What Are PABX Systems (Private Automatic Branch Exchange)?
Private Automatic Branch Exchange (PABX) pr Private Branch Exchange (PBX) is a business telephone system that connects several devices with each other and the public telephone network. Other names include switchboard, and can be implemented onsite or offsite, commonly referred to as Cloud PBX or Hosted Phone system.
Phone systems offer many features that make communicating more convenient, efficient, and cost-effective, and today’s phone systems support a range of applications which can be used across the web, PC and even mobile phones. Thanks to the internet, VoIP-based phone systems have also been instrumental in enabling and supporting new ways of working, such as Work From Home (WFH) or the need to have remote call centre agents.
Whether you’re in the market for a small business telephone system or a corporate phone system that packs a punch, is centrally located or in the cloud, you will need a trusted, qualified partner who can understand your business and get you the right solution.
Different VoIP-based Business Telephone Systems, aka Switchboards
At its core, a phone system is a phone system — many do the same things, although some have a few things it does more or differently.
Most business telephone systems can be built or configured to provide the relevant functionality for your specific business and drive your desired outcomes, such as increased productivity, mobility, and customer satisfaction.
Knowing which system is right for you depends on:
👁🗨 Your company strategy
👁🗨 Buying policy
👁🗨 Industry compliance
👁🗨 Budget etc.
Choosing a business telephone system is a consultative process; therefore, we can’t rule on whether an IP PABX or Hosted PABX would be the best system for you. We can tell you that the right partner will work closely with you to understand more about your business dynamics, vision, and strategy. They will guide you to the option that best aligns with this.
Before we introduce you to the different VoIP-based telephone systems, we acknowledge that there are other solutions and platforms in the market. However, most vendors only sell VoIP-based phone systems that can be supplied in physical form or as a hosted service.
Although most businesses prefer to go for hosted platforms, most of the market still uses on-site platforms. Many medium- to large market players still prefer buying and managing dedicated business telephone systems rather than hosted options.
IP PABX Systems vs Hosted PABX Systems
| Feature | IP PABX | Hosted PABX / Cloud PABX |
|---|---|---|
| Common upgrade from traditional PABX | Yes | Yes |
| Software-Driven | Mostly software-driven | Delivered entirely as a hosted service |
| Hardware Requirements | Provided on a set hardware device based on your configuration | No dedicated hardware required |
| Software Installation | Can be provided separately and installed on a standard computer server | Not applicable – managed entirely by the service provider |
| Licensing and Scalability | Built and/or licensed according to your requirements (users activated as needed) | Pay-as-you-use model; no ownership, and users are activated as required |
| Upfront Costs | Purchase what you need upfront | No upfront costs – included in monthly service fees |
| Installation Location | Can be installed on-site (at your office) or hosted off-site (private cloud deployment) | Hosted off-site by the provider |
| Shared or Dedicated | Dedicated to your business | Shared system across multiple customers and users |
| Ease of Use | Requires some technical management | No hassle or technical complexity – fully managed by the provider |
| Cost Model | Pay upfront for hardware/software; upgrades may cost extra | Monthly service fees usually include service and upgrades |
| Flexibility | Possible choice of on-site or private cloud deployment | Quick and easy connection, accessible from anywhere with chosen devices |
| Features | Configured based on business needs | Typically offers all necessary business features |
Why an onsite IP PABX System
💥 Predictable Total Cost of Ownership (TCO)
💥 Connects to traditional PSTN Telkom lines
💥 Choose your telco provider/s
💥 Own the equipment
💥 Manage it yourself if you want
💥 Connect legacy analogue devices like fax machines
💥 Increased redundancy and resiliency options
💥 Doesn’t need an internet connection to work
💥 Can be hosted on-site or off-site
💥 Define the required Service Level Agreement (SLA)
Why a Hosted PABX System
💥 Lower capital outlay
💥 Usually quick and easy to set up and install
💥 License only what you need and pay monthly
💥 Manage it yourself if you want
💥 Add features and functionality when needed
💥 All-inclusive cost per user
💥 No annual license or software renewal costs
💥 No individual upgrades necessary
💥 Same features for everyone and uses the latest version
💥 Fail-over and backup capabilities included
7 things to consider before taking the leap to a PABX System
1. The functionality you use and need in a telephone systems solution
Having a well-defined list of your short- to long-term business goals and objectives, the current business telephone systems and channels in your business, and how you want to buy/pay for those solutions are important factors to consider before embarking on your PABX System journey. You could even consider developing a formal Request for Proposal (RFP) specification or appointing a consultant to develop and manage this process for you.
Take the time to write down all the functionality your business currently uses and requires in a new system.
2. The exchange rate might affect your price
Depending on what you buy, what you are quoted will have a validity date and may not be fixed for the duration of your agreement with the vendor. This is usually the case for products and services sourced from international vendors.
Keep an eye on the exchange rate on anything you have to import from your PABX System vendor.
3. Your existing contractual obligations
The last thing you want to do is sign a new contract with a vendor, only to discover that you’re going to sit with double the costs! It’s worth the investigative effort.
Pull out your old contracts and look at the agreement terms, early settlement penalties, or applicable cancellation fees.
4. The cost of moving your phone numbers to a new PABX System
As you move telephone systems, you may move phone line providers too, so consider your phone service as a separate element. Most businesses have numbers they have used for years, and they need to keep these numbers when moving to a new phone system. Thankfully, all SA phone numbers can be moved or ported between providers.
Make a complete list of all the phone numbers your business uses and share this with your provider. They will advise how they can keep these numbers. Just be sure to check the cost to port each number between networks.
5. You need a good internet line for a successful VoIP connection
When moving away from traditional PSTN fixed lines (analogue or ISDN) over to VoIP, you need to assess the impact that adding additional bandwidth will have on your internet line and service. Most businesses share the same line for internet, email, etc., which can cause a bad voice connection.
Carefully plan how to set up your internet line so that voice takes priority over other traffic. You might also have to increase your line speed and data allowance so VoIP can run optimally.
6. Your network may need to be configured to run VoIP optimally
Anything based on the internet deeply relies on an internal and external internet network. Therefore, buying a new PABX system and phone for VoIP is not quite as simple as plugging everything in and walking away. Internal reconfiguration may be required, and firewalls must be made aware to prioritise voice traffic. Your cabling and power infrastructure must also be compliant.
Ask your phone system provider for a detailed rundown of the prerequisites and best practices for running VoIP and IP telephony before you sign up to avoid unexpected investments to upgrade your network and other elements thereof.
7. You need power to run your telephone systems
Unlike traditional legacy devices, any phone for VoIP requires power to run. Power can be provided by buying a local power adapter or through your LAN as long as it supports Power over Ethernet (PoE). Thanks to Eskom, power can be hard to come by, but most business telephone systems these days are shipped with a power adapter.
Understand what your environment requires in terms of power and plan accordingly.
FAQ about PABX Systems in South Africa
👁🗨 What costs are involved in a PBX System?
Work with your chosen provider to understand all the FIXED and VARIABLE costs involved in receiving the service for your business. Also, ask what costs apply at the different stages of your partnership.
- Fixed costs are usually line rentals, subscriptions, hardware, and Service Level Agreements.
- Variable costs are usage-based or ad-hoc services, including any out-of-bundle charges.
- Start-up or setup costs relate to any service activation, installation and provisioning, training and hardware required for the service.
Note: If there are no setup or hardware costs, make sure you understand if you are liable for any of these costs at any stage of the partnership. - Subscription costs are the anticipated costs for using the services.
Note: Understand what other costs may
come into play and ensure you agree to those costs upfront. - Conclusion and Exit costs are any costs due at the end of the agreement term.
Note: Ask what happens and if there is a cancellation notice period or automatic renewal. Also ask what happens to the hardware and if there are any fees for removing the equipment or infrastructure.
Having clarity and complete transparency on all costs will help you compare apples with apples and ensure you won’t get any unexpected surprises.
👁🗨 What support is there for Bring Your Own Device (BYOD)?
One of the biggest value propositions for next-generation communication platforms is compatibility and interoperability. The devices you buy now should be compatible with other telephone systems, and you should consider the phone system’s provision for connecting devices from third-party vendors.
BYOD extends beyond VoIP phones and conference devices to mobile phones and personal computers. In an ideal world, you should have many options for whichever device you use (and from whichever provider), and you should consider it an investment that will move with you, irrespective of whether you end up changing your PABX system in the future.
👁🗨 What is the lifespan of a Business Telephone System?
Knowing how long a product has been proven to last is vital in understanding future costs. On one side, you may be expected to subscribe to an additional annual software upgrade and support programme. In other cases, all costs are included in the subscription fee.
If you have bought hardware, find out the past failure rates, the warranty, and what is included and excluded. Hardware has a lifespan, so it’s vital to understand what happens when the manufacturer decides to stop making your device. Ask questions like:
- What is the upgrade path?
- How long will my hardware still be supported?
- Until what point will the manufacturer have spares if needed?
Good to know: Usually, you need to include your telecoms equipment under your office insurance.
👁🗨 What Unified Communications (UC) Applications are supported?
With business and sales becoming global and virtual, workers are no longer localised in one particular space. The tools your business may need in the future to keep your stakeholders connected to your business may include having everyone work from their mobile phones or laptops at home!
👁🗨 What features are included with my PABX System?
Features differ between providers and phone brands, so it’s important to understand what features and functionality you get with your package or platform and what is an optional extra. With optional extras, find out what affects the pricing, such as additional integration fees, SLAs or fees impacted by the exchange rate.
Although you may assume that you’re already aware of all the costs involved in using another telephone system, it’s important to understand what functionality your business needs now and in the future and if those are included.
👁🗨 What are the cancellation or renewal terms of my PABX system?
Always read and understand the full service terms and conditions, which will state the contract duration, renewal and cancellation terms. Place particular focus on notice periods, automatic renewal clauses, and fees associated with renewals and cancellations — especially when new equipment was provided at no direct cost to you at the start of your agreement.
👁🗨 What service and support can I expect?
Most of the time, everything should work as expected, but when it doesn’t, you will realise the real difference between providers. A Service Level Agreement will give you a clear understanding of how you can expect to be supported for each service.
It is extremely important to research various providers before making your decision! Read past customer reviews and see what their customers say about them online, and don’t be shy to ask for references that you can contact.
Network uptime and guarantees
Make sure you understand the network your provider has built or manages. Ask what network redundancy and resiliency are in place and what uptime guarantees there are. If these are important to you, they will also be important to the provider.
Network and device monitoring
Find out if your chosen provider monitors your connection and the hardware required. Will they know about connectivity issues before you do? And what happens in the case of faulty hardware? What will it take to restore services, and who will pay for the collection, delivery, and provisioning?
Other questions you may want to ask your provider include:
- What are your coverage hours?
- How can I contact support?
- How long will you take to respond to my request?
- How long will it take to resolve my issue?
- Is there a cost for support? When do costs apply?
- What happens if I am not happy with the level of support I receive?
Compare Phone Systems and Providers
Telephone systems technology has advanced rapidly, and the available options have increased substantially, along with customisation capability. With all these available options, it becomes significantly more difficult to decide which PABX System is the right one for you.
WhichVoIP removes the complexity and makes it easier for you to make an educated buying decision by helping you find the right PABX system at the best price for your needs.
4 things to consider when choosing the best phone system provider for your business
✅ Look at some of the most accomplished phone system providers that have proven themselves in the market
✅ Compare price, features, integrations, customer service, and reviews.
✅ Consult and work closely with your chosen provider
✅ Provide them with a good understanding of your environment, goals, objectives, and budget for a turnkey solution that will meet your specific requirements.
