A PBX system, or Private Branch Exchange, is a telephone system that manages incoming and outgoing calls for a business. It connects internal telephones to each other and to external phone lines, allowing employees to communicate without needing a separate line for each phone. This system can handle multiple calls simultaneously, improving efficiency and reducing costs. Modern PBX systems can be either traditional, using physical hardware, or virtual, operating through the cloud. Cloud-based PBX systems offer flexibility, allowing businesses to scale their communication needs easily and access features like voicemail, call forwarding, and conferencing from anywhere with an internet connection.