A serverless telephony system (STS) establishes and maintains a voice, data and video exchange between telephony devices using Internet Protocol (IP). The STS in a preferred embodiment comprises software running on a telephony device with a standard packet network connection over a local area network (LAN) or a wide area network (WAN), or a combination, which may include the Internet network. The new system enables one telephony device to establish a connection with another telephony device without intervention by any third device such as a switch or a server. In one embodiment an IP-PBX (Internet Protocol-Private Branch Exchange) application is provided having no server presented in the network for establishing a call between any two IP phones on a Local Area Network (LAN), providing substantially all services typically expected from a standard PBX, and yet functions in compliance with one or more of a H.323, a MGCP, a SIP protocol or any one of other standard protocols.