Asterisk is a complete PBX in software. It runs on Linux, BSD, Windows and OS X and provides all of the features you would expect from a PBX and more. Asterisk does voice over IP in four protocols, and can interoperate with almost all standards-based telephony equipment using relatively inexpensive hardware.
Asterisk provides Voicemail services with Directory, Call Conferencing, Interactive Voice Response, Call Queuing. It has support for three-way calling, caller ID services, ADSI, IAX, SIP, H.323 (as both client and gateway), MGCP (call manager only) and SCCP/Skinny. Check the Features section for a more complete list.
This wiki will show you how to configure a simple in house network enabling us to use a SIP softphone to talk to another SIP softphone on your LAN.