The world is evolving rapidly, and it can often be tough for small business owners to keep up with all the changes in the technological landscape. Virtual phone services are the newest trend to reshape the telecommunications space and business owners need to compete in today’s competitive landscape. Here is a look at everything you need to know about the difference between a virtual phone service and a traditional phone service.
What is a PBX System?
A Private Branch Exchange – or PBX System – is the traditional telephone system used in a company. This type of system allows users to share one or several outside lines that make it cheaper and more convenient than having a new line for each phone. This is the standard business telecommunication system that has been used by businesses since the days of switchboard operators. PBX systems can be useful for large organizations that need dedicated phone lines for many employees. However, PBX systems can be quite complex and require a technician to install and set up. They traditionally rely on a physical phone line and therefore are not particularly flexible or easy to move or scale.
What is a Virtual Phone Service?
Virtual phone service is a phone line that is not linked to a physical line but rather uses the internet to receive and forward calls. This allows for greater flexibility than a traditional phone line and offers users numerous benefits. Virtual numbers are typically more cost-effective than a PBX system and do not require access to a physical line, only a Wi-Fi connection. They offer features that are designed to help small businesses, such as toll-free, vanity or local phone numbers, automated attendants, custom greetings, detailed call reports, and more. Virtual phone services are perfect for smaller businesses and independent entrepreneurs who want more flexibility and affordability out of their phone systems.
What are the Key Differences?
The biggest difference between PBX Systems and virtual phone services is that the former uses physical phone lines to process communications, while virtual phone lines rely on the internet. There are pros and cons to both systems. PBX Systems won’t fall victim to weak Wi-Fi and offer stability and predictability — however, they can often be less flexible and more expensive. Virtual phone lines allow you to answer calls anywhere there is Wi-Fi and often include innovative features that can increase productivity. But if you can’t get access to the internet, it can be difficult to field important communications. Which system makes sense for you depends on the needs of your business. But virtual phone services can be an affordable solution for those looking to cut costs.