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SIP VS. VOIP VS. PBX – WHAT’S THE DIFFERENCE?

One of the most important factors that you should consider when it comes to understanding the various features of a phone system is its role in your telecommunications format. But rather than pitting them against one another to determine a winner, the better approach is to learn the basics of business communication and how the systems work together to make safe connections across vast networks.

Due to the massive amount of data that is transmitted across the world, it’s very important that businesses have the proper communication connections to prevent disruptions from developing. This is the main reason why various technologies such as VoIP, IP phones, and traditional phone systems are being widely used together in the business world.

SIP, VoIP, and PBX can help you to establish direct contact while communicating over different networks.

Session Initiation Protocol (SIP)

Session Initiation Protocol is a set of standards that allows people to connect to various devices and organizations over the Internet. One of the most important components of this technology is the signaling that occurs between the devices when they’re trying to establish a connection.

The signaling protocol, which is sometimes referred to as “SIP trunking,” helps locate a device before it makes a connection. This ensures that the other party is listening, and it allows data to be transferred in either voice or video formats. With the use of the session initiation protocol, people can now communicate with each other regardless of their device, such as their computers, phones, or tablets.

A key component of cloud telephony, SIP allows businesses to take advantage of the power of VoIP.

Voice Over Internet Protocol (VoIP)

VoIP (Voice Over Internet Protocol) is a broad term that covers any phone call placed over the internet. VoIP describes the action used to digitally transmit the voice and/or video signal to another telephone source using the SIP ‘protocol’.

The most basic functions of VoIP requires a VoIP-enabled phone and VoIP software. These essential tools enable you to make and receive calls over an internet connection.

A VoIP setup gives you the opportunity to have an official business line of communication for your company, no matter where your team is located. This is accomplished by using well-known applications, such as MS Teams, Slack, or Google Talk, while also having the capability to apply IP-enabled PBX hardware.

Private Branch Exchange (PBX)

Private Branch Exchange or PBX is a business-grade phone system with features that enable internal and external communication. Features include extension dialing, hold music, waiting queues, call re-routers, and call conferencing. You encounter them when you place a call to a business with an automated answering system. PBX connects colleagues in a work setting and to the outside world.

Analog PBX predates the internet and falls short of modern-day phone system needs. However, the current era of communication signals the arrival of hosted PBX. This puts your phone system “in the cloud,” instead of a telecom closet.

A hosted PBX is maintained by service providers, connecting businesses via the public internet with the help of SIP trunks. The hosted PBX rids a business’ bottom line of maintenance costs, while eliminating software upgrades and service downtime.

Conclusion

SIP, VoIP, and PBX are interconnected. By working together, a hosted PBX service uses SIP to connect to VoIP endpoints, like a VoIP telephone or an app on a mobile device. In short, these three services work together to close the loop on business communication.