Traditional Phone Systems (PBX) vs. VoIP: Advantages & Disadvantages
October 22, 2015
by Heather Gwaltney

As a small to mid-sized business, you are likely approached by numerous phone providers about a variety of phone technologies.  How do you cut through the clutter to select the service provider that is right for you? 

This article provides a simple side by side comparison of the benefits and disadvantages of both traditional phone systems and hosted PBX phones (commonly referred to as VoIP), so you can select the best business phone system for your company.

Traditional phone systems defined

A traditional phone system is also referred to as a legacy system.  It runs on a physical box (“brain”) located at the company’s office, and is connected by wires to each individual phone.  These premise-based devices are dependent on the number of users and the number of outside lines required to make outbound calls.  They also require multiple cards depending on the number of users and telephone lines used. Companies with multiple locations also need multiple “brain boxes”. If the company grows after the initial purchase, a Technician has to manually upgrade the hardware to add new users.

VoIP or hosted PBX phones defined

VoIP stands for Voiceover Internet Protocol, and is a group of technologies that supports the delivery of voice communications and data over networks.  A hosted PBX phone is built on VoIP technology, and managed on the cloud, as opposed to the traditional, legacy system, which is managed on a physical computer box located on your premises.  With a hosted PBX, your provider manages your system, and provides software and feature upgrades automatically for you.

PBX vs VoIP

How GTB can help

GTB has been providing telecom voice and data services for over twenty years. All voice products are run on GTB’s private network, so that customers can receive high quality voice and a variety of rich features. GTB can service both traditional PBX and VoIP phone systems.  In both cases, because we are local, we configure your system, and provide in-person installation and training, so you don’t have to. Contrary to many providers, we manage your hosted PBX system with an individual circuit connected to your office (not over the public Internet).  In case of power outages, our VoIP service can also support business continuity, so you will never lose a call with your customers!  Learn more about our Business Phone Systems.

Also see, 6 Tips to Selecting the Best Phone System for Your Business, Choosing a Hosted PBX or Legacy Phone System, Difference between Managed and Unmanaged Hosted PBX , Why Go VoIP?, and HD Voice - The new standard of audio quality.

Get your FREE assessment

Click here or call us at 1 (877) CALL-GTB for your free assessment to see if traditional or VoIP phones are right for you.