Are you looking for a better communication solution for your employees? If you’ve researched what’s available, you probably ran into two popular terms — virtual phone systems and PBX.
These solutions might seem similar, yet couldn’t be more different in what they offer and how they work.
It’s best to learn more about both options and why the virtual phone system is the way of the future.
A virtual phone system is an online platform that enables users to manage business calls from anywhere, as long as they have a stable internet connection. You can use a virtual phone system to handle calls through desktop apps, mobile devices, and even traditional landlines, depending on the platform.
Standard phone systems limit people to a specific location, but virtual phone systems add flexibility to existing hardware. This is a much-welcomed addition to any company that steers more towards remote work.
A business can easily accommodate more remote workers and build a strong team by adding a virtual phone system. The communication platform makes interactions between team members seamless, boosting productivity across the board.
Connectivity is the name of the game. However, an excellent virtual phone system can do much more. Many providers offer scalable infrastructures so that small to enterprise-level businesses can benefit from advanced features.
In addition, virtual phone systems are often more affordable, thus incentivizing companies to build remote teams.
PBX stands for private branch exchange. It’s a private telephone network that businesses can install to enable their employees to communicate freely between departments and offices.
Since it’s a complex internal network, a PBX will use several hardware components to manage multiple inbound and outbound call features.
As part of the installation, companies need to provide ample room to accommodate the physical space requirements of an internal phone system.
Let’s look at the similarities and differences between the two types of phone management solutions.
With a virtual phone system, you can use both inter-office calling and public switched telephone network (PTSN) calling.
Best of all, the only thing you’ll need to incorporate a virtual phone system for in-office and remote employees is an internet connection. The quality of the connection will determine how scalable and reliable the solution is.
Most virtual phone systems provide standard features such as voicemail transcription.
So, how does a PBX compare?
Inter-office and PSTN calls are possible and easy to manage. However, features such as voicemail transcription and text messaging won’t be available.
A PBX is also not set up to accommodate employees working from home. Therefore, it doesn’t streamline interactions between coworkers.
A PBX also lacks the scalability of a virtual phone system or voice over internet protocol (VoIP) phone service because calls are transferred through an analog network, an Integrated Services Digital Network (ISDN), or a Primary Rate Interface (PRI). Moreover, installing a PBX is generally more difficult due to the many hardware devices required.
PBX will always be a more expensive solution for businesses than its cloud-based alternative because of the difference in transfer methods. Another reason for the added cost per user is the need for ongoing maintenance that service providers factor into their offers.
A virtual phone system relies on VoIP technology. The system can use the technology to connect calls made from local numbers and toll-free numbers for multiple users. The magic happens when call management occurs in the cloud instead of the traditional telecom infrastructure.
Physical lines aren’t required to enable a virtual phone system. The technology converts any phone number into a virtual number. It does the same to analog sound to achieve better quality.
Of course, there’s some infrastructure involved. Service providers need a reliable network that can act as a backup in various scenarios to avoid loss of communication. But overall, a virtual phone system won’t need the kind of physical infrastructure a PBX does.
One of the most convenient aspects is the ability to forward calls between multiple lines so that users are always reachable, even if they’re not sitting in the office.
In contrast, landline solutions restrict phone users’ mobility to a specific location.
With a VoIP solution, you can call and receive calls from anywhere as long as you have a strong WiFi or Ethernet connection.
There are a couple of things you should consider before selecting your next VoIP service provider.
Just because you’re thinking about a cloud-based solution to managing your calls doesn’t mean the service provider shouldn’t adhere to industry standards.
It’s best to look for companies with PCI, SOC, or HIPAA credentials. Any one accreditation or a combination of the three will do the trick. These credentials show a greater level of trust in the provider to meet specific security standards.
VoIP functionality can differ significantly between service providers. Thus, this is one of the biggest decisions companies need to make before buying a phone system. Depending on your business’s needs, what your employees prefer, or your growth plan, a system might be significantly more valuable than another.
Some of the features that could interest you include:
It’s crucial to compare offers and understand what features best align with your company’s demands.
A virtual phone system’s ease of use is one of the main selling points and advantages over a traditional PBX.
However, don’t overlook support.
A cloud-based phone management system won’t require on-site maintenance. But emergencies happen, so having a support team on hand is crucial.
Service providers who offer 24/7 support are in high demand. Having multiple communication channels like phones, emails, and a built-in chat system can also be more beneficial to your company in a time of need.
A virtual phone system can be ranked based on similar characteristics to websites. In the online world, uptime is everything.
For example, websites known for frequent downtime periods have difficulty maintaining customers.
In the case of a VoIP solution, uptime is crucial. Companies use these systems to boost productivity and help employees communicate freely from anywhere.
If the system crashes often, employees can’t exchange information, productivity suffers, and the business can fail to deliver results to clients.
Therefore, depending on the VoIP system’s implementation scale, it could directly affect a company’s bottom line. Ensuring you find a service provider with 99.9% uptime or higher is practically mandatory.
Consider user reviews like you would with any other important purchase. Sometimes the accreditations and uptime won’t tell you the whole story.
User feedback, testimonials, and online reviews give you a better sense of how the service provider handles their business.
A virtual phone system is cheaper than a PBX, but that doesn’t mean they’re all super affordable.
Many factors can influence a service provider’s pricing structure. Usually, the more advanced the VoIP features, the higher the cost.
You might also consider the differences between monthly and one-time fees.
Like most sellers, VoIP providers can have various upsells and add-ons. Compare offers to see if you’re getting enough functionality with a basic membership or if you need to cough up more cash to get the system your company needs.
These are some of the most important factors to consider when upgrading your phone system to a cloud-based management solution.
Despite its many benefits, a virtual phone system can have some cons. While they won’t outweigh the pros, it’s still a good idea to know what to expect.
Firstly, the quality of the calls will often depend on the quality of your internet connection. If you don’t have a reliable provider and a high-speed bandwidth, the call quality will suffer.
Upgrading to a virtual phone system is an excellent opportunity to revisit the contract you signed with your internet provider. If the current connection is lackluster, a VoIP system might not make things better for your employees.
Secondly, the cost can vary greatly. Virtual phone systems remain more affordable than PBX solutions, but exceeding data limits can get very expensive very fast.
Before buying a VoIP system, re-check your data plan. Then, take some time to instruct the users on using the network. It’s probably best if everyone keeps their non-business calls to a minimum.
Another potential drawback of using a virtual phone system is availability. This phone management solution connects employees from different locations and time zones.
While that’s great in theory, it can backfire for some people. Being essentially always available can hurt workaholics. Some employees and even business owners might push themselves unconsciously into burnout.
Picking a virtual phone system and relying on VoIP for communication over a PBX solution is a no-brainer.
But that doesn’t mean making a decision won’t come with some challenges.
Virtual phone systems can be complex, and the offers vary wildly. Proper research and further understanding of the benefits and drawbacks are necessary for making fully informed decisions.
Suppose you’re looking to get an edge in communication and increase productivity in your business. In that case, Telephono could be the right choice for your company.
It comes with an infrastructure that can support big businesses yet still offers pricing and feature flexibility to accommodate smaller, scaling companies.
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