What Is a Virtual PBX?   by Fidel Casco

in Technology / VoIP    (submitted 2011-02-15)

A virtual PBX is a solution that allows a business to have multiple phone lines without having to install complex hardware. PBX is an old terminology which stands for private branch exchange. In the not too distant past businesses installed PBXs in their offices in order to provide telephones to employees that might be dispersed throughout the office building. By using a PBX the business was able to answer calls either through a centralized switchboard or the client calling and could dial an extension which would automatically be routed to the appropriate employee.

Over the last several years the infrastructure to support PBXs as well as the cost of hardware has dropped dramatically. For example, one of the most significant changes that have allowed the advent of virtual PBXs is the dramatic drop in cost, stability and speed of Internet access. These factors have made it now more convenient and manageable for businesses to implement these new types of services without having to install any new equipment.

The virtual PBX works the same way as it did in the old days. The major difference is that the responsibility to maintain and install hardware is now that of the service provider. Basically, the service provider has large data centers with computers and software running. They then send the service to you over the fast and reliable Internet. And, they offer this to you for one set fee, which could include the use of extensions, fax numbers, and also 800 numbers.

What makes this solution so powerful is that a business can virtually grow on the fly just by adding more extensions. In addition, the business does not have to worry about complex maintenance contracts, hiring consultants to help them install any hardware, and any type of obsolescence. All of the responsibility for the upgrades and support are pushed to the service provider and away from the business.

Implementing a virtual PBX truly is today a plug-and-play type of solution. Essentially, you sign up for the service from the service provider's website, in some cases download a software client and in others no software to install, configure your extensions voicemail etc. and off you go. There has been no better time than today to install a virtual PBX.

About the Author

Fidel Casco is an expert in virtual PBX, business telephone systems and other business telephone service available today. For more small business tips, visit http://www.davidkchan.com.