virtual pbx definition benefits

Virtual PBX Systems: Definition and Benefits

As your company grows, you will realize that your staff needs phone connectivity to enhance productivity and provide better service. Virtual PBX systems are today’s modern option for connecting employees without the traditional clunky and expensive phone systems.

This article discusses what a Virtual PBX system is and how it’s the ideal solution for a growing company. 

virtual pbx service

What Is a Virtual PBX?

To understand the Virtual PBX definition, let’s define PBX first. PBX, or private branch exchange, refers to an internal telephone network where employees can directly call each other without using an external phone line. It’s like the internal IP addresses of a computer network assigned to devices connected to a single router. 

With it, your company shares one or several phone numbers, with every staff or department getting their own extension. Traditionally, a PBX system uses landline phones, physical wiring, and a PBX system that contains the mechanisms to switch calls. This solution is expensive, hard to scale, and requires dedicated expertise.

A virtual PBX service, or online PBX, offers a cloud-based alternative that uses VoIP (voice-over protocol) and SIP trunking to facilitate calls. It’s more affordable because it’s a hosted solution where a provider takes care of system maintenance in exchange for a monthly subscription. You also don’t need dedicated hardware or even landline phones since staff can use their cell phones, laptops, or any internet-connected device.

Virtual PBX Systems: Definition and Benefits

Benefits of Virtual PBX systems

Virtual PBX systems offer numerous benefits for businesses, particularly those seeking flexible, cost-effective communication solutions. 

Here are some of its key advantages:

  • Cost savings: Virtual PBX systems typically have lower upfront costs than traditional on-premise PBX systems because they don’t require significant hardware investments. They offer subscription-based pricing models, so you pay only for the features and services you need.
  • Scalability: You can easily scale up or down to meet changing needs without additional hardware. Rather than painstakingly adding or removing wired phone lines, you only need to contact your PBX provider.
  • Flexibility and mobility: Since they are cloud-based, employees can access the system and make or receive calls from anywhere.  This facilitates remote work, telecommuting, and flexible work arrangements.
  • Feature-rich: Virtual PBX systems typically come with a wide range of features and functionalities, including voicemail, auto-attendant, call forwarding, call recording, conferencing, and more.
  • Easy setup and management: Minimal technical expertise is required. Most providers offer intuitive web-based interfaces that allow administrators to configure settings, add or remove users, and monitor call activity.
  • Business continuity: Virtual PBX systems offer built-in redundancy and failover capabilities, ensuring business continuity in the event of system failures or disruptions. Since the system is hosted in the cloud, businesses can continue making and receiving calls even if their physical office is inaccessible.
  • Advanced security: With a virtual PBX service, you get encrypted phone lines and user access controls to protect sensitive data and prevent unauthorized access.
Virtual PBX Systems: Definition and Benefits

Virtual PBX System Features

Unlike traditional on-premise PBX systems that only offer standard call features, a virtual PBX service provides a wide range of features that support efficient communication. 

Here are the common ones you’d expect to find:

  • Auto-Attendant: An automated greeting system that routes incoming calls to the appropriate extension or department based on the caller’s input or predefined rules.
  • Voicemail: Allows callers to leave voice messages when the recipient is unavailable. Users can access voicemail messages from anywhere, often through email or a web-based interface.
  • Call Forwarding: Enables users to forward incoming calls to another phone number, extension, or device. This ensures calls are always answered, even when employees are away from their desks.
  • Call Routing: Routes incoming calls based on predefined rules, such as time of day, caller ID, or dialed number, to the right person or department.
  • Call Recording: Records incoming and outgoing calls for quality assurance, training, and compliance. Recorded calls can typically be accessed and reviewed later by authorized users.
  • Conferencing: Allows multiple participants to join a single call, facilitating collaboration and communication among team members, clients, and partners.
  • Voicemail-to-Email: Automatically transcribes voicemail messages into text and sends them to the recipient’s email inbox, allowing for easy access and review.
  • Call Queuing: Places incoming calls in a queue when all lines are busy, ensuring that callers are not lost or sent to voicemail due to high call volume.
  • Interactive Voice Response (IVR): Callers can interact with the phone system using voice or keypad inputs to access information, make selections, or complete tasks without speaking to a live agent.
  • Extension Dialing: Enables users to dial internal extensions to easily reach colleagues or departments within the organization.
  • Call Analytics and Reporting: Provides insights into call activity, including call volume, duration, and distribution, helping businesses optimize their communication strategies and improve customer service.

Virtual PBX System Integration

Many virtual PBX systems integrate with other business applications and tools, such as customer relationship management (CRM) software, email, and collaboration platforms. This integration helps streamline workflows, improve productivity, and enhance customer experience.

Integrations also enable you to create your own call center, which is operated by internal staff. For example, by integrating into a CRM system, customer service representatives can quickly access caller information and history so they can provide personalized service. 

Another example is integrating PBX with a calendar for better visibility of schedules and appointments. It can also be integrated into a video conferencing solution so employees can harness the power of video meetings aside from traditional calls for better collaboration. 

With a virtual PBX phone system, the possibilities are endless. Some providers even offer APIs and custom integration to connect the PBX system with a proprietary solution. It enables businesses to create a unified communication platform that allows employees to deliver exceptional customer experiences.

Kent Cañas

Kent is a content strategist currently specializing in HIPAA-compliant online fax. Her expertise in this field allows her to provide valuable insights to clients seeking a secure and efficient online fax solution.

More great articles
billion pbx for business
Billion PBX Review: What You Need To Know

If your goal is to improve business communications, looking into Billion PBX's fully functional IP PBX could be more profitable…

Read Story
pbx vs voip
PBX vs. VoIP: Key Differences You Need to Know

Comparing PBX vs VoIP enables you to determine which phone system best suits the needs of your business.

Read Story
hosted pbx phone systems
Hosted PBX Phone Systems: Definition and Advantages

Read on if you want to know more about hosted PBX phone systems, including some key points on how they…

Read Story
Subscribe to iFax Newsletter
Get great content to your inbox every week. No spam.

    Only great content, we don’t share your email with third parties.
    Arrow-up