An IP PBX or VoIP phone system replaces a traditional PBX or phone system and gives employees an extension number, the ability to conference, transfer and dial other colleagues. All calls are sent via data packets over a data network instead of the traditional phone network. With the use of a VoIP gateway you can connect existing phone lines to the IP PBX and make and receive phone calls via a regular PSTN line.

Companies are switching their traditional phone systems / PBX systems to a VoIP phone system / IP PBX at a staggering rate: IP Telephony equipment sales are increasing each year by more than 50% and are expected to reach $15 billion yearly by end 2009.