A virtual PBX (private branch exchange) is a type of telephone network that is used within a company or organization. The users of the virtual PBX phone system can communicate within their company or organization and the outside world using the internet, typically voice over IP (VoIP) technology.
A virtual PBX also allows you to have more phones than physical phone lines (PTSN) and allows free calls between users. It also provides features like transfers, voicemail, call recording, interactive voice menus (IVRs) and ACD call queues and more.
Traditionally, PBX business phone systems are usually much more flexible than proprietary systems, as they are using open standards and interfaces. Modern PBX phone systems use standard hardware, which is less expensive and can easily replace than closed systems.
By Using the Internet to deliver enterprise-grade services, companies can take advantage of some of the key benefits:
Lower monthly recurring costs
On average, business phone lines can range anywhere from $45-$80 per month based on minutes used, long distance calling areas.
Eliminate maintenance and upgrade expenses
Many companies use 3rd party support consultants to support their PBX and pay extra fees to do so. Hosted PBX phones are easy to use and be programmed by existing staff.
Low up-front costs
Hardware-based PBX (traditional or hybrid) systems can cost anywhere from $5000 through $20,000+ to install, wire, and program.
Seamlessly connect multiple locations
Whether you’re a large multi-site corporation, or a virtual company comprised solely of telecommuters, a hosted PBX can give instant communications between offices and employees at no cost.
Fail-over provides an always available solution
Because all the main menus, voicemail, and extensions reside outside of your office, even if you lose power or your Internet connection your external callers will still get your main phone menu – every time.
Streamline calls with IVR Menus
A standard feature with hosted PBX is the ability to have multiple IVR Menus. Easily direct callers to the correct departments and end users within seconds of their inbound call starting.
Other types of business phone systems are:
- Traditional Business PBX
- Hybrid PBX Phone Solution
- Hosted / Cloud-Based Phone Solution
Read our Business Phone systems 101 to learn more.