Virtual PBX

A virtual PBX provides the core functions of a business phone system, such as answering outside lines, transferring calls to extensions, hold, menus and queues, through software running in the cloud rather than a box installed in the office. It is also called a cloud PBX or hosted PBX. With a traditional hardware PBX the equipment sits on site and the lines plug into it; an IP PBX runs the same functions on a server using internet protocols, but the business usually hosts that server itself. With a virtual PBX the provider runs the infrastructure, and the business only manages its account and settings.

How it works

Incoming calls reach the provider's platform from the carrier over a connection such as a SIP trunk. The platform then follows the rules you set, sending each call to a greeting, an IVR menu, a queue or voicemail. Staff take calls on desk phones, mobile apps or in the browser, with the audio carried over VoIP.

Why it matters

With no hardware to install or maintain, a virtual PBX is quick to roll out for small or distributed teams. Adding a team member, changing business hours or updating a menu is done from a web panel. Put an AI voice agent on top and the phone system stops being a switchboard that only passes calls along and starts handling routine requests itself; we explain the difference in What is an AI PBX?.