What is an IP PBX? -(Complete Definitive Guide)

IP PBX (Internet Protocol Private Branch Exchange)

In short, IP PBX is a central switching system for phone calls, video calls, email, fax, instant messaging, conferencing solutions, SMS, and mobile telephony within a business. The PBX handles internal traffic between stations and acts as a gatekeeper to the outside world.

Haloocom - 3CX ip pbx overview

Internet Protocol Private Branch Exchange (IP PBX) is a PBX system that is built over IP-based architecture for conveying and overseeing voice correspondence administrations. IP PBX provides IP telephony and switching services between an IP telephone network and a public switched telephone network (PSTN) system.

What is an IP PBX SYSTEM?

Prior to the web, all telephone calls experienced the telephone organization system, which required simple telephones on each end. At that point, starting during the 1990s, engineers made the capacity to channel calls through the internet’s data network. This is known as Voice Over Internet Protocol (VoIP). 

VoIP works in the following sequence:

Haloocom - VOICE CALL

  1.  Analog telephone calls are changed over to digital signals.
  2. The digital signals are translated into Internet Protocol (IP) packets.
  3. The IP packets are converted back to telephone signals and received by telephone on the other end.

This new framework was progressive for some organizations, yet it was as yet a speculation. Organizations needed to by and by supplanting their hardware and programming, this time with costly IP frameworks and telephones. In spite of the cost, the IP PBX System was profitable for many organizations. 

Basic IP PBX Setup:

Basic IP-PBX Setup Explained

Advantages of Internet Protocol PBX vs a Traditional PBX:

  1. Single Network
    • Easy Installation and It is very easy to set up.
    • Traditional PBXs require their own network and it is quite expensive/time consumed to build a separate telephone network spanning the entire business location(s). With IP Telephony, the Computer Network can be used to carry voice, video, data, and mobility features
  2. Multiple Office Peering
    • IP PBX’s transmit voice calls over the WAN IP Network.
  3. GIGANTIC Cost Savings
    • Using SIP trunking with an in-house Internet Protocol – PBX can connect to lower cost VoIP providers; reducing phone bills, especially long distance, and International calls.
  4. Much easier System Management
    • It has a web-based user Interface and hence an Internet Protocol – PBX system will be much more easy to understand for computer savvy people, especially someone who has good experience with networks.  This can be especially true for Asterisk-based systems that have a front-end GUI such as Free PBX.
    • Hosted IP PBX– Since there’s no end-user management involved with a virtual PBX, it’s easier to use than a traditional phone system.
  5. Softswitches
    • Some IP PBXs are software that can be run on existing computers/servers.
    • For example, IP PBX could be configured on Asterisk, Tribox, and FreePBX.
  6. Integration of Multiple Technologies
    • Unified Communications (voice, video, data, and mobility)
    • Mobile –softphone use
    • Fax
    • IP PBX can also be configured with many popular CRM technologies available in the market.
  7. State-of-the-art Security
    • Encryption (TLS and SRTP)
  8. Scalable
    • With an IP PBX, we are able to add more users/extensions as and when we need it.
    • We can also choose and customize the features which we need.
  9. Session Initiation Protocol (SIP)
    • With the help of SIP- an open source technology, it eliminates vendor lock-in. 
    • SIP Endpoints: Power of the internet and mobile devices in one.

Difference between a VoIP gateway and IP PBX

In an IP PBX, the phones and phone switch are local IP, which implies that the conversation is put into voice packets at the source and then transmitted as native IP packets to be reassembled at the receiving end. In the older non-Internet Protocol PBX systems, digital conversations are transmitted distinctively over the POTS (plain old telephone service ). All Internet Protocol PBX’s can translate packets for the POTS network where and where needed, for an example, it can be used for analog fax. 

A VoIP gateway separates the conversation and stuffs the bits into IP packets at the network edge for transmission over the IP network. The thing that matters is that the old, analog voice network supposes it will transmit over the POTS network, however, the passage packetizes the conversation into VoIP digital packets.

Plain Basic Advantages Of IP PBX (Why should someone really go for IP PBX?)

  1. Deployment cost just for one-time
  2. Save Huge on Service costs
  3. Various Built-In Features (IVR, auto-attendant, etc.)
  4. High-End Data capability –CDR, Call Recording, etc.
  5. Multiple-office peering

What is Unified Communication?

Unified Communications alludes to a telephone framework that coordinates (or “unifies”) different communication methods within a business. 

For instance, your business likely communicates in various ways: phone calls, video conferencing, instant messaging, email, SMS, fax- the rundown continues endlessly.

A Unified Communication arrangement unites all the manners in which your business communicates and gives them a chance to talk to one another so they can cooperate in one framework. Unified Communication helps in making your business considerably more effective. 


Unified Communications Voice:

  1. Customary voice features
  2. Coordination of voice features with video, data, and mobility applications
    • Door Access cameras
    • Video Surveillance cameras
    • Softphone applications
    • UC desktop clients

Unified Communications Video:

  1. Make an exhaustive arrangement to view, monitor and receive alerts from IP cameras.
  2. Register IP cameras to the PBX
  3. Make video calls to IP cameras to view live feeds
  4. Speak through cameras with 2-way audio & video.
  5. IP cameras can be set to automatically call a video phone when an alert is triggered.
  6. Get alerts from anyplace in the world.
  7. Unified Communications video can be integrated with:
    • Video phones
    • UC Desktop clients
    • SIP Door Cameras
    • IP Video Surveillance Cameras
    • Video conferencing systems

Unified Communications Data:

Following are the Integrated Data Features:

  • CRM Softwares
  • Call Recordings
  • CDR- Call Detail Record
  • Phonebook files 
  • Voicemail/fax forwarding to email
  • Automatic system backup

Unified Communications Mobility:

  1. Desktop UC clients
    • IM, Voice calls, video calls, CRM
  2. Access everything you need from anywhere
    • Call recordings
    • CDR- Call Detail Record
    • Fax
    • Voicemail
    • System settings and system backup
  3. Softphone applications and multi-office peering

Two Types of IP PBX:

IP PBX  frameworks can regularly be isolated into various classes of administration types.  An Internet Protocol PBX may either be located on the premises of the business or offsite at a PBX management office. The different types as follows:

  1. Hosted IP PBX (Located Offsite)
  2. On-Premise IP PBX  (Located at the business)

What is Hosted IP PBX?

What is hosted ip pbx

Hosted IP PBX is also known as “Cloud IP PBX”. The hosted IP PBX outsources Business Communication hardware and control and it often bundles various services. Hosted IP PBX requires service contracts or annual contracts and the hosted IP PBX is not placed in the business location, it is instead placed in a cloud. The hosting provider controls the maintenance, updates etc.

What is On-Premise IP PBX?

On Premise PBX

An On-Premise IP PBX is a system that resides on the business location that uses it. In an On-Premise PBX, you can choose the service provider you want but all the maintenance and additions are done by the business. (i.e. IT Manager, Installer or a Reseller). The best part about the On-Premise is that the business can pick and add all features freely and also the business has full control of the phone system.

Difference Between Hosted and On-Premise IP PBX:

LocationPBX hardware is on-site.PBX hardware is Off-site.
Support/MaintenanceSupport/Maintenance is controlled on-site by the Engineer or IT Manager. 24/7 monitoring and system redundancy is the responsibility of your hosting provider.
Physical ResourcesOn-Premise needs a conditioned space for
server/appliance hardware
Needs no on-site conditioned space for equipment.
Human ResourcesNeed IT staff to manage everything.Hosting providers manage everything.
Upfront CostIt may be a bit high upfront because of the purchase of server/hardware but it offers little or no repetitive month to month costInitially maybe less because no server equipment is purchased, but there is a monthly cost which is incurred.
ExpandabilityOn-Premise may require additional server equipment in additions to phones.Hosted only requires additional IP Phones for expansion.
Cost of OwnershipOn-Premise has more cost of ownership due to staff and hardware requirements. Hosted has a comparatively lesser cost of ownership because no IT staff and equipment is required.
End-user Customer
The responsibility of Internal IT staff and equipment manufacturer.The responsibility of hosting provider.


Ever since the day VoIP calling launched they have started providing better features for lower prices, its only since then that IP PBX systems have dominated the market. An IP PBX (Haloo Xchange) consists of a server and various SIP endpoints which are registered on it. These endpoints can be anything- physical phone, computers running softphone apps on mobile devices which have SIP/VoIP apps, etc. The server has the data of all endpoints with the addresses and all the other details which are used to establish connections.

Haloocom is a Business communication company which deals and distributes all kinds of products that deal will business communication. Example- IP PBX, Contact Center and Video Conferencing. Haloocom’s latest communications technology can ramp up your productivity and radically improve how you interact with and serve customers. Innovate faster, respond quicker, deliver more. Visit www.haloocom.com for all your queries on business communication

Hope this article helped clear all your doubts, If this article has helped you in any way please hit thumbs up and if you have any doubts please feel free to ask. Thank you!

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