What is Virtual PBX?

Hiba Rajput
3 min readJan 26, 2023

--

A common perception about cloud-based phone systems is that large businesses with sophisticated IT needs and significant budgets benefit from them. Cloud PBX has similar advantages for small businesses. Significant advantages for small organizations include cost-effectiveness, scalability, and the flexibility to make and receive calls from anywhere.

Cloud technologies have now shown value, and organizations are searching for more ways to use them as we continue to work and communicate digitally. Small firms focus on telephony, virtual PBX, and using cloud-based phone systems to merge their corporate communications under one roof.

So, let us start with understanding what a PBX does, how cloud PBX is better than traditional, and how small businesses can implement it for exceptional customer service.

What does a PBX do?

PBX systems contribute to more accessible and reliable communication within a business. A PBX’s fundamental function is to link communication equipment like hubs, switches, phone adapters, servers, and phone sets. Each PBX varies in complexity and size. There are straightforward home PBX systems that convert a regular phone connection to cloud-hosted applications, as well as sophisticated and pricey business communications networks owned and run by a single company.

PBX phone systems manage calls in four ways:

  • Build connections between the two users’ phone sets.
  • Keep links open for as long as users demand.
  • Based on the needs of the user, disconnect a connection.
  • Information that the company can use for analytics and accounting.

How does a Cloud PBX Work?

Cloud PBX performs similarly to a traditional PBX system. It works on a cloud server instead of an on-premises server. You can use and manage switchboard capabilities from everywhere there is internet connectivity. The Cloud PBX phone system’s working principle is as follows:

  • It changes all calls into data packets, keeping them on your current network.
  • The system stores all data like phone numbers, time, and meta in the cloud.
  • Transfers data pacts to PSTN.
  • PBX system starts the call after receiving the recipient data and connecting to IP PBX devices.

Difference Between Traditional and Virtual PBX

Switchboards were used in older PBX phone systems to direct phone calls to the user extension or division. A virtualized PBX system uses cloud PBX to connect them to far-off but highly secure centers over the internet.

Call queue management, call exchanges, IVR selections, and other crucial features of a modern corporate phone system, such as voicemail and call recording, are all handled by cloud servers with a system housed in the cloud.

The table summarizes the differences between virtual PBX systems and traditional PBX systems.

Summary of differences between Virtual PBX and Traditional PBX
Difference between Virtual and traditional PBX systems

Is the Cloud PBX the Same as the VoIP?

Even though cloud PBX systems have a voice-over-internet protocol (VoIP) to function, these are two novel concepts.

VoIP enables online phone calls. Its call conveys a bi- or multi-directional audio or video stream across devices using Wi-Fi or Ethernet connections. You can make a VoIP call using a particular IP phone or software.

Cloud PBX uses VoIP to send call data. All cloud telephone systems use VoIP systems, but not all are cloud-based. A cloud PBX system handles call routing remotely, although a VoIP phone line may depend on office equipment.

What is the Difference Between PBX and SIP?

SIP technology can identify and link devices with as many parties as required. The signaling between devices attempting to connect is an essential component of SIP technology. It has several standards allowing connecting sessions between devices. PBX is a crucial component of any business for day-to-day functioning. It includes extension dialing, waiting in lines, call re-routers, sound delay, conference calls, and more.

SIP and PBX technologies work together seamlessly. By combining these protocols, businesses that use conventional PBX trunking can still take advantage of the many features of PBX systems created from the ground up. SIP and PBX are usually deployed together to get maximum benefits, yet SIP alone can provide all conferencing services of PBX in a single place.

Wrapping Up

Act immediately if your company still has trouble because it uses outdated telephony technologies. Most likely, your rivals are already using cloud PBX solutions, VoIP technology, and other cloud-based services.

The benefits, attributes, and cost-saving opportunities mentioned above are only a few of the causes. However, your only justification is that you want to stay caught up.

--

--

Hiba Rajput

Tech writer sharing insights on the latest trends. Diving tech, productivity, social media strategies and more. Follow for compelling reads and knowledge.