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<br>The world of telecom/VoIP terms is an [overlapping](https://www.linkedin.com/company/zycoo-co-ltd/) muddle of "same exact same but different." PBX, IP PBX, hosted PBX: They're as similar as their names imply however unique. Most people charged with finding a new business phone system aren't knowledgeable about these terms, not to mention the particular differences that impact their buying choice.<br>
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<br>And why would anyone keep up with telecom specifications? Once you have a phone system in location, it's ideally something you hardly ever think deeply about again. The exception, of course, are the fortunate market folks who dive into the mess to bring you tech-to-English translations like this OnSIP blog. So let's enter it.<br>
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<br>IP PBX<br>
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<br>You may know the term PBX: personal branch exchange. PBX systems are large and costly, and conventional analog systems link directly to PSTN copper lines. Modern PBX systems-and by "modern" here we suggest post-Internet-are IP PBX to deal with digital traffic. Basically, IP PBX is where PBX satisfies VoIP capabilities. IP PBX systems are still on-premises, so they're not the less pricey hosted PBX from a VoIP provider like OnSIP.<br>
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<br>Onsite PBX [systems require](https://www.zycoo.com/solutions/) a great deal of area and a dedicated IT group. For corporations, they can work well, but they're fantastic for cash-strapped startups and SMBs that might not have the office space for a telco-only server space, not to mention the budget for the necessary IT folks.<br>
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<br>VoIP Gateways: Bridging PSTN & VoIP<br>
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<br>PSTN calls send voice signals along copper electrical wiring. VoIP calls break voice signals down into little [digital packets](https://www.zycoo.com/products/) for travel across the Internet. Simply put, the PSTN is analog, while VoIP is digital. A VoIP gateway is the piece of hardware that bridges the 2 systems by changing call traffic from analog to digital and vice versa. Without it, the signals would get stuck trying to switch from one to the other.<br>
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<br>VoIP to VoIP calls are comparable to emails or instantaneous messages: They make up information packages travelling through cyberspace. This is why VoIP to VoIP calls are practically always free. For VoIP to PSTN calls, the signals need a converter. Consider the VoIP gateway like your outlet converters when traveling internationally. Your electronics work fine-they just require a translator for various voltages and outlet shapes.<br>
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<br>Which Do You Choose?<br>
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<br>At the start of this blog, we mentioned that all of this tech is essentially the same however different. This is an excellent way to sum it up, but it's not as valuable when you actually have to choose one. Do you desire IP PBX or a VoIP entrance? Cloud or on-premises? Add in concerns and you'll feel you're back to square one.<br>[asterisk.org](https://www.asterisk.org/products/ip-pbx/)
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<br>This may help clear some things up: All hosted PBX systems are VoIP, however not all VoIP is hosted PBX. An IP PBX system is closer to the legacy PBX systems, just upgraded for IP compatibility. The system still lives onsite, with all of the related costs, much of which are up front. Hosted PBX, on the other hand, is dealt with by a provider, and includes hardware, personnel, and maintenance. All you need to do is have a decent Internet connection and VoIP phones.<br>
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<br>If you're looking to upgrade your existing PBX system, IP PBX may be the best move. Otherwise, hosted VoIP has all of the tools and quality you need for smooth business operations.<br>[asterisk.org](https://www.asterisk.org/products/ip-pbx/)
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