Hosted PBX
What is Virtual PBX?
Virtual PBX systems use Voice over Internet Protocol (VoIP) to make and receive calls over the internet.

What is Virtual PBX?

No matter what your business is, chances are you've heard the term "virtual PBX" before. Or possibly "cloud PBX," "VoIP phone system," or simply "cloud phone system." After all, over 31% of businesses use a virtual PBX-type solution in their everyday activities.

But what exactly is virtual PBX? In this post, we dive into the finer details of virtual PBX systems: what they are, what they do, and how they can work for you!

What is a virtual PBX?

Back in the day, offices often used a PBX (a private branch exchange) – a private telephone network that allowed their employees to make and receive calls over traditional phone lines. Today, a virtual PBX functions the same way. Only it uses Voice over Internet Protocol to make and receive calls over the internet.  

How does a virtual PBX work?

Virtual PBX systems use Voice over Internet Protocol (VoIP) to make and receive calls over the internet. VoIP is a process that converts voice signals into digital data, then into data packets that are then sent across the internet through a router. This protocol uses the SIP and specialized VoIP hardware or software, using local or Cellular networks.

What differentiates a virtual PBX solution from other VoIP solutions?

There are three common VoIP phone systems: IP PBX, hybrid VoIP, and fully virtual VoIP. An IP PBX routes calls using VoIP networking and the Public Switched Telephone Network (PSTN)  i.e. normal telephone lines. The hybrid solutions often use a Primary Rate Interface (PRI) phone system alongside VoIP phone. A PRI phone system is physically connected to the PSTN, with VoIP phones acting in conjunction with them over the internet. A fully virtual PBX system uses only VoIP phones and an internet connection. No need to invest in desk phones, cables, or any type of dedicated hardware.  

What are the benefits?  


Now that you know what makes a virtual PBX system unique among its competition, you probably only have one question: how does it help me, my employees, and my business?

Reduces the Cost of Communication

With a virtual PBX, you don't have to worry about investing your capital in high-cost equipment, telephony services, or additional on-site support.

Gives Your Team the Features They Need & Want

Not only can a virtual PBX do anything a normal phone system can do – call forwarding, call waiting, conferencing, voicemail, caller ID, etc. - but it also includes features like video calling, instant messaging, and more alongside powerful desktop and mobile apps that allow employees to take business calls on the go.

Removes the Need for Physical Offices

In the days before COVID, many businesses had to link their phone systems to a physical address in order to acquire communication services. A virtual PBX has no limitations, allowing you to create offices and call centers locally – and even globally – without having to invest in a physical office space.

Provides Easy Integration with Current Software

If you're looking for a way to track calls in your CRM, or even your task management software, virtual PBX systems have you covered. Most virtual PBX offerings come with the ability to integrate with other common business software, giving your employees a simpler way to keep track of their daily activity – especially sales.  


What do you need to get started?  

A virtual PBX is also quite simple to set up, even for those who have no background in telephony. Here's what setup usually entails:

Basic Infrastructure

Acquiring a trustworthy provider

  • A must-do for any business looking for a virtual PBX system. Your provider should be highly responsive, highly rated, and offer a system that has all the features you need. Bonus if their offering is compatible with your current hardware.

Investing in proper hardware  

  • Be sure you're equipped with a router and VoIP adapter
  • Many phones and headsets are already VoIP-capable, so be sure you double-check your current office phones before looking into purchasing new ones

Maintaining an excellent internet connection

  • This is obviously another must. Your connection must be as reliable as possible – preferably based on a fiber optic network.

Testing the bandwidth of your devices

  • If your current phone system is VoIP-capable, this shouldn't be an issue. But with older systems, it's important that you know what kind of call volume they can handle. If you're not sure you can always reach out to your hardware provider.

Simple Installation Plan


Coming up with an installation plan isn't as complicated as you may think. It's merely assessing what details need to be covered prior to the launch of the virtual PBX. In fact, we'll give you a basic installation plan right now:

Assign admins

Choose one or more team members to have complete control over your system and its settings. This way your employees have a dedicated resource for when they have questions or problems with the system. It also gives your provider someone to speak to about any new additions or changes to the system.

Generate your corporate voicemail greeting and virtual receptionist

Once the admins are assigned, their first task should be making sure that incoming calls are routed well. This means making sure the menu options are correct and lead to the right person or department. And it means making sure the corporate voicemail is clear and professional.  

Set calling hours

Making sure your phone system rings during your normal business hours – on every device, at every location, and on every extension – is a step that some businesses overlook in the beginning. Don't be one of them! Having the proper calling hours reduces the risk of customer calls not being answered or not being seen at all.  

Integrate with other systems

Take advantage of your new virtual PBX and try out some integrations! The most popular deal with CRM and workflow systems but be sure to ask your provider if they have any recommendations for other ways to integrate your PBX into your established workflows.



Have more questions? We're here to help!

Our goal is simple: to give you the best in business communication. That's why Tierzero offers a state-of-the art virtual PBX packed with cutting-edge features, backed by trustworthy network services, and supported by our U.S.-based customer service staff. But don't just take our word for it – see it yourself!

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