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Business communication is an integral part of businesses irrespective of their scale or size. However, in the past decade, the tools to achieve business communication have evolved from physical telephone lines to digital calling solutions called Voice Over Internet Protocol (VoIP). Big bulky telephones bound to a location by RJ11 telephone lines are replaced by VoIP phones that can be physical or software-based. When opting for virtual VoIP systems, businesses can enjoy business communications with zero wiring, additional hardware, or additional staffing.

With a reliable and decent bandwidth internet connection paired with a PBX server, VoIP calling can be up and running in minimal set-up time. While internet connections are subjective and prone to differ for individual regions, PBX servers (depending on the type) can be a constant factor in a VoIP system. Hence, having solid knowledge about PBX servers is crucial when selecting a VoIP service provider for your business.

What is a PBX server?

PBX server can be considered as a digital counterpart of the Public Switched Telephone Network (PSTN) or the telephone exchange. The acronym PBX phone system stands for ‘Private Branch eXchange phone system. Any call placed using the VoIP dialer is transcoded into data packets and passed to the PBX server, which uses the internet to transmit the packets to the intended caller. On the other end, a PBX server receives the data packets and forwards them to the IP phone or software-based softphone (depending on the infrastructure and business needs).

In addition to being a digital telephone exchange, a PBX system is also a cost-effective solution that grants exceptional portability and additional advanced VoIP features such as Time Condition, IVR, Ring Group, Call Forwarding, Auto-attending, IVR, Video Conferencing, etc. In fact, these advanced features make PBX the most sought-after business phone solution that businesses favor. 

How does PBX work?

The IP PBX corporate phone system allows users to make and receive calls over the internet. Analog speech signals are converted to digital data throughout this procedure. The data packets are transformed before being sent to the VoIP service provider, which manages call initiation and termination.

IP PBX systems use Session Initiation Protocol (SIP) trunking to provide numerous phone lines or add extra users. Users obtain special login information so they may access their accounts and make or receive calls from other users. Users can also place and receive calls from numbers outside the network, thanks to SIP trunking. Users can connect desktops, specialized VoIP phone hardware, or softphones to the network using SIP trunking.

Both internal and external corporate communication may be conducted with the IP PBX business phone system. Whether your PBX phone system needs to transmit data through the Public Switched Telephone Network (PSTN) or not depends on the nature of the communication.

Capabilities of a PBX system

As mentioned earlier, a robust PBX server can manage much more than transmitting and receiving VoIP calls. Here is a breakdown of the different features capable of an IP PBX phone system.


A powered-down version of an IVR, the auto-attendant greets callers and transfers the calls to respective departments without relying on a human receptionist. The capacity to redirect calls to locations outside the firm, such as mobile phones, VoIP virtual phones, and other IVR systems, is a feature of advanced auto-attendants.


Intelligent Voice Response (IVR) is a boon for businesses facing high daily call volume. The automated response can be a nested menu that presents the callers with choices that they can select using a keypad or voice response. This allows the callers to find answers and manage simple tasks themselves, reducing the hold times and freeing up the agents to tackle only the problematic and challenging caller requests.

3rd Party Business Integrations

Businesses can not run their entire operations using a single app or software. On the contrary,  businesses need to use different tools and need these tools to provide data flow between them to create an efficient system and a centralized data repository. Thankfully, a reliable PBX from a trusted VoIP development company will support business tool integration or custom integration capabilities.

Video conferencing Support

The ‘V’ in VoIP applies to both voice and video. Therefore, depending on the infrastructure, a good PBX server also supports video calling and conferencing capabilities. Moreover, the PBX server also supports additional video conferencing features such as screen sharing, unlimited recording, HD video, and so on.


Voicemail is an integral part of VoIP calling as it allows callers to record their requirements in case of agent unavailability. This allows businesses to catch business opportunities that may have been lost. Taking voicemails to the next level, an IP PBX can send an email notification whenever a voicemail is left on the server, along with the recording as an audio file. The call transcript can also be sent as an email using a speech-to-text addon.

Call Encryption

Data security for both your business and customers should be your top priority. You will need sophisticated virtual PBX features like call encryption because of this. The call encryption function ensures that all customer and team conversations are safe.

Select a virtual PBX provider that offers Secure Real-time Transport Protocol (SRTP) and Transport Layer Security (TLS) as its two security levels at all times. Both of these protocols will guarantee that every call you make is entirely secure and that hackers cannot intercept your calls or compromise the network. In addition, it is advisable to have Firewall for PBX servers as an additional security layer.

Call Recording, Reporting & Analytics

Call reporting is a tool that provides real-time information about:

  • How many calls are in the queue?
  • How many are rerouted?
  • How many callers are repeated?
  • How many agents are on break or absent?

Analytics provides deeper insights into call quality, such as incoming call traffic, call deposition status, average deposition duration, etc., which is vital for any businesses looking to improve their communication quality. For example, call recording allows businesses to train new employees, record the conversation for later playback, or resolve disputes. It also allows businesses to analyze the effectiveness of different call scripts.

Call Management Features

A quality PBX server offers additional call management services such as call barging, whispering, coaching, and transfer, to mention a few. With the help of these capabilities, businesses can better monitor the level of customer care they offer, preserving their good name while also assisting in onboarding new employees. Additionally, call routing and forwarding allow incoming calls to be directed to specific agents or dedicated departments based on pre-determined rules. Similarly, call queuing allows businesses to keep the callers engaged with either Music on Hold, a pre-recorded audio clip, or approximate waiting times.

Benefits of PBX

1.   Flexibility

Every business needs to adapt to changing demands. Else face getting replaced by one that adapted. Today, a business that can manage the blows of the market and adjust accordingly is the one that paves the way to the top. Want to scale up your team for a particular campaign? Need to create a local presence without actually being present somewhere? Do your teams want to work remotely? A PBX server is flexible enough to handle every business communication scenario. A PBX phone system’s comprehensive and clever feature set may completely change a company’s communication infrastructure. Communication improvement is the final aim of data analytics, customer management, higher voice quality, 360-degree views, on-hold music, and AI-enabled discussion.

2.   Mobility

Being a cloud-based platform, you may use a hosted PBX to access the program from any location. You may place and receive calls from anywhere as long as you have access to a reliable internet connection and a functional VoIP device.

3.   Scalability

Increase the global reach of your employees with a reliable communication infrastructure. With a hosted PBX solution, you may expand the same communication infrastructure for little to no additional expense, whether it’s a temporary or permanent growth, local or worldwide. The addition or removal of users is as simple as changing the toggle state in the backend panel.

4.   Cost-efficient

A firm survives by making a profit. Because of this, every company, regardless of size, employs a plan to make its procedures more affordable. With the help of a hosted PBX service, you may achieve your goals while using the fewest amount of human or financial resources. Moreover, being an internet-based solution, it doesn’t require any specialized hardware, so the space is saved. Moreover, it also enables organizations to implement the Bring Your Own Device (BYOD) system as well. Also, the majority of the top hosted PBX service providers provide flexible plans or a selection of options. Therefore, you can assess the requirements of your company and make choices appropriately. Additionally, switching between plans as your company’s needs change is simple.

5.   Saves Time

Nothing else can make up for human resources’ value, making them the most valuable asset. With an intelligent system in place, you can automatically divert callers, use AI to lead simple conversations, and relieve your agents to focus on tedious work.

6.   Centralized communication

It becomes more challenging to keep track of all business operations worldwide as firms develop at an unprecedented rate. In order to efficiently track and manage your firm, you need to make the investment in a hosted small business phone system.

You may measure staff efficiency, see missed and continuing calls, and ultimately enhance your company operations with real-time call monitoring and analysis. Above all, you can give Fabulous communication because you always have a single point of contact, your virtual number, regardless of what goes on in your business behind the scenes. In addition, you have the ability to control your worldwide presence from any location with a hosted PBX solution.

7.   Easy to Use

The PBX server is a plug-and-play system that is adaptable, scalable, and easy to use.

The best part of this service is that it isn’t complicated to use despite having such advanced features. Your employees can use it with minimum training or by simply going through user documentation.

Transitioning from a traditional phone line to VoIP may seem an enormous task initially, but compared to the benefits of a PBX server, it is a no-brainer to make the transition quick. These benefits make Hosted PBX for small business owners an intelligent choice.

Different PBX types and core differences

Depending on your requirements and the configuration of your existing system, PBX servers are available in two different types:

  1. On-site PBX server
  2. Hosted PBX server

On-site PBX server

The server is physically placed in the workplace and takes full advantage of existing bandwidth and robust internet connection. This is a preferred choice when businesses wish to utilize existing telecommunication infrastructure, but it’s an expensive choice nonetheless. The hardware cost and maintenance need to be borne by the business itself. So this is mainly chosen by large businesses and enterprises, as the installation cost is a fraction of what it would cost to rewire the entire workplace.

Hosted IP PBX server

The cost-effective solution is the hosted IP PBX server. The PBX server is hosted on the cloud, and the businesses only need to pay a subscription fee to enjoy advanced functionalities such as call stability, improved call quality, voicemail, video calling, etc., and additional features such as advanced call routing, forwarding, recording and queuing. Setting up is as simple as purchasing DID numbers for every extension and paying appropriate PBX leasing charges. Not only is the initial set-up easier and cheaper, but the need for messy wiring or removal of existing infrastructure is also eliminated. This is an excellent choice for businesses to connect offices in different geographical locations.

You can learn more about the pros and cons of each PBX type from Hosted VS. On-site VoIP Systems – Which to Choose for your Business?

How to choose a reliable IP PBX server?

It is elementary to need clarification about which IP PBX type suits your business better. Here are pointers on how to choose a reliable IP PBX server:

  • Create a list of different VoIP service providers
  • List out your business needs
  • Eliminate the providers not matching your criteria
  • Enquire about the security measures implemented
  • Inspect the scalability and feature flexibility
  • Check reputation
  • Compare the prices
  • Discuss project timelines

Vindaloo Softtech is a trusted VoIP development and outsourcing company with 6+ years in creating custom and unique VoIP business communication solutions for clients in multiple industries. Check out the multi-tenant IP PBX solution developed by them and the features they offer.

Wrapping Up

Relying on an outdated business communication system may cost your business dearly without generating revenue. Switching to the PBX server bridges the communication gaps within your organization and keeps your business ahead of the competition. If you want a custom PBX server or VoIP system to streamline communication and enhance collaboration, contact Vindaloo Softtech today.