A PBX (private branch exchange) is an on-premise physical piece of hardware. It connects many landline phones in an office and can cost a huge sum of money. We are talking tens of thousands of dollars — an amount you can amortize over several years.

You may argue that analog phones cost about the same as IP phones. The exact price will differ based on the desired features.

But, onsite PBX installations are a costly capital undertaking. It can go for anywhere between $500 and $2,000 per user. So even a small business with a handful of employees needs to invest in physical hardware.

VoIP networks do away with this need for extra hardware since a broadband connection powers the service.

To ease the transition in their phone system upgrades, such organizations could use a Session Initiated Protocol, known as a SIP Trunk. A SIP Trunk acts as a digital pathway for your voice services while maintaining existing phone hardware in your office. The key benefits of SIP Trunking include lower costs, easier to manage, and you can activate service instantly.

Technology leaders use a SIP trunking provider for adding new voice capabilities to an existing phone system.