VoIP vs. IP PBX: What is the difference?

0 Flares Filament.io Made with Flare More Info'> 0 Flares ×

transition from legacy telephony to VoIP








Recently one of our clients asked us if there is a difference between VoIP and IP PBX? Given the confusing nature of the interchangeability of some of the industry terms, it comes as no surprise that some clarity on the matter is required. For example VoIP is used to describe both the underlying technology as well as the service that businesses pay for on a monthly basis to provide telephony for their employees.

The original and fundamental definition of Voice over the Internet Protocol (VoIP) refers to the technology and standards established to allow for telecommunications to be made over a data network; but more recently that definition has been extended to encompass the service which is intended to replace the legacy telephone service. IP PBX, which stands for Internet Protocol Private Branch Exchange, is a telephone system within an enterprise that switches calls between enterprise users on local lines while allowing all users to share a certain number of external phone lines, utilising the data network (the IP part).

Traditionally, the PBX switched telephone systems hardware has been out of reach of smaller organisations due to the cost which is due to the system’s feature rich capabilities but now with the emergence of cloud technology (otherwise known as hosted or virtual), however, this is no longer the case. Hosted solutions work on the premise that larger scaled technology, such as IP BPX, is hosted in a virtual environment and then sold of as a subscription based service, or in this case, platform.

So as you can see, the two are related but different. The link can be better qualified by thinking of the relationship when provided by a hosting company offering the IP PBX service on the basis that you also take their VoIP service as well either completely or in tandem with time-division multiplexing*. Given the greater flexibility that is allowed with VoIP in that it can be utilised to deploy virtual software services across mobile, deskphone, PC and other communication devices and is ideal for smaller companies where IT expertise or capital is limited, a hosted solution may be the ideal way to transition from legacy telephony to VoIP.

To find out more about VoIP, IP PBX or hosted telephone solutions contact incovo today.

incovo telephone number





Time-division multiplexing (TDM) is a method of putting multiple data streams in a single signal by separating the signal into many segments, each having a very short duration. Each individual data stream is reassembled at the receiving end based on the timing.

Sean Lightheart

Sean Lightheart

Marketing Executive at incovo
Sean is a Marketing Executive at incovo, a leading ICT company based in central Scotland. He is interested in technology, specifically next generation applications and looks to embrace smarter living through technology.
Share the Love
Get Free Updates
  • Adela Klok

    In hosted PBX, all the equipments will be set up on the premises of VoIP service provider of your company. The business phone system will be set up in your company by him and he will be responsible for the up and running system. All the installation, operation and maintenance of the VoIP phone system will be taken care by your VoIP service provider. You need to pay the monthly fees to him. That is it! http://hodusoft.com/hodupbx/

  • PCB Assembly

    There is indeed a big difference between VoIP and VoIP PBX. However, for the small business I think telephone pabx systems are more useful and cost effective than others.

0 Flares Twitter 0 Facebook 0 LinkedIn 0 Google+ 0 Filament.io 0 Flares ×