Virtual PBX

Mightycall > Glossary > Virtual PBX

This entry covers:

  • What is vPBX?
  • Virtual PBX main components
  • vPBX operating principles
  • What is Virtual (hosted) PBX is for?
  • How vPBX can help your business development

Virtual PBX (vPBX) is an IT/Telecom service that simulates the functionality of business phone system. Such a service is delivered over the public switched telephone networks (PSTN) or the Internet, so it belongs to over-the-top (OTT) services.

Usually, virtual PBX service has 3 components: PBX functionality, virtual number, local and long distance phone service.

Virtual PBX service is provided by a service node of service operator. The service node receives calls, makes a routing decision on the basis of a lot of parameters, and forward calls to a new destination through PSTN (Public Switched Telephone Network) or the Internet. The new destination can be a usual landline phone, mobile phone, IP telephone set, softphone.

Virtual PBX service is very popular among entrepreneurs, small and medium business. The reason is that –
vPBX:

  • eliminates the need for hardware and software buying
  • does not require an attention and resources for maintenance
  • perfectly scales with a number of employees, call traffic, needed services, branches
  • has a good elasticity to traffic load
  • easily downgrades without loss of investment when staffing or branches reduction occurs
  • makes a business more flexible

Sometimes ‘virtual PBX’ is considered as a synonym for ‘cloud PBX’ and ‘hosted PBX’. Strictly speaking, it is not correct, because these 3 terms emphasize different facets of service. But in most cases these terms are interchangeable.