What is PABX System? How Is It Different From PBX?

"Private Automatic Branch Exchange," or PABX, is a central communication hub that handles incoming and outgoing calls for an organization. It provides features like voicemail, conferencing, and call routing, effectively functioning as an advanced business phone system with automated call switching capabilities.

It was introduced in the 1960s, replacing the manual processes of PBX systems in businesses.

Formerly, PABX referred to on-premises systems for call routing. However, cloud technology introduced virtual PBX, today known as the modern ‘PABX’ or ‘PABX Virtual.’ It eliminates the need for on-site physical hardware and offers more flexibility, scalability, and advanced features.

Some major types of PABX telephone systems include Analog, IP-based, and cloud-based PABX systems. While Analog PABX is the much older version, IP-based and cloud PABX are modern PABX types.

Analog PABX systems are the traditional version of PABX technology. They call traffic using physical telephone lines over copper wiring that carries analog signals. Although reliable, they are less functional than more recent systems and less flexible for integrating with digital services.

Plus, setting up an analog PABX system without much technical knowledge and assistance can be difficult, as the setup process involves extensive wiring.

IP PABX systems, or VoIP PABX, use the Internet for call management. This allows businesses to make calls using Voice over Internet Protocol (VoIP) technology rather than traditional phone lines.

This arrangement provides more flexibility and significantly lowers expenses, particularly for multi-location companies.

PABX IP is best for growing businesses, multi-location companies, cost-conscious organizations, high call volume businesses, tech-savvy companies, educational institutes, remote workforce, and customer-focused businesses.

The most modern evolution, cloud PABX systems, also known as virtual PABX systems, offer greater scalability and flexibility than traditional or on-premise solutions. Since they are hosted in the cloud, they are perfect for businesses with fluctuating growth or that require a system that can be accessed remotely.

This system allows businesses to extend their communication systems without investing in costly hardware.

Cloud-based PABX systems are a flexible and potent option for modern enterprises with features like virtual extensions for remote workers, customizable call flows, do-not-disturb (DND) capabilities, and high-definition voice quality.

While traditional PBX systems require manual operators to route calls, modern PABX switchboards automate routing for better efficiency.

PABX eventually evolved from PBX by automating call routing with electrical circuits, improving efficiency and reducing the need for human intervention for call routing.
 

PABX systems offer features such as call forwarding, routing, IVR, call recording, and monitoring.

• Call Forwarding and Routing: Call forwarding and routing directs calls to the appropriate person or department. This feature ensures that no call goes unanswered and callers reach their intended destination promptly.
• Interactive Voice Response (IVR): IVR systems automate call handling by allowing customers to navigate menus. They can also provide answers to common queries without requiring a live operator.
• Conferencing and Collaboration Tools: PABX systems often include internal messaging and conferencing features, which allow teams to collaborate easily across locations.
• Mobility and Remote Work Compatibility: Cloud-based PABX systems function like office phones. They facilitate remote work by allowing staff members to connect from any location using multiple devices, such as laptops, mobile phones, and computers.
• Call Recording and Monitoring: PABX systems generally include call recording and monitoring capabilities. These are useful for businesses for compliance, quality assurance, or training purposes.
• Security and Reliability: PABX systems protect personal and business communications. They include many built-in features, including user authentication and access control, to prevent unauthorized access and maintain data integrity.

PABX phone system automates call management to save your cost, facilitates flexibility and scalability for business growth, and includes advanced telephony features to enhance customer experience and team operation.

PABX systems automate tasks that require manual handling, such as call routing, forwarding, and voicemail management. This automation reduces the need for human intervention, minimizing labor costs and improving operational efficiency.

Additionally, companies avoid the costs of maintaining on-site infrastructure and physical hardware since many PABX solutions are cloud-based.

PABX phone systems are highly scalable. You can easily add or remove phone lines and extensions without requiring major infrastructure adjustments as your business expands.

This enables companies to scale up or down rapidly, which makes them perfect for remote work arrangements or dynamic company environments.

PABX systems include advanced call management features like IVR and automatic call routing. By efficiently routing the client calls to the correct department or agent, these features lower wait times and improve overall service quality.

As such, businesses guarantee faster response times and boost customer satisfaction by optimizing phone handling.

Most cloud PABX systems can easily integrate with Customer Relationship Management (CRM) software and other business tools. This connectivity allows companies to offer individualized service, access customer data instantly, and optimize their communication operations.

For instance, the CRM-integrated virtual PABX system can display a customer's information from the CRM during the call, allowing agents to provide better support and enhance customer interaction in general.

When selecting a PABX system, consider cost, features, and scalability to ensure your solution meets your business needs.

• Cost: Consider the system's initial and ongoing maintenance and operational costs. The cost varies depending on the provider and the type of PABX you choose. Cloud-based phone system are typically more affordable in the long term.
• Features: Verify if your desired PABX system has the functions that are most important to your company, like IVR, call forwarding, and software tool integration.
• Scalability: Choose a system that can quickly grow with your business, whether adding new lines, expanding to new locations, or accommodating remote workers.

A PABX system helps manage multiple phone calls efficiently in the modern business landscape. Compared to old-fashioned PBX systems, cloud PABX systems are more scalable and can seamlessly integrate with modern tools like CRM systems. Moreover, they come with additional communication features.
 

Choose the right provider and connect your phone lines to set up a PABX system. Then, set up the extensions for individual telephones and connect them. You can install cloud-based systems easily without physical infrastructure. You can simply install the software and configure the extensions on them.

Key components of a PBX system include a central control unit, telephone handsets or devices, network connections (internal and external), and call management software.

Configure the SIP settings in your PABX system dashboard to connect SIP services. During the configuration, you’d need to provide your SIP server details, including authentication details.

The PABX system price varies based on its type and available features. Typical costs include:

• Analog PABX: $200 - $1,000+ (basic, limited features)
• Digital PABX: $1,000 - $5,000+ (better call quality, advanced features)
• IP PABX (VoIP-Based): $500 - $3,000+ (hardware) or $20 - $50/user/month (software)
• Cloud-Based PABX: $15 - $50/user/month (subscription, no hardware needed)

When we combine our PABX network into VOIP (Voice Over Internet Protocol), it is known as PABX VOIP, which becomes more powerful as it allows voice calls to be made over the internet instead of traditional phone lines, offering better scalability, lower costs, and advanced features like call conferencing, voicemail, call forwarding, and auto-attendant.