Differences between PBX and ACD

PBX and ACD are two different types of phone systems that are often used in businesses. PBX, or Private Branch Exchange, systems are traditionally used by businesses to manage internal phone calls. ACD, or Automatic Call Distribution, systems are used to manage and route customer calls. PBX systems are used for internal phone calls, while ACD systems are used for customer calls. PBX systems are typically used by businesses, while ACD systems are typically used by call centres.

Read this article to find out more about PBX and ACD and how they are different from each other.

What is PBX?

PBX is a type of private branch exchange (PBX) system. It is a system that allows employees within a company to share a pool of telephone lines. PBX systems are often used by businesses as a way to reduce costs by sharing phone lines between employees.

PBX is a system where all the extensions are connected to one central phone line. This system is often used in small businesses where there isn't a lot of traffic on the phone line.

Advantages of PBX over ACD

One of the advantages of PBX over ACD is that it is a more cost-effective option. This is because a PBX system is able to handle multiple calls at one time, and can be leased or purchased as needed. On the other hand, an ACD system requires you to purchase new software as well as additional hardware which can become costly.

PBX also has greater scalability and flexibility than ACD, meaning it can accommodate more users depending on the size of your business. It also offers more features, such as IVR (interactive voice response) services, automated call routing, and call queuing capabilities.

Finally, PBX systems are easier to manage because they require fewer resources. With less hardware and fewer wires involved, PBX systems have fewer components that need to be managed or maintained regularly. This makes them much easier for teams who already have a limited IT staff on hand.

When Should You Use PBX?

PBX systems usually include additional features like voicemail and auto responders, they can be used to provide more detailed customer service and better organize incoming calls. On the other hand, ACD is great for businesses that are dealing with higher call volumes, as it's much better at distributing and prioritizing large numbers of calls than a PBX system.

What is ACD?

ACD is phone routing software that can be used to manage customer service operations. It helps companies to manage and track customer interactions, as well as route calls to the right agent. ACD also includes features that allow companies to measure customer service performance, and make changes accordingly.

ACD is a system where calls are routed to different extensions based on certain criteria. This system is often used in larger businesses where there is a lot of traffic on the phone line.

Advantages of ACD Over PBX

One of the key advantages that ACD has over PBX is its flexibility and scalability. Unlike PBX, an ACD system can easily be adjusted to fit the needs of an organization—allowing it to quickly scale up or down without having to invest in new hardware.

For example, if your business sees a sudden growth in calls and needs to upgrade its systems, an ACD system could be easily scaled up by adding additional software and lines as needed. And when call volume decreases, the system could be scaled down with the same ease.

Another advantage ACD has over PBX is that it gives businesses more control over both their customer service processes and their customer data. The ACD platform's advanced analytics capabilities allow businesses to track individual customer interactions from start to finish, providing valuable insights into the customer journey that can be used to improve customer experience. Plus, the automated routing capabilities mean customers are routed quickly and efficiently.

When Should You Use ACD?

ACD systems offer useful features like call queuing and automatic call routing that can help reduce caller wait times and improve customer satisfaction. This can be especially beneficial for businesses that prioritize customer service or rely on it for their success.

Finally, if your business operates in multiple locations across different time zones ACD can be used to ensure that calls are routed correctly to the right agents in each location based on time availability.

Differences between PBX and ACD

The following table highlights the major differences between PBX and ACD −




Stands for

Private Branch Exchange.

Automatic Call Distribution.

Used for

Internal Phone Calls.

Customer Calls.


Usually more Expensive.

Usually less Expensive.


Usually Provides comparatively more Features.

Usually Provides comparatively less Features.

Costumer base

Smaller customer base.

Larger customer base.


It can handle a certain number of extensions and caller.

It can handle an unlimited number of extensions and caller.

Type of Technology

An older technology that requires hardware installed in your office.

Is a newer technology that can be delivered as a cloud- based service.


Are you wondering when you should use Automatic Call Distribution (ACD) or PBX Private Branch Exchange? This answer will depend on the size of your company, the type of customer service you are providing and the volume of calls that you typically handle.

For starters, ACD is a great option if your business frequently gets a high volume of calls. It helps manage your call queue as well as prioritize and route incoming calls to the right agents, so it’s ideal for businesses that are managing large contact centers.

PBX is best for businesses that need a more personalized customer service. The ability to add on extensions and create departments for specific types of calls is great for companies that want to dedicate a team of agents to handle their inquiries.