What is a virtual PBX?

PBX stands for Private Branch eXchange. A virtual PBX provides the same functions and features as a hardware PBX, but without the necessity of having equipment on-site. A virtual PBX is a hosted service with which a company or organization's PBX functions and telephone service are processed off-site, on their service provider's servers and other telephony equipment.

The advantages of a virtual PBX are lower initial installation costs, minimal hardware investments and a wide range of features. Most virtual PBX services put call processing features that were traditionally available only to enterprise-size organizations into the hands of small and medium-sized businesses.

Common PBX features available with a virtual PBX are call hold, call transfer, conference call, music on hold, call holding queues, auto-attendant, customized greetings for during hours and after hours, multi-layered voicemail, extensions and call monitoring.