Difference Between PBX and IP PBX

A PBX, also known as a unified communications system or a business phone system, serves as a fundamental central controller for calls within a company.

Internal traffic between stations is handled by IP PBX systems, which also operate as a gatekeeper to the outside world.

Private Branch Exchange is a very ancient word for a system that has changed greatly over the last century.


The main difference between PBX and IP PBX is that, like earlier PBX systems, the fundamental functions of an IP PBX have been transferred to software rather than hardware. This gives IP PBX systems a lot more flexibility than traditional PBX systems. In comparison to classic PBX systems, IP PBX solutions are also more scalable. Users in previous systems were limited to a particular number of lines due to the circuitry’s hard wiring.


A PBX (Private Branch Exchange) is a private communication system that enables people to communicate with one another.

Connectivity to the telephone network is provided by a combination of hardware components. The internal telephone network of a corporation is managed by a PBX.

Inbound and outgoing calls are routed through a PBX system, which also handles sophisticated calling capabilities.

A contemporary version of private branch exchange is IP PBX.

An IP PBX is a telephone switchboard that instead of using the PSTN and traditional phone lines, utilizes IP to deliver phone calls across computer networks.

Instead of using phone lines to connect to the PSTN, an IP PBX connects to a PSTN gateway through the Internet.

Comparison Table Between PBX and IP PBX

Parameters of ComparisonPBXIP PBX
VoIP compatibilityDoes not have VoIP.Has VoIP support.
FeaturesTransfers only phone conversations.Can handle both calls and data.
ScalabilityLimited to a certain amount of slots.Highly scalable.
UpgradesNot very easy to upgrade and add new functionalities to it.The process of upgrading is very easy and new functionalities are easier to add.
Function handlingHandled by Hardware.Handled by software.

What is PBX?

The word “PBX” simply refers to a business-grade telephone network. Business phone systems provide essential voice functions that businesses require to manage their day-to-day operations.

Extension dialing, business hour settings to route calls outside of office hours, customer waiting queues, music on hold, and call conferencing are some of the features available.

These capabilities, which, in brief, link individuals at work, are not available on residential phone lines or cell phone services. Analog or digital phone lines are used to run PBX systems.

The actual phone line that enters the organization may be divided into many lines with a PBX phone system, allowing it to accommodate additional telephones.

There is no one-size-fits-all solution when it comes to PBX systems.

Instead of making a huge upfront investment, businesses may use hosted PBX solutions provided by a managed service provider.

However, the supplier provides PBX infrastructure as a service, and the company pays a monthly subscription to use it, eliminating the need to recruit and educate IT personnel.

PBXes exist in several configurations, but the majority are now digital and use the Internet to deliver audio and video conversations.

Traditional Analog PBX Phone System, On-Premise IP PBX or VoIP PBX, and Hosted PBX or Cloud Phone System are the three options.

What is IP PBX?

An IP PBX is telecommunications equipment that connects desk phones in a building to facilitate voice communication.

Using an internet connection, it manages incoming and outgoing calls throughout its phone network.

Many of the operations of an IP PBX are managed, configured, and changed using a web-based graphical user interface console. This makes managing an IP PBX easier for administrators.

Users may even be given their personalized web page to log in to and select their own choices.

Using the Application Programming Interface (API) supplied by many IP PBX suppliers, other programs and applications can communicate with IP PBX.

IP PBXs store voice mail on servers or computer discs, allowing them to store more voice mail.

When a new voice mail is received, an IP PBX can send an email notification to the user.

Using an IP PBX, advanced Interactive Voice Response (IVR) creation or customization is quite simple, and the tree structure may be modified regularly.

Integrating databases such as MySQL with IP PBX might enable a variety of fascinating applications.

When users request certain database items, an IP PBX may be designed to get them by hitting certain key combinations prompted by an IVR – Interactive Voice Response.

Mobile Banking is a nice example of a database-based application provided by IP PBX.

Main Differences Between PBX and IP PBX

  1. IP PBX adds IP VoIP compatibility to earlier PBX systems.
  2. PBXs can only transfer phone conversations, but IP PBXs can handle both calls and data.
  3. While a PBX system is restricted to the number of slots it was intended for, an IP PBX is extremely expandable.
  4. In comparison to earlier PBX systems, upgrading the present IP PBX is a lot easier and adding new functionality to an IP PBX is as simple as installing a software update provided by the vendor.
  5. Most of an IP PBX’s functionality is handled by software, as opposed to hardware in a PBX.


All phone calls were routed through the phone company’s network before the internet, which needed analog phones on both ends.

Regardless of the cost, many firms found the IP PBX system to be a viable solution. An IP PBX is a modernized version of a PBX system that takes it into the modern era.

An IP PBX system could be used by any firm since it was less expensive than a PBX system, which was previously exclusively available to large corporations.

The system wasn’t cheap, but it saved money on overhead and had features that made it a worthwhile investment for businesses of all sizes.]

Instead of PBX systems, most businesses are now using IP PBX systems.


  1. https://www.proquest.com/openview/a6b2ff5f9d049759aa3d55c23ab278b2/1?pq-origsite=gscholar&cbl=52057
  2. http://www.recursosvoip.com/docs/english/311289.pdf
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