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VoIP vs. PBX – Major Differences That You Should Know



VoIP vs. PBX

While choosing VoIP or PBX, you should find out the basic definitions of these digital concepts and their differences. 

VoIP: Familiarity

A traditional VoIP gateway is a solution that connects to the telephone network. The main task of it is to record and convert human speech into a digital code that is transmitted to the addressee. During the signal transmission process, there is a slight difference between the voice sounds at one end of a line and the conversion of the signal into synthesized speech at the other. The average latency is nearly 10-45 milliseconds. In addition to its main function – encoding and decoding of voice during transmission over IP-protocol, the VoIP gateway has all the usual options that ordinary telephone operators have (you can get acquainted with them more closely by visiting the Freezvon website). These options improve the performance of incoming calls and telephony supply of needs. Using a voice IP gateway, you can originate and receive calls with the help of the Internet from mobile and landline phones. 


The PBX means an internal system that connects phones within the corporate network, allowing calls to external numbers (partners, clients, and contractors) at IP telephony rates. Hosted PBX is indispensable for big and small businesses that have 500 or more monthly calls. It is difficult to manually process 50 or more calls a day: everyone is running around the office, looking for the right specialist. Moreover, it takes a long time to transfer a client to him/her. As a result, time is running out, customer loyalty and employee productivity are falling. A virtual PBX can solve the problem with multichannel, redirection to the right manager, and speed-up of applications processing.

VoIP vs. PBX: Difference

It’s important to find out the hosted PBX vs VoIP dissimilarity in order to make the right choice.

  • Startup investment. While on-site PBX installation, the person requires a lot of various facilities (routers, gateway, software, etc.). After VoIP choosing, you need to pour cash into IP phones.
  • Operating expenditures. When comparing cloud PBX vs VoIP, pay attention that VoIP providers lay emphasis on a subscription model, while PBX running costs are rest upon the value of services, maintenance, software license, etc.
  • Call quality. VoIP features depend on audio codec as PSTN; moreover, its network configuration errors can have a bad influence. PBX systems usually have high call quality.
  • Trustability. It comes down to the VoIP provider, as the company is responsible for that. In a case of a proper PBX installation choosing, the person gets a reliable solution. The only problem that may appear is about the required expertise of an IT team.
  • Mobility level. VoIP brings the possibility to get/make calls outside the office or in any part of the world. There are special apps for iPhone, Android, and desktops, which make it more comfortable to control the whole process anywhere. PBX systems bank on the internal data network, so they can’t work as they have to outside the office.
  • Security. Both solutions are beneficial from the noted point of view. The VoIP works using a special enciphered code, moreover, verification tests are periodically conducted in the system. PBX external calls go directly to the PSTN, so information is also protected at a high level.
  • Customization. It is available in both systems, but VoIP offers a large number of auxiliary solutions without the necessity to install additional technical equipment, while PBX requires supplementary hardware and engineering advice.

It is necessary to analyze in detail both decisions, consider the benefits for a particular business, and only then determine conclusively.

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