GlossaryPhones

PBX

A PBX (private branch exchange) is a business phone system that switches calls between internal extensions and the outside world; it can be a box on your premises or a hosted service in the cloud.

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  • Written by the Telxpress advisory team

01 In depth

What it is, why it matters and what to ask a vendor

A PBX gives a business many extensions behind a few outside numbers, with features such as transfers, hold, voicemail, auto attendants and ring groups. Traditional PBXs were hardware in a closet connected to carrier lines. IP PBXs connect over the network and SIP trunks; hosted or cloud PBXs run in the provider's data center as a service.

For a growing business the question is rarely whether to have a PBX but where it should live. On-site systems give control and keep internal calls working during an internet outage; hosted systems remove hardware, scale per user and connect easily to AI agents and CRMs. Many businesses run a hybrid during a transition.

Ask a vendor how long the system is supported with security updates, how remote and mobile workers connect, what it costs to add a location, how E911 reports the caller's location from each phone, and how call recording and AI features are added. If the PBX is more than a few years old, ask for a migration path rather than a repair quote.

03 At Telxpress

Where this shows up at Telxpress

The pages and articles where this term does real work: what we advise, build and support.

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Last reviewed: . Published by Telxpress, Irvine, CA.