Hosted PBX

Hosted PBX (Private Branch Exchange) is often called cloud based or virtual PBX meaning that there is a full-featured phone system in a remote data center that manages the calls and phone features. A user will have a physical phone on their desk that will connect to the provider. This works in the same manner that VoIP or SIP does but adds features of a business class phone system like voicemail, conference calling and internal extensions. The advantage to a hosted service is that the business does not have to purchase or maintain the expensive equipment that will be outdated in few years.
http://en.wikipedia.org/wiki/Virtual_PBX



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