Private Branch Exchange

PBXs make connections among the internal telephones of a private organization — usually a business — and also connect them to the public switched telephone network (PSTN) via trunk lines. Because they incorporate telephones, fax machines, modems, and more, the general term "extension" is used to refer to any end point on the branch.

IP-PBX

An IP PBX handles voice signals under Internet protocol, bringing benefits for computer telephony integration (CTI). An IP-PBX can exist as physical hardware, or can carry out its functions virtually, performing the call-routing activities of the traditional PBX or key system as a software system. The virtual version is also called a "Soft PBX".

The VoIP PBX, also known as an IP-PBX or IPBX, which uses the Internet Protocol to carry calls. Most modern PBXs support VoIP. ISDN PBX systems also replaced some traditional PBXs in the 1990s, as ISDN offers features such as conference calling, call forwarding, and programmable caller ID. However, recent open source projects combined with cheap modern hardware are sharply reducing the cost of PBX ownership.

For some users, the private branch exchange has gone full circle as a term. Originally having started as an organization's manual switchboard or attendant console operated by a telephone operator or just simply the operator, they have evolved into VoIP centres that are hosted by the operators or even hardware manufacturers.

Historically, the expense of full-fledged PBX systems has put them out of reach of small businesses and individuals.

With the pickup of VoIP by consumers, of course consumer VoIP PBXs have seen the light, and PBX functions have become simple additional features of consumer-grade routers and switches.

Open source projects have been available since the beginning of the 90s. These projects provide flexibility and features, plus the means to actually inspect and change the inner working of a PBX. They have also opened business opportunities for newcomers to the market of mid-size PBXs, since they have lowered the entry barrier for new manufacturers.

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