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PBX stands for Private Branch Exchange, whereas PABX stands for Private Automated Branch Exchange. In the traditional sense, PABX systems operate on a private telephone network. There are no phone providers, and the company usually owns all the equipment.

With hosted PABX systems, they provide greater efficiency than a PBX system. PABX systems can automate calls. Thus, functions like call routing, forwarding, and voicemail become much easier.

The cost for a PBX system will vary widely depending on the type of PBX phone system you’re using and the number of phone lines you need. The cost of a physical PBX phone system can be up to AUD 1,000 per employee line. Choosing virtual or hosted PBX systems can significantly lower the costs as it eliminates installation and wiring costs.

VoIP stands for Voice over Internet Protocol. The phone line is connected to an IP network, and calls are sent and received over the internet. VOIP phones are more reliable than traditional telephone lines and also much cheaper.