Best description I've heard was "a number in the cloud" - ie, a phone number that exists solely in system software without consuming a physical instrument. We use them frequently to build menu trees and voice-annoucement apps. Forward them straight to voice mail then build an associated voice mailbox or call handler, etc
You have 2 types of 'vitual phones' in UCM. A CTI Route Pount and a CTI port. A CTI port has similar limitations as to the maximum number of calls it can handle like a physical phone. A CTI Route Point can handle thousands of calls and are used to front end AutoAttendants, UCCX trunks and similar apps that require almost unlimited simultaneous calls in and out of the DN.
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