Simple home-based PBX systems offer basic features as an upgrade to existing traditional phone lines.

This saves the company money because it requires only a single phone line.

The IP-PBX

PBXs changed a lot with the advent of IP telephony (VoIP).

VOIP Phone (IP Phone) in data center room

VOIP Phone (IP Phone) in data center room.Yanawut / Getty Images

The newer IP-PBXes use the internet to channel calls.

IP-PBxes are usually preferred because they offer many features.

These services are cloud-based and delivered via an internet connection.

Operator of call center working

Bhavesh1988 / Getty Images

FAQ

An IP-PBX phone system stands for Internet Protocol Private Branch Exchange.

This system combines the functions of a PBX withVoIP callingto relay audio and video over the internet.

A digital PBX is another common term for IP-PBX or VoIP PBX.