How do business phone systems work?

Phone systems are crucial aspects of businesses and how they operate. An effective business phone system can perform required functions such as calling, holding and taking multiple calls at once, with the purpose of ensuring businesses can perform to higher levels as processes have been made simpler by the presence of the phone system. 

The technology behind business phone systems is quite intricate, however not so complex that it would be difficult for the average person to comprehend. The inherent complexity is more attributable to the numerous phone systems available, and the differences of how they function and serve the user. With that being said, a question of importance is: how exactly do business phone systems work?

To begin this discussion, it is important to understand that different phone systems have their own ways of operation. Some aspects may be similar, and some may be different. 

Systems of old such as the KSU were much more complicated than the business phone systems of today. KSU, or Key Systems Unit, utilises a central controlling device to route calls. Calls are connected manually, and the process is made simple through the use of lights to identify when calls can be taken, which line is in use etc.

The business phone systems of today run over the internet. This is made possible by VoIP, or Voice over Internet Protocol. Your voice is encoded into digital data (from analogue to digital) to travel through the internet, and this digital data is then converted back into an analogue voice signal. This is made possible through the use of codecs which encode and decode the data as well as use data compression which allows for a speedier transmission of data and a higher quality call. Your voice would be incapable of being understood if it was 100% digital, which is why the codec converts it to its analogue form so that the person on the other side of the line is able to understand. 

The effect of this process is that it reduces costs and increases efficiency, as physical lines are unnecessary (physical lines would make it difficult to make multiple calls as the number of lines are limited).

Business phone systems are usually on-premise or hosted. On-premise systems are installed at the location they are intended. They work the same as VoIP, and have the same features, with the only caveat being that all incoming and outgoing calls are managed on the premises. An example is the on-premise PBX system, which is usually managed by an IT team. 

In contrast, hosted phone systems, or cloud phone systems, have greater portability. Every competency a phone system possesses is managed by the service provider. This means that all you would ideally need for a hosted phone system are business phones and an internet connection. The added benefit of hosted phone systems is its use of the cloud. All information and processing is stored here, which disregards the need for physical storage. 

Business phone systems have inner workings that are varying in complexity but do provide insight into how different they can be, whether they are physical, VoIP enabled and/or cloud-based.

If you are interested in finding a business phone system solution for your business, enquire today.