PBX stands for public branch exchange. It is a machine that handles your telephones calls for you. Its main functions are to transfer calls to different individual phones; play music when somebody is put on hold; to play automated voice responses when a call is received; to provide an options menu for the caller etc.

A traditional PBX machine and integrated system is very expensive to buy, install and run. Typical costs for a package can range from £5,000 to £15,000, depending on the size of the network required, plus a yearly maintenance contract ranging from £500 to £1,500 per year.

But all these expenses can be cut down to virtually nothing by using a virtual PBX. It has all the functions of a PBX and more but removes the need of installed hardware.