What's the Difference Between VoIP and IP PBX?
August 27th, 2015 Matt McCue

IP PBX is the premier business solution for telecommunication because it’s extremely flexible and scalable, at a cost that's affordable to most businesses.

What is the Difference Between VoIP and PBX?

Photo Credit: Samantha Celera


We recently received a question from one of our potential clients about the difference between VoIP and PBX, and we felt that a Tridacom article outlining the differences was necessary.


We often hear the term VoIP being used as an “umbrella” term for all the types of calling systems that deliver calls via the internet, but in reality VoIP is the term for the technology that these different systems use. Any internet-based phone system can be called VoIP, which stands for Voice over Internet Protocol, as long as it uses the technology that digitalizes the voice signal so that it can be routed over the internet from the caller to the destination. 


IP PBX refers to Internet Protocol Private Branch exchange is a private phone system that businesses use to route calls between employees in the network, all of whom share a certain number of external phone lines that callers outside the network may use to call the business. IP PBX typically uses a digital switchboard (“Press 1 for sales, Press 2 for tech support, etc.) to route calls to the intended recipient of the call. 


is perfect for the small to mid-sized businesses that don’t require each employee to have their own dedicated phone number, which lowers the operating cost of the organization’s communication network. Skype is an example of a Cloud-based telecommunication system, and when users use the app to call other Skype users it’s being used as form of a PBX.


A Hosted IP PBX, which operates on the organization’s servers or a third-party’s servers, is ideal for the larger enterprises that wish to avoid outages, downtime, maintenance costs, and expensive hardware associated with a PBX using legacy phone systems. 


All VoIP for Business systems come packed with additional features that employees can use to increase productivity and their connect-ability. Features such as Call Forwarding, Call Filtering, Voicemail, Caller ID, and more let your employees stay focused without missing that important call. All of the VoIP systems for business are easy to add users to the network, which is ideal for the expanding business.


IP PBX is the premier business solution for telecommunication because it’s extremely flexible and scalable, at a cost that is affordable to most businesses. 


To learn more about IP PBX and how it can be suited to your business, please contact Tridacom today for more information. One of our Business Communications Experts will be happy to discuss the options available, and which one is ideal for your enterprise.


Tridacom is a 100% Canadian IT and Telecommunications company with offices in Edmonton, Regina, Toronto, and Vancouver. Call 1-877-489-0123 for more information on any of our services.

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