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What Is A Virtual PBX System?
A PBX system, and type of PBX system, is a voice communications management system that allows internal lines to be connected via extensions, and the internal lines to be connected to one (or more) external lines. A PBX system does not require each telephone to have its own external line but does require that each telephone have a unique identifier – an extension – that allows calls to be routed to that telephone. PBX systems are installed by businesses to make their voice communications more efficient and to save money by creating an internal network that does not require separate telephone lines and to combine internal lines to use fewer external telephone lines.
A traditional PBX system uses hardware to create the combination of internal lines and external lines. It essential works like a funnel, where the multiple internal lines are connected to a box which leads to fewer external lines – sometimes only one. These hardware based systems are effective but expensive; limiting their use to large companies and government agencies.
A virtual PBX system, by contrast, requires no hardware, only software. A virtual PBX system can handle VoIP lines or traditional phone lines. What makes the PBX system a virtual PBX system, also known as a soft PBX, is that the controls are done by a software program rather than hardware. The software program can be an open source program, and there are many of these, or it can be provided by a telecommunications company. A virtual PBX system can be hosted on-site or can be hosted by a telephone company. If the virtual PBX system is hosted by a telephone company it is called a hosted virtual PBX system.
Virtual PBX systems offer flexibility. Rather than having to install hardware for each new line, maintain hardware, and have technicians on-site, the virtual PBX system requires a computer program. The computer program handles the functions of including new lines and excluding old lines. The computer program handles the connection of internal lines to external lines. The computer program generally needs to be located on a dedicated server, as the maintenance of the virtual PBX system by the program requires dedicated computer time.
The flexibility of a virtual PBX system makes it ideal for all companies, large and small. A larger company will benefit from a virtual PBX system because it will reduce their dependence on hardware and eliminate the need for dedicated telephone technicians. A smaller company will benefit from a virtual PBX system because it can save money on internal calls and actually use a PBX system, where if they were required to use a hardware-based PBX system the cost would price out small companies.
Larger companies will benefit from having their virtual PBX system hosted on-site. This is largely because a larger company can make an investment in the virtual PBX software that a small company might not be able to make. A smaller company can either use open source technology or have their virtual PBX system hosted by a telecommunications company.
Both large and small businesses can benefit from using a virtual PBX system.
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