How does Virtual PBX work?

A PBX (Private Branch Exchange) is denotes a piece of hardware that business organizations have traditionally used for communication purposes.

A Virtual PBX may be described as a phone system that is hosted by a service provider and the user is not required to buy or install any hardware at his business premises. It can be said that when you opt for a Virtual PBX, a telephony system is provided through an Internet download and that is managed by an outside service provider.

The Virtual PBX system is operated and wholly maintained by the service provider and the provider company assumes total responsibility freeing you to concentrate on your core business activities. This apart, the virtual PBX or hosted PBX offers a variety of highly useful features absent in any traditional or conventional PBX system.

PBX was initially introduced to enable business houses to manage their phone communications through in-house operators. Today, beyond just facilitating voice calls, PBX systems also connect fax machines, computer modems and other types of technology that transmit through phone lines.

The integration of voice telephony with digital data gave birth to the VoIP (Voice over Internet Protocol) PBX. Businesses enjoying VoIP facility were interested in using PBX systems, but could not afford the cost. This led to the concept of hosted or Virtual PBX system. With hosted VoIP, even a small or midsize business can benefit from a comprehensive VoIP system without having to buy hardware or hire staff to keep that system working.

With a Virtual PBX, all incoming calls are invariably answered on the service provider's hosted PBX equipment. Callers place calls from any phone, and then the calls are routed over the Public Switched Telephone Network (PSTN) to the Virtual PBX system.
The Virtual system answers the calls with a recorded greeting, plays a menu of connection options to the callers, and then routes the call to the appropriate extension.

Among a number of other benefits, virtual PBX requires no special training to operate and as such, it requires lower startup costs for any business.

Virtual PBX providers are today offering a host of features including auto-attendant, messaging, different types of call-forwarding, call-waiting options, speed dialing etc. Virtual PBX also provides sophisticated features that are unique to the integration of the phone and computer.

The integration of voice and data features can prove a veritable boon for any business enterprise. Since virtual PBX services host video, voice, and data conferencing, the user organization can achieve remote collaboration without incurring additional costs on software or hardware. Moreover, virtual PBX system offers an online method of tracking call data, which can help with billing and budgeting.

Virtual PBX has other advantages. The control panel for a phone system is accessible from any computer anywhere that has Internet access. Changing extensions, forwarding lines, and setting up voicemail require no more than a few mouse-clicks.
Furthermore, if a business moves, there is no PBX equipment to move, no phone numbers to change and hence no disruption of communications.

Virtual PBX systems are the order of the day and more and more business houses are switching over to Virtual PBX systems eliminating the bother of running a PBX.