VendorGuru - Office Phone Solutions - the differences between Office Phone Systems and Services

Aug 27, 2008

Office Phone Solutions - the differences between Office Phone Systems and Services

by Don Panek

Today, businesses use one of four major types of office phone systems, no matter the company's size. When looking for a new office phone system it's important to understand each of these four major services and the differences among them.

Private Branch Exchange (PBX) Business Phone System
Arguably the oldest type of office system, the PBX is still in wide use today. Typical PBX systems are used by companies with 50 or more employees. Older PBX systems filled entire rooms with cabinets of equipment, but today they can be small enough to fit under a desk. A typical PBX system is fully programmable and usually comes standard with a hundred or more features--including pretty much any functionality needed--from auto attendants to wake-up calls. If a feature rich system is a high priority requirement, then a PBX is probably the first place to look for the solution. PBX systems can be very expensive to purchase and maintain, so many businesses opt for the more affordable hosted PBX.

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Key System Unit (KSU)
Companies that require the functionality of a PBX, but have between 5 and 50 employees, can opt for a KSU system. A key system uses a centrally located control unit for managing calls. This control unit provides available features and allows users to perform phone tasks not available on typical phone systems, such as answering other extensions, blocking extensions that are in use, and many other features that typical businesses need. The key system however is not as customizable as the PBX, and it's therefore limited to standard features.

Both PBX and KSU office phone systems require installation, support and maintenance by specialized service providers and can be costly to maintain. All outside phone lines as well as individual phones must be wired to the main control units.

Key-Less or KSU-Less System
Companies with less than 10 employees can take advantage of the significant cost savings provided by a Key-less system. These systems provide many of the most desirable phone features in a de-centralized manner. Each phone, often referred to as 2 or 4 line phones, contain all of the circuitry required and therefore eliminate the need for a central unit. These phones are easily moved from office to office making them assets rather than expenses. The drawback is that the system is not easily expandable, and many of these phones are incompatible with other devices like faxes and modems. Also, KSU and PBX pricing have significantly dropped over the years, making the key-less systems less beneficial.

VoIP System
The final and newest type of system uses Voice over Internet Protocol (VoIP) technology to route phone calls over data networks instead of traditional phone lines. For many companies, VoIP business phone systems can provide significant cost savings and other benefits. A VoIP system can be as large and complex as a PBX system--including programmable features, integration to other office software and equipment--or as simple as a single VoIP phone connected to a broadband router and PC.

For many businesses, choosing the right office phone system comes down to a matter of cost and functionality. Today, with prices falling and technology continually improving, the lines between all systems continue to blur. Business owners and decision makers need to take time to carefully research each system type, available options and costs, and then weigh those against the short and long term needs of the company. When it's time to choose, the advice of experienced vendors and service providers like Nortel, Vocalocity, Inter-tel, Packet8, and Speakeasy can be invaluable.

About the Author
Don Panek is a Microsoft CRM Specialist and technology writer. He has 5 years experience with CRM systems, and over 20 years experience designing, building and specifying telecommunications, telephony and networking solutions. Don has an engineering degree.


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