A VoIP PBX is a switch station that manages telephone calls, mostly over the IP networks, wherein all the conversations between the business users are sent in the form of data packets. It streamlines the in-house phone networks of the facilitating businesses. Therefore, the business users can share a number of lines to connect their external clients, worldwide.

As the name VoIP PBX suggests, such a system performs all the switching and connecting of the Voice over IP calls through a private branch exchange. This IP PBX or private branch exchange is quite popular among the business entities- especially the ones holding a global presence. The business entities can use the IP PBX systems for connecting all their internal phones to an external line. Therefore, a combination of an IP PBX system and VoIP phone service allows the business entities to converge voice and data networks into a single system. As of a result, it leads to cost-saving, simpler management of calls as well as greater functionality.

In general, the VoIP PBX solutions are high on technology. These systems can be used to switch calls without any trouble. The calls could be from the VoIP users to traditional PSTN users or between two traditional telephone users. One can say that it works the same way as a traditional PBS system does.

A typical IP PBX consists of a set of external phone lines, a computer server to manage the call switching, a set of internal phone lines and some form of console for manual control. Importantly, it is incomplete without one or two SIP phones, an IP PBX server as well as VoIP gateway that connects with existing PSTN lines. This helps the business users to lease only one line and have many people using it. The phone number allotted to each phone on this system depends upon the internal numbering. Usually, numbers on the internal lines vary from three to four digits and are often referred to as extension numbers.

Moreover, in the IP PBX VoIP systems, the business users are able to enjoy various advanced features such as call logging, call conferencing, voice mail, answering services and many more. In the market, there are many IP PBX systems and most of them deliver various benefits such as:

1.Flexibility: These systems offer flexibility to deliver voice traffic to virtually any location.
2.Lower cost of ownership: The business entities can save on their communication expenditures. As matter of fact, the users are able to enjoy long distance calls at significantly low rates, as overhead administrative costs can be ignored.
3.Next-generation business applications: These systems are technically empowered to deliver the best services- in terms of voice quality- to the users.

The business entities migrating to the Internet telephony solutions require IP PBX systems for communication. This is because communication over this advanced systems come with benefits such as cost efficiency, scalability, manageability as well as performance advantages.