IP-PBX can be viewed as a conventional PBX that can accept and handle VoIP calls. An IP-PBX can also switch calls between a VoIP user and a traditional telephone user, or between two traditional telephone users in the same way that a conventional PBX can. While traditional telephone system requires for segregation between voice and data communications, IP-PBX however converges both data and voice networks. Hence, the availability of a Broadband line will enable use of the same line for not just data (emails, internet access) but also voice (VoIP / VoB) enabling great cost savings to phone calls.

While it looks alike a normal server, IP-PBX are installed with phone cards and other electronic cards to ensure that it has the features of a legacy PBX coupled with the support of VoIP calls. It will act as a device to route between VoIP and PSTN calls based on numbers keyed into the IP Phone.

IP Phones are used in conjunction with the IP PBX to enable users to accept as well as make VoB and PSTN calls.

Companies are encouraged to deploy this system as increasingly this technology will be adopted by users all over the world. At a certain point, regardless of geographic location, all companies will be able to communicate with counterparts as well as colleagues for free – so long as they are inter-connected via the same network by use of extension numbers.