Skip to content

A guide to the benefits and disadvantages of using PBX or VoIP technology. Learn about what makes these services so popular.

Pros and Cons of PBX and VoIP Technology

We’re living in a digital age. There are more smartphones than people on Earth and social media has made the world an even smaller place. As such, it’s never been easier to find new ways to keep up with the latest trends- especially when it comes to finding better ways for businesses to operate. With that being said, many companies have found themselves struggling with their phone system technology as it’s outdated and inefficient.


PBX and VoIP technology are the two most popular methods of communication for businesses. Both PBX and VoIP offer a wide range of features to their clients, but they also have their differences. With that in mind, it’s important to know which option is right for your business needs before investing in one or the other.

What Are PBX and VoIP Phone Systems?

In the past few decades, the way people communicate has changed drastically. The switch from landlines to cell phones left many businesses scrambling to find a cost-effective solution for their business communications needs. Today, there are two main methods of communication that have emerged as solutions: PBX and VoIP.

PBX and VoIP are two different types of telephone systems that handle voice communication. PBX is a private branch exchange, which can be an internal system only accessible to the employees who have access to it. VoIP stands for Voice over Internet Protocols. It is a way of making phone calls using the internet instead of traditional copper wire phone lines- giving more flexibility and lower costs.


PBX (Private Branch Exchange)

A PBX (Private Branch Exchange) is a phone system that allows companies to provide their employees with more than one phone line. It does this by connecting the company’s main office lines with additional extensions and “trunk” connections. The PBX also provides an automated attendant service, voicemail-to-email service, and other administrative features like call forwarding, message waiting indicators, etc.

For small businesses, in particular, a PBX can be invaluable for cutting down on costs associated with having multiple landlines or mobile phones for every worker without sacrificing convenience or effectiveness of communication.

There are many different types of PBX systems that offer various features and services for businesses. They range from large, expensive systems with all the bells and whistles needed by larger corporations to small-business models that are more affordable but still provide robust functionality.

VoIP (voice over internet protocol)

A VoIP phone system is a telephone network that connects your business to the internet instead of using traditional landlines. It’s an affordable, easy-to-use solution for both small and large organizations.

VoIP phones allow you to make calls from anywhere in the world, as long as you have an internet connection on any device with a microphone and speaker (i.e., computer, smartphone).


VoIP can be used in conjunction with other communications tools like video conferencing or Skype. VoIP systems are typically less expensive than traditional phone services because they use bandwidth rather than physical lines between locations.

It can be used by small businesses, but it’s primarily intended for large companies with many employees. VoIP systems are much cheaper than traditional phone lines and offer more features such as voicemail-to-email, caller ID on TV, call forwarding from any device (smartphone, desktop), and conference calling.

Pros and Cons of PBX and VoIP Technology

So you’re thinking of upgrading your office phone system? PBXs and VoIP technologies are both great options, but there are some pros and cons to consider. Read on to find out more about the benefits and drawbacks of each type of technology. In our next article, you can find more information on what is a VOIP PBX.


PBX Pros:

Hosted PBX phone systems are an excellent option for any company looking to grow their communications without breaking the bank! PBX phone systems offer a wide range of benefits for companies, from increased productivity to saving money. They can help increase office efficiency, improve customer service and provide a better work-life balance for employees. PBX phone systems are also much more cost-effective than other options like VoIP or cell phones.

  • Infrastructure
  • Simplicity
  • Reliability
  • Cost

PBX Cons:

PBX phone systems are a great way for businesses to cut down on expenses, but they can come with some serious downsides. PBX phone systems are also complicated, expensive, and hard to maintain at times. It’s important to discuss the cons of this type of phone system in an effort to make sure that you have all the information necessary for making a decision about which type of phone system is best for your company.

  • Expansion
  • Scalability
  • Management

If you are interested in hosted PBX services you can read more about what is a hosted PBX and how does it work.

VoIP Pros:

There are many people who work in an office and are required to use a phone on a regular basis. One of the challenges that these people face is being able to communicate with their customers and clients when they are not at their desks or office spaces. This can prove difficult if there is no one around to answer your call, you need information quickly, or you have important news about your business. VoIP phone systems offer an alternative solution for anyone who needs more flexibility while working from home, traveling for business purposes or just wants more freedom as an employee. Listed below are all the pros of utilizing this type of phone system.

  • Scalability
  • Features
  • Redundancy
  • Virtualization
  • Bring Your Own Device
  • Integration

We have a dedicated article on the many benefits of VoIP systems.

VoIP Cons:

VoIP phone systems have become a popular option for small businesses and startups. However, the VoIP phone system cons are often overlooked by those who don’t do their research.

  • Increased costs for long-distance calls
  • Some trouble making international calls
  • No way to transfer calls from one line to another
  • No video conferencing capability
  • Difficulty in contacting customer service

PBX vs. VoIP: main differences

PBX and VoIP are two different ways to make phone calls. PBX is a private branch exchange, while VoIP is voice-over-internet protocol. The primary differences between these two systems are in their cost, reliability, security, scalability, and features. Let’s take a look at the key points of each system and how they compare.

Initial setup costs

PBX and VoIP are two different types of phone systems that have a lot of similarities. But there are some differences in the initial setup costs as well as the ongoing monthly expenses for each of these systems. The PBX option has higher upfront costs but lower monthly expenses than VoIP and other systems because it includes hardware such as a router or switch (and these are not included in VoIP). On top of this, PBX requires an IT person on-site to set everything up whereas VoIP can be set up by anyone with a computer or smartphone who knows how to navigate their browser.


Private Branch Exchange is an older type of phone system that uses a physical telephone switchboard to connect calls between phones on a network. The initial cost includes hardware and software installation with setting up fees that range from $2,000 – $5,000 depending on how many telephones you need to add to your dial-up line. You also pay for maintenance contracts which can run anywhere from $300-$600 per year depending on what level of service you want.

Monthly costs

When comparing their monthly costs, PBX has more upfront investments but much lower monthly expenses than VoIP. However, in most cases, businesses should go with either PBX or VoIP depending on their needs and budget. The cost of a PBX system is higher than the monthly cost of VoIP, which uses the internet as its connection point instead. A company can save money by switching from PBX to VoIP if they have an IT department with in-house expertise or outsourced IT services.

Call Quality

PBX systems are a good choice for companies that need to have the ability to easily transfer calls from one extension to another. VoIP is best used in small businesses and companies where call volume is low. One of the main differences between PBX and VoIP is that with PBX, the quality of your voice will be high because it uses analog signals on copper wires. With VoIP, however, you’ll experience lower-quality audio because it relies on digital data packets over the internet which can lead to more ambient noise or static in your phone line.


Scalability and Ease of Upgrading

PBX and VoIP are both technologies that have come a long way, but they each have their own unique advantages. PBX is more scalable than VoIP when it comes to large business networks since you can add hardware as needed. With VoIP, if the network becomes too busy with too many users and calls coming in at once, then quality suffers for all connected callers. PBX also offers security features like authentication which may be beneficial depending on your company’s needs.

A PBX is a private branch exchange, which means that there is an office in the company that acts as the central hub for all communications. And while a PBX usually doesn’t require any configuration or additional equipment to get up and running, upgrading it can be costly and time-consuming because you need to have someone come in to do the work. With VoIP (Voice over Internet Protocol), your phone service works through an Internet connection rather than through copper wires like on a traditional landline, so it’s easier to upgrade with new features at little or no cost. All you need is enough bandwidth from your ISP (Internet Service Provider) and a compatible IP phone system.


The main difference between PBX and VoIP is flexibility: with PBX, there’s no limit on the number of extensions or the total number of simultaneous calls; with VoIP, there’s a limit based on software licensing fees. VoIP also offers more flexibility because you don’t need to buy new hardware every time you want to change providers or offer new services like international calling or toll-free calling.


Reliability and Security

PBXs offer more reliability and security, while VoIP offers less expensive long-distance rates. In addition, a business can install the same phone system in multiple locations easily with a PBX. A company will need to purchase multiple VoIP lines if they want to do the same thing with their service. Finally, since PBXs use landlines for connectivity, connection speeds tend to be better than those of VoIP providers. For these reasons it is important that companies determine which solution best suits their needs before making any commitments or purchases so as not to waste money on products that are inappropriate for their business.

Which is the Best Phone System for You?

The PBX and VoIP technology debate has been going on for years. What are the pros and cons of both technologies? Which one is better for business? It depends on who you ask. Some businesses swear by VoIP technology, while others prefer a traditional PBX system.


Some companies have chosen to use both technologies in tandem, finding that they each offer unique features that can be beneficial depending on what needs their business may have. Other businesses like using either one or the other – it all comes down to personal preference as well as budget constraints.

Deciding between a PBX or VoIP for your business can be difficult. A lot of factors come into play when making such an important decision, including the size and type of company you have. As you can see, PBX and VoIP are both great options for your business communications needs. Which one is right for you? Ultimately, this decision will depend on the size of your company, how often employees need to be in contact with each other via phone or video conference calls, what type of internet connection speeds you have available at work, and whether there’s a data plan that allows unlimited voice minutes. Once again it pays to do your research before making any decisions about which system will best suit your company’s specific needs.