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Digital fax machines send outgoing faxes to an external server (cloud server). If the recipient also has a digital fax machine, they receive a notification that they have a fax waiting for them. The recipient can download the incoming faxes at their convenience. You can also send a digital fax to a physical fax machine, and the physical machine will print out the fax. If the receiving fax machine has a busy signal, the cloud application holds the digital fax until there is a free line.