What is a Virtual PBX?

A Virtual PBX is a private branch exchange; a telephone switching system that routes calls based on user parameters created during installation and setup. This differs from a physical PBX in several ways, but performs the same functions.


Businesses use PBX for auto-attendant, time of day or day of week settings, or find me/follow me sequences. PBXs can be used for hunt groups or pre-determined sequences. For example, a user may want it to ring to a receptionist first. If no one answers after 2 rings, it will transfer to a secretary. Another 2 rings and it will transfer to an assistant. If neither answers, it can transfer to the owner. All of these settings are customizable.

PBXs also serve as auto-attendant with customizable answering menus and sub-menus. The user can change what prompts to dial and which person or department they lead, as well as where to transfer which calls based on the day of the week. PBXs are used in nearly every major business for advanced call routing purposes.


A virtual PBX is generally more cost effective than a physical PBX, due to the lack of capital expenditures required. Virtual PBXs are generally operational expenses, and hence are a low monthly charge, rather than a massive up-front cost. This generally makes a virtual or hosted PBX a more cost effective option than a traditional PBX.

PBXs are a vital tool for any business that makes or receives even a small volume of calls. Effective call routing from a virtual PBX can increase the efficiency of a business considerably, as well as streamline communications between multiple locations or multiple personnel within the same office. It also can save your business money on capital expenditures and increase customer satisfaction in telephone interactions. This makes the virtual PBX a must-have for any legitimate business that uses phones as part of their communications.