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Limited Budgets Driving Small and Medium-sized Enterprises Toward Hosted IP Telephony - The availability of hosted Internet Protocol private branch eXchange (IP PBX) or hosted IP Centrex services has increased manifold in the last 24 months, stimulating its adoption among enterprise customers in North America
Limited Budgets Driving Small and Medium-sized Enterprises Toward Hosted IP Telephony

 

PRZOOM - /newswire/ - Palo Alto, CA, United States, 2008/06/04 - The availability of hosted Internet Protocol private branch eXchange (IP PBX) or hosted IP Centrex services has increased manifold in the last 24 months, stimulating its adoption among enterprise customers in North America.

   
 
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The increase in competitive intensity has also forced vendors to carve various niches to generate higher profitability. Simultaneously, vendors are enhancing their offerings, expanding distribution channels, as well as investing resources in generating brand awareness.

New analysis from Frost & Sullivan (enterprisecommunications.frost.com), North American Hosted IP Telephony and VoIP Access Service Markets, finds that the number of users is likely to increase from 860,000 in 2007 to nearly 4 million in 2013.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the North American hosted IP telephony and voice over Internet Protocol (VoIP) access service markets, then send an email to Mireya Castilla, Corporate Communications, at mireya.castilla[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by email.

"Hosted IP telephony and VoIP access services provide enterprises with an advanced telephony solution without the capital and operating expense associated with expensive network upgrades," notes Frost & Sullivan Program Manager Imran Khan. "Apart from the capital and staffing-related cost savings associated with hosted IP telephony, enterprise customers are also able to benefit from the business continuity capability inherent in hosted or network-based telecommunication solutions."

The lack of hefty capital investment budgets on the part of many small and medium enterprises (SMEs) will be the key driver for the North American hosted IP telephony and VoIP access service markets. These enterprises are increasingly looking to reap the benefits of IP-based services and hosted IP telephony that enable them to utilize telephony capabilities that are at par with large enterprises, at only a fraction of the cost.

However, the lack of in-house IT staff in SMEs can also delay the adoption of advanced/new IT/telecom solutions. The lack of IT personnel can often lead to limited understanding and awareness of various technology solutions, as smaller entrepreneurs struggle to address core operating challenges such as workforce management.

"Negative perceptions surrounding traditional Centrex services are also likely to impact the overall enterprise attitude toward hosted IP telephony during the next year or so, thereby restricting adoption," says Khan. "Vendor reliability concerns will also prevent several enterprises, specifically within the medium and large enterprise segments, from adopting the solution."

Overall, the key success factors for hosted IP telephony VoIP access providers have not changed much over the past 12 months or so. Service quality, reliability, provisioning, pricing, and feature diversity still remain the leading vendor evaluation criteria for enterprises seeking such solutions.

North American Hosted IP Telephony and VoIP Access Service Markets is part of the Enterprise Communications Growth Partnership Service program, which also includes research services in the following markets: Enterprise vertical markets, Enterprise product penetration and spending trends, and Enterprise telephony solutions. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents.

North American Hosted IP Telephony and VoIP Access Service Markets
N29D-62

 
 
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Limited Budgets Driving Small and Medium-sized Enterprises Toward Hosted IP Telephony

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Contact: Mireya Castilla 
210.247.3830 mireya.castilla[.]frost.com
 
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IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any Frost & Sullivan securities in any jurisdiction including any other companies listed or named in this release.

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