Virtual PBX is the facility that offers its users all the benefits of a comprehensive phone system but from a remotely hosted location. It means that people do not need to buy and install the PBX hardware, install telephone lines, employ operators but still enjoy all the services that are on offer with a PBX system. This type of service is an extension of the virtual office set up and when viewed or availed in isolation, can fulfill the entire telephone and voice communication needs at a fraction of the cost. The functioning of the virtual PBX is the same as the actual PBX hardware unit but the advantage for the users is that the virtual PBX is hosted in a remote location. The remote PBX is also a shared unit and is utilized for different telephone lines, catering to different people. The advantage with this method is that the cost of the virtual PBX unit is also optimized because it is getting shared between many users. At the same time, the users are also benefitted because, they do not have to buy and use a PBX unit for their business needs.

Virtual PBX services usually provide incoming calls service at extremely low costs. Sometimes, the incoming service is offered free, as a part of a bigger package. The most important telephonic aspects that are essential for the success of any business are the ability to reach out to customers and the facility through which the customers can contact the business representatives.  A PBX system can do these functions effectively but on the flip side, it costs are lot. He hardware purchase charges, installation charges and maintenance costs are just one aspect of the involved expenditure. It also requires the appointment of a dedicated individual to manage the call flow. Recurring expenses of the employee salary and benefits need to be added to the expenditure. In addition to this, the cost of setting up the telephone lines along with the maintenance and monthly rental charges form a major part o the PBX system expenses. Many times, the PBX expenditure can be many times more than the gain in business but even then, it cannot be avoided. The best way to overcome this issue is by opting for the services of a virtual PBX system and only pay for the services whenever they are used. Even if the user opts for a monthly package, the costs are just a fraction of the expenditure that is associated with the traditional PBX system.