Virtual PBX key terms are part the technical jargon and acronyms that you'll hear often when shopping for virtual private branch exchange (PBX) systems. PBX is the switching system within a building or company telephone network. Virtual PBX, also called hosted PBX, is a system that's located off the premises. Some of the advantages of a virtual system are that you won't have to purchase or maintain equipment and all configuration and management is done by the hosting company.

Choosing a virtual PBX system means that your staff won't have to be as familiar with terminology, since you won't need to support or manage the system. However, familiarity with some of the terminology may still be helpful for the following reasons:

1. Since you'll hear a lot of terms used by hosted PBX providers, it's a good idea to understand what features are available.

2. Familiarity with other types of phone systems can help to determine if hosted PBX is the right choice for your business.

3. An understanding of PBX technology will help you to understand the limits and potential problems of virtual PBX.

Action Steps for Virtual PBX
The best contacts and resources to help you get it done

Get familiar with general virtual PBX software terminology

Before talking to vendors, familiarize yourself with general telecommunications and PBX terminology. One of the general terms that will probably be mentioned is Voice over Internet Protocol (VoIP), which is the protocol used for routing calls over the Internet or networks. Session Initiation Protocol (SIP) is the predominant VoIP signaling protocol. Features to look for in a system include auto-attendant, a voice system that routes incoming calls and switch and call management codes.

I recommend: For a glossary of general PBX terminology, check out Virtual PBX. HostedPBXguide contains definitions of features provided by virtual PBX providers. The glossary supplied by PBXtra by Fonality contains networking and telecommunications terms.

Know what to look for in an online PBX provider

Understanding how PBX works and knowing what to look for in a system can help you decide if hosted PBX is the best solution for you. It's important to know the benefits and disadvantages of hosted PBX versus in-house systems, including IP, hybrid, and standard PBX systems. Check out white papers, buyers' guides and best practices documents to find out what types of features are available and compare products.

I recommend: For an explanation of how PBX works, check out TechRepublic. View best practices for choosing and implementing a PBX system at Network World. Read up on different types of PBX systems at OfficeVoIPSolutions. It provides an excellent overview of standard types of PBX systems, including Key and TDM Systems, pure VoIP systems and hybrids.

Understand the role of VoIP in virtual PBX solutions

Most virtual PBX systems use VoIP as their backbone. It's important to get an overview of VoIP before talking to a sales rep or setting up phone service.

I recommend: Go to Packetizer for an article that contains a thorough overview of VoIP. Check out Compare-VoIP for tutorials on VoIP.

Tips & Tactics for Virtual PBX

Helpful advice for making the most of this Guide

• •  Regular reading about virtual PBX services and telecommunications technology will make the terms more familiar and easier to understand. It may be helpful to find articles that are easy to understand and peruse them at your leisure, rather than cramming all at once.

The basics of private branch exchange (PBX) are clear to anyone who has ever called a doctor's office: You get a receptionist, a recording, or a chance to search for your contact by name, and perhaps leave a voicemail.

While not complex nor tremendously expensive, a virtual PBX system is hardware and virtual PBX software that must be bought, installed, serviced and, eventually, replaced. If your office is small (under 100) or has a load of telecommuters, part-timers or just busy, mobile sales people, a virtual PBX service might be a good choice. Lose the hardware, and only rent the virtual PBX software side online, over the Web using VoIP PBX or hosted PBX.

In guide, the basics of virtual PBX systems are covered, including:

1. Basic virtual PBX service
2. Comparing virtual PBX with standard PBX service
3. Buying hosted PBX and VoIP PBX
4. Small business PBX options

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Start off slow with basic virtual PBX service features

The world of telecom acronyms can be pretty jarring. If what you want is a receptionist and voicemail, small business PBX can be cheaper and easier to buy than fully-blown virtual PBX system or hosted PBX.

I recommend: Take a look at virtual PBX software offerings along this line from vendors like eVoiceReceptionist, WorkEasy, Onebox and American Voicemail.

Complete virtual PBX systems are plenty and plenty competitive

If you've priced a fully blown small business PBX system, take your bid and stack it up against virtual PBX software for a good comparison.

I recommend: RingCentral, VirtualPBX, GotVmail, Freedom800, and VoiceNation can get you going on small business PBX for as little as $10 a month, depending on how many services you add to the basic virtual PBX software package. See more choices at the Business.com directory on hosted PBX and virtual PBX service.

Hosted PBX can bring a load of advantages besides cost

Because it relies on your Internet connection to work, hosted PBX can put your phone calls into an integrated, always-on world. Track people down, have clients find you, assign numbers on the fly. The sky is (nearly) the limit, and even big vendors have small business PBX packages.

I recommend: Some of the larger, business-class providers of virtual PBX include Avaya, Nortel Networks and Cisco Systems.

Cut costs dramatically using VoIP PBX

Voice over Internet Protocol (VoIP) uses the Internet to route your business calls, a very cheap alternative to traditional phone lines for small business PBX. Given that the calls are already coming through a server, it's possible to add virtual PBX features over the Web using virtual PBX software.

I recommend: Give the predictability of Web calling costs, some providers have move to billing virtual PBX service flat, simplifying the business decision. For more on VoIP PBX, take a look at Palavon, Aptela, and Broadcore.

Small business PBX for the very small business

Some providers have structured their offerings around not just small business PBX but even single users. This flavor of small business PBX is good for independent contractors, real estate professionals and consultants, these plans have simplified Web interfaces, much like VoIP PBX, charge for a set number minutes, much like cell phone plans.

I recommend: Some companies in this space includ ifbyphone and ConnectMeVoice,

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Virtual PBX service, once operational, can make it easier still to use popular customer relationship manager (CRM) software. If you have bought or are looking at CRM systems in addition to your virtual PBX software, ask your vendor about small business PBX integration.
• •  Hosted PBX systems increasingly can see phone numbers for what they are: numbers. If half your sales force is on cellular phones, they can be included in the small business PBX directory. Some allow programming that rings office phones during business hours, then cellular phones after hours.
• •  Avoid signing contracts. Most virtual PBX systems will let you go month to month on a small business PBX plan (although some may charge more for that) on the expectation that either comfort, or sloth, will keep you on board. Try before you buy, in any case.

Making the most of virtual PBX means getting the features your business needs at the best possible price. Virtual private branch exchange (PBX) systems manage all your calls and voice mail, so that your company doesn't have to invest in equipment. It can save time and money since it saves you from supporting, maintaining and replacing phone system hardware and software. You also don't have to worry about having a secure space for the large equipment usually associated with PBX systems.

Because of advancements in technology, virtual PBX systems often offer many of the same features as on-site systems. They can also usually be customized to meet your business needs and number of users, so you don't have to pay for services you don't need. To make the most of hosted PBX systems:

1. Compare a variety of virtual PBX systems before making a choice.

2. Find a virtual PBX system that offers low rates for small businesses.

3. Get a system with advanced features that save time and give your company a professional presence.

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Pay only for the virtual PBX services that you use

If you have few users or mobile employees, save money by purchasing a simple system. You'll only pay for the features you use and can upgrade later.

I recommend: Junction Networks offers low monthly rates and flat fees, so you pay for only the calls you make or receive and the features used. Virtual PBX offers a range of services, starting with a low-cost system for offices with only a few users.

Compare virtual PBX providers

With so many choices available, having a guide to virtual PBX providers can be helpful. PBX guides allow you to do a side-by-side comparison of the features and prices of providers.

I recommend: Hosted PBX Guide gives brief summaries of industry leaders in virtual PBX systems. PBXCompare consolidates information about the top providers of PBX software services.

Create a professional first impression with business hosted PBX services

Many PBX hosting providers offer features like professionally recorded greetings, music on hold and virtual or live receptionists. Features like these can make even a small home office look like a large, established company.

I recommend: Onebox Receptionist from j2 Global Communications automatically answers, manages and routes all calls. It includes a toll-free number, studio recorded greeting and menus and recorded voices of receptionists. MyBusinessAssistant offers 24-hour live receptionist services that can be combined with their virtual PBX service.

Get convenient voice mail options from an online PBX provider

The ability to listen and respond to voice mail messages in a timely manner is important. When choosing a PBX provider, make sure it's easy to get your voice mail.

I recommend: Innoport from Intellicom allows users to retrieve voice mail by phone, email or through a web browser. With eVoice, also from j2 Global Communications, voice mail messages are sent to your email inbox and you can listen to them using your computer speakers.

Get free advanced features with virtual PBX software

Several companies offer shareware that allows you to create your own virtual PBX system. Using only a computer or server and existing phone lines, you can set up call center management for free..

I recommend: Call Conductor Virtual PBX Software, available at Download, allows your business to set up a call center environment using a computer and VoIP technology. Axon is a virtual PBX that can be downloaded from TopShareware and is designed to manage calls within a business or call center environment. Both are free to download.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Remember that most virtual PBX solutions use VoIP to connect. If your Internet connection goes down, you'll probably lose your call functionality.

Getting virtual PBX advice and ratings is a must for any business that is considering contracting with a hosted or online PBX provider. PBX, short for Private Branch Exchange, is a phone system used by many businesses with multiple phone lines. Incoming calls are received by a single phone line, then directed to other lines through hardware and software. It saves money on telephone lines, since companies do not need to maintain multiple lines. However, an in-house PBX can be expensive, since equipment and software must be purchased and maintained. Many companies can save money and avoid support headaches by using hosted or virtual PBX systems.

A virtual PBX is hosted on servers outside of your business. The host is responsible for maintaining and upgrading hardware and software and providing support. Calls are routed to your company, usually with IP technology. There are many virtual PBX software vendors to choose from, and advice and ratings can help by:

1. Showing reviews of providers of virtual PBX services;

2. Providing side-by-side comparisons of features and costs;

3. Offering expert advice on deciding whether a virtual PBX is right for you, and ways to utilize it to its full extent.

Action Steps
The best contacts and resources to help you get it done

Get business hosted PBX reviews and ratings

There are several hosted solutions to choose from, so making a decision can be difficult. If you're new to PBX systems, determining what to look for and what features you need can be another issue. Industry ratings and reviews show the strengths and weaknesses of different providers and give insight into what features to expect.

I recommend: Virtual PBX Review lists what you should receive with your virtual PBX system and reviews popular packages. PC Magazine provides descriptions and pricing of several virtual PBX solutions for small business.

Find comparisons of virtual PBX providers

A side-by-side comparison of PBX providers ensures that you are comparing apples to apples when choosing a PBX provider. It's possible to gather all this information yourself, but fortunately many websites have already done the work for you by creating comparison tables of what each provider has to offer.

I recommend: PBXCompare from ChooseWhat not only offers a side-by-side comparison of popular virtual PBX systems, but also provides descriptions of various levels of PBX systems so you can choose systems from the right category for your needs. VirtualPBXCompare also offers a guide, along with 10 steps to take when shopping for a system.

Read expert advice to determine whether phone switching services are right for you

It takes a lot of thought and preparation to make the leap from your own system to one that is hosted elsewhere. Experts can offer insight into the many advantages of a hosted PBX, as well as some of the pitfalls. They can also uncover benefits and ways of utilizing a virtual PBX to make your office more productive.

I recommend: Read an article from PC World Communications to see the advantages of using a virtual PBX system, and how small businesses can create customized solutions.