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Ucaas vs PBX: Comparison of the communication systems

PBX, VoIP, UCaaS – the list of technical names seem to go on forever, especially when it comes to communication systems. If you've been researching alternative UC choices for your company, chances are you've compared these three communication platforms.

Ucaas vs PBX

These three systems are distinct, despite the fact that they all pertain to communication and business connection in the workplace. What is the distinction between Ucaas Vs PBX, VoIP, and UCaaS? Which networking solution is best suited to your company or organisation? Consider PABX to be an improved version of PBX (Private Branch Exchange). These words are almost interchangeable.

As businesses expand, they require more phones to help clients, vendors, and staff. However, the expenses of installing and maintaining additional connections can quickly add up. A Private Automatic Branch Exchange (PABX) is an alternative to VoIP.

What exactly is PABX?

PABX is a business solution for organisations that require several lines for internal and external communications. It enables businesses to utilise a single access number with many extensions. This is less expensive than using several landlines connected to the public network. A firm that employs PBX or PABX functions similarly to a telephone exchange. The switching activities required to connect calls across terminals are automated by PABX. That is the letter "A" in the acronym. Traditional PBX, on the other hand, requires human switchboard operators to connect phone users.

Each device connected to the exchange in a PABX system has its own extension number. Desk phones, computer modems, and fax machines are examples of such equipment. This method allows for several lines of access while only requiring a few connections to the public network. The public switched telephone network is another name for this network (PSTN). Many businesses utilise PABX to handle a large volume of incoming and outgoing calls.

What Actually PABX System is and how it works?

A PABX system is frequently owned and managed by the firm that hosts it. PABX is used by many call centres and major corporations. Auto-attendant, phone conferencing, call hold, and call transfer are all common features. 

A PABX enables businesses to use more phone units than they have real phone lines. Businesses just need to set extension numbers to each line device. Furthermore, PABX users can make free internal calls. The following basic functions and advanced features are available in most PABX systems:

  • Auto Attendant (Digital Receptionist).
  • Automatic Ring Back.
  • Call Forwarding.
  • Call Parking
  • Call Pick-up.
  • Call Queueing
  • Call Recording.
  • Call Transfer.
  • Call Waiting.
  • Conference Call.
  • Do Not Disturb (DND).
  • Direct Dial-In
  • IVR (Interactive Voice Response)
  • Ring Groups
  • Speed Dialing 
  • Voicemail

Differences Among UCaaS and PBX

The terms PBX and PABX are almost interchangeable. Both are switching systems. They're not identical, but that's fine. Consider PBX to be an enhanced version of the classic PBX.

A Private Branch Exchange (PBX) is a telephone network that is owned, managed, and used by a company. Human operators operate the switchboards used in phone lines in classic PBX systems. Switchboard operators connect wires together using their hands to complete a call circuit. This creates a POTS connection between two persons (Plain Old Telephone Service). Human-operated devices were dubbed a Private Manual Branch Exchange (PMBX).

PABX systems, on the other hand, employ computers to automate the switching procedure. That is the primary distinction.

Nowadays, the term "PBX" can apply to both automated and manual services. In the cloud, you may host an Internet-based PBX. It can also use SIP (Session Initiation Protocol) Trunking to connect to on-premises devices.

PABX functions similarly to a miniature public telephone exchange. A normal system consists of both software and hardware. Telecommunication units, routers, fax machines, modems, hubs, adapters, and switches are examples.

A firm can establish its own local phone system using PABX by employing local extension numbers. These extensions are assigned to certain phones and gadgets in the corporate premises. This method makes internal phone communication easier. In-house calls do not need to be routed outside of the local network. Users can also connect to internal networks by pressing a button. An inbound call is frequently greeted by a voice message on a PABX. This welcome is also known as Interactive Voice Response (IVR) (IVR). It generally asks the caller to dial a number in order to contact the proper department or can speak their orders. Incoming calls are routed via the PABX depending on the code or extension number.


UCaaS (Unified Communication as a Solution) is a cloud-based service that combines all of your corporate communication tools into a single platform. Unified Communications will enable your company to combine phone, data, text messages, and other messaging services with everything else it uses. Unified Communication will make it simple for you to deliver consistently high-quality customer service.

VOIP Based System

A PBX connects to the public telephone exchange for outbound calls. One or more exterior (trunk) lines are present in a conventional PBX. It is connected to the trunk line through a set number of internal lines (extensions). To make outside calls, staff and other local users must share the external lines.

VoIP-based PBX solutions are preferable. They have an infinite number of lines or extensions. Multimedia communications are also possible with the internet protocol. An IP PBX/PABX system may be built in a variety of ways. The two most common are as follows:

  • Begin from the bottom and work your way up. In this scenario, a hosted IP-based PBX system is the superior and more cost-effective alternative.
  • Modernize existing conventional (landline) phone systems. Using a SIP trunk provider, integrate existing phone numbers and gear.

To improve corporate telephone, both systems make use of an internet connection. They handle many sorts of data using ISDN (Integrated Services Digital Network). Consider both as a data network rather than simply one.


Businesses benefit from more control and flexibility over their voice activation operations when using PBX. It is a feasible internal collaboration option. It's also ideal for making and receiving phone calls.

A brief list of the top SIP trunking companies will assist you in determining which service best meets your demands and budget.