems are also named On-Premise or In-House PBX and require the operation of an own hardware. A Cloud PBX is a virtual PBX that does not require any hardware: A broadband Internet connection with about 100 kbit/s per voice channel is sufficient for a reliable connection and good voice quality.

Features of a PBX

The standard functions of a PBX are, for example, call swapping, holding and forwarding as well as a call waiting and redial function. A cloud-based PBX offers much more: Cloud PBX systems today often offer over 100 functions including call transfer, waiting loops, IVR services, ACD functionality, fax receiving/sending, real-time statistics, and much more.

 

Get more information

 

3. What are the advantages of VoIP telephone systems?

Telephone systems offer a wide range of advantages. One PBX variant scores especially well: the Cloud PBX. What makes the cloud or hosted PBX so attractive? We have summarized the most important facts for you:

  • No acquisition costs

    A hosted PBX offers a significant cost benefit: In contrast to the local PBX, no hardware is required for the virtual telephone system and expensive acquisition costs are eliminated. There is also no need to purchase IP phones: Softphones act like conventional telephones and enable calls to be made directly via the PC, resulting in additional savings options.

  • No maintenance costs

    Since the hardware is not located in the company itself but at the VoIP provider, there are also no maintenance costs for the PBX technology, which makes the use of the Cloud PBX even more cost-efficient. The responsibility for maintenance and updating remains with the provider.

  • Easy scalability 

    A virtual telephone system can be adapted very easily to changing circumstances. The number of extensions does not have to be fixed from the outset, but can be scaled at any time without effort. All it takes is a few clicks in the VoIP provider’s web portal.

  • Flexible location connection

    Whether for connecting employees in the home office or the various company sites: subscribers can be linked to the PBX from any location and continue to use a uniform telephone number. The only prerequisite is the availability of an Internet connection with a sufficient bandwidth.

  • Simple handling without expert know-how

    Cloud-based telephone systems can be easily controlled online. The customer can make settings independently at any time without having to rely on a technical expert. The user interfaces on the web are mostly intuitive and self-explanatory and do not require any technical expert knowledge.

  • High reliability

    By using several redundant data centers, reputable Cloud PBX providers offer their customers almost 100% fail-safety. If the server at one location should fail, the telephone system is secured at all times via another data center.

 

 

4. Cloud PBX provider

You want to set up a virtual PBX in your company and are looking for the right provider? With the TENIOS Cloud PBX you are making the best choice.

The advantages of our Cloud PBX at a glance:

  • Over 100 PBX functions
  • Flexible connection of additional locations
  • Scalability: add extensions at any time
  • Hosted in our geo-redundant data centers in Germany
  • Highest data and failover security
  • Intuitive & self-explanatory user portal
  • Extensive documentation & support
  • Attractive pay-as-you-go model
  • monthly cancellable

 

 

Switch to All-IP with TENIOS:

Apply for the TENIOS Cloud PBX today and test all the features of our telephone system 30 days free of charge.

Start with TENIOS

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