The PBX Evolution

The term PBX refers to a Private Branch Exchange.Asterisk, an open source PBX, is touted as the world's
A PBX is sometimes called a telephone switch,most flexible and extensible telephone system. It
business telephone system or phone switching device.provides many features that compete with or exceed
The term PBX is synonymous with Electronic Privatethe power of proprietary telephone systems. In
Automated Branch Exchange (EPABX) and Privatekeeping with its open source concept, The Asterisk
Automated Branch Exchange (PABX). It is similar to asoftware is free and runs on relatively inexpensive
central office exchange but usually much smaller andLinux servers.
privately owned. A central off exchange canNew technologies such as Voice over Internet
accommodate 10,000 subscribers. PBX systems areProtocol (VoIP) are blowing away the covers from
typically designed to accommodate from 10 to 10,000traditionally proprietary devices. This technology takes
subscribers or extensions. A PBX is like a centralanalog audio signals and converts them into digital form
office exchange for a single building of cluster offor transmission. Transactions are much more efficient
buildings. A PBX can handle many phone lines into orsince analog lines remain connected even during
out of a particular location. Most advanced PBXs canperiods of no communication. VoIP packets are sent
facilitate both voice lines and data lines, route calls toand received whenever there is activity. The
other offices and to the public telephone network. Withinformation packets are sent over any open rather
a PBX in place, each phone only needs an extension,than a dedicated line making communication much
not a phone number, and the PBX handles all callsmore effective.
made between individuals within the company.Most companies can recognize huge savings using this
The primary intent of a PBX is to route incoming callstechnology. The compression of the information and
to the appropriate extension within the office and tomode of delivery across multiple channels and routers
share a group of phone or "trunk" lines betweenmakes packet switching more efficient, quicker and
extensions. When an outside call is required, an accessless expensive. The volume of simultaneous
number is dialed (example "9") to access an outsidecommunication can be significantly increased using
trunk line. The PBX then transfers the call to the phonepacket switching over circuit switching.
company's Central Office. The telephone companyThe major manufacturers of PBX equipment have
then forwards the call to the desired number in thecontributed millions to their research and development
outside world.budgets to produce solutions that allow customers to
Over time, PBXs have become far moreefficiently migrate their traditional PBX. Some are
sophisticated. Many facilities and functions have beencleverly providing bridging solutions such as hybrid
added to create a centralized communication hub.PBXs that include traditional TDM and VoIP capabilities.
These services include automated attendant greetings,"We recently talked with 450 companies in North
recorded messages, interactive voice response,America about their voice infrastructure plans, and the
connection to voice mail, automated call distribution, callresults clearly indicate a steady move to VoIP, which
forwarding, wireless services, conference calling andwill put this market on a nice steady growth trajectory
many more.over the next few years.", said Matthias Machowinski,
A major advantage of a PBX is control over thedirecting analyst at Infonetics Research after the
numbers that can and cannot be dialed from within therelease of their Q1 2006 report.
system. A properly configured PBX can restrictAccording to Infonetics Research, annual revenue in
access to certain costly numbers, such as directorythe combined PBX market is forecast to grow to $11.4
services or 900 numbers, to authorized personnel only.billion in 2009, driven by strong IP PBX sales worldwide
A major savings also results from the ability of theas more organizations move to voice over IP.
PBX to share a group of lines among manyBetween 2005 and 2009, IP PBX revenue is forecast
extensions. For example, an office with 100 extensionsto jump 82% while TDM revenue plunges 88%.
can often be served by 10 to 15 lines. This results inAccording to a statement by In-Stat analyst Norm
huge savings from having to provide a line to everyBogen, "The IP PBX is revealing itself as more than a
phone in the company.simple one-for-one replacement vehicle for digital
Some of the most well known PBX manufacturerssystems. With closer ties to data, this new vehicle is
with huge customer premise installations includeinfluencing corporate power structures and will
Avaya, Nortel, NEC, Siemens and Alcatel. Theseultimately have even more far-reaching effects on
manufacturers have dominated the telecom space forhow business is done around the globe."
many years. However, a new crop of IP PBXCommunication managers need to wade through
systems is entering the market packed with similar ororganizational challenges including infrastructure,
enhanced features at much less cost. In fact, thesefinancial and educational. The PBX is transforming itself
new communication servers can reside on a computerto meet these ever changing needs.
processor running low cost operating systems.