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What is IP-PBX? Reasons to Switch to an IP-PBX Phone System

IP-PBX is the telephony systems that facilities telephone calls over a secure IP data network. The analog voice signals are converted to digital packers and transmitted over the secure data network. The latest technology comes loaded with the advanced telephony features and helps companies scale up without any hassles. The robustness provided by the IP-PBX systems makes it an ideal choice for the smaller and larger organizations. The IP-PBX system can be easily connected with the existing PSTN lines by using the optional gateway. It is really easy for businesses to upgrade their communication system to the most advanced data and voice network.


For migrating to the IP-PBX system, organizations will not be required to shut down their existing communication infrastructure and they can carry on with their daily business operations. Another great advantage of using IP-PBX telephone system is that the organization can retain the regular phone numbers. Thus, the IP-PBX system is able to switch the local calls on the data network within the company while the users will be able to share the same phone lines.

The IP-PBX telephone system comprises of one or multiple SIP phones, IP-PBX server and the optional VoIP Gateway for connecting with the existing PSTN phone lines. The working of the IP-PBX server is similar to that of a proxy server. The desk phones or soft phones function as SIP clients and are registered with the IP-PBX server. Whenever a call request is placed by the SIP clients, it requests the IP-PBX for a connection. Directory consisting of all the phones or users corresponding to their SIP address is stored by the IP-PBX and it is able to establish a connection for the internal call. For the external calls, it is routed through the VoIP service provider or VoIP gateway.

Some of the reasons behind switching to an IP-PBX phone system are:

  • Easy installation and configuration – It really easy to install as well as configure an IP-PBX phone compared to the traditional phone systems. The IP-PBX works just like software installed on a computer and can use the interface as well as processing power of the computer. IP-PBX can be installed and maintained by anyone who has basic knowledge about computers and networking. However, the installation and maintenance of traditional phone systems is carried out by trained personnel only.
  • Easy management through interactive GUI – The IP-PBX systems can be easily managed via a GUI or a web-interface. Users are able to maintain as well as fine tune the phone systems according to their preferences. On the other hand, proprietary phone systems are very difficult to manage because of a complex interfaces that can be again used by trained technicians only.
  • Great cost savings – The IP-PBX systems can be easily connected to VoIP service, which facilitates long distance and overseas calls at cheaper rates. The businesses that have multiple branches can connect their phone systems and enjoy free calls between the branches.
  • Less wiring – The IP telephone systems facilitate direct connection between the IP Phones and the computer network port. The software phones are installed on the computers – all these do not need any kind of extra wiring. Thus, creation of extensions and addition of new phones can be carried out without any wiring.
  • Higher scalability – Users will be able to add new lines and extensions without worrying about investment on new hardware. The IP-PBX telephone system is highly scalable and does not require any kind of investment on hardware. Thus, an organization on an expansion mode will be able to do away with additional expenses.

Written By

Michelle Patterson is a blogger more interested in HRMS, Technology, and Business. She has been invited by many companies to see their products and love sharing the knowledge and experience with the world.



  1. Pingback: What is IP-PBX? Reasons to Switch to an IP-PBX ...

  2. Rio Roble

    May 27, 2016 at 2:32 am

    Hi Michelle,

    Great post!

    IP-PBX is really useful in small business or companies.

    Our company is a small one, and we use these system for communication with our co-employees. And it really saves a lot of time and money.

    And when choosing a provider for this product. You should choose the provider that setups a good and secured line network for your telephony for communication security of the company of course.

    Thank you so much for posting this article. Learned a lot from it.


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