Trend toward hosted and business VoIP services seen across three new reports

    New reports on the increasing trend from in-house management of phone lines to hosted providers, like M5, that work "in the cloud." The report also gives a shout out to our partner, Cisco, who is helping to provide tech to power the telecom revolution.

    Trend toward hosted and business VoIP services seen across three new reports

    "The enterprise telephony market was hit hard in 2009 due to the recession, but based on the latest quarterly shipment figures and results from our March 2010 survey of North American enterprises about IP PBX spending, it appears that the bleeding has stopped and 2010 promises to be a better year, good news for vendors and service providers alike. From our IP PBX survey, it appears that businesses are increasingly embracing a hosted services model, as their capacity needs will depend on how robust the economic recovery is, and hosted services allow them to more easily ramp their capacity needs up and down without a huge cash layout for equipment," notes Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research.

    Diane Myers, directing analyst for service provider VoIP and IMS at Infonetics Research, adds: "VoIP services sold to the residential/SOHO market still make up the lion's share (about three-quarters) of total VoIP service revenue, but we saw a pickup in business VoIP service revenue growth in late 2009 and service providers report that they are seeing increasing interest in hosted VoIP services across all sizes of businesses, including large enterprises. We expect this trend to continue as more companies turn to hosted services for their voice needs, with business VoIP services making up almost a third of all VoIP service revenue by 2014."


    • Most phone extensions today are delivered via IP PBXs, having out-shipped TDM PBXs for years, and are finally taking up a sizable share of the installed base

    • Businesses expect to increase their phone extensions at a slightly higher-than-normal growth rate over the next 2 years (15%), which can be attributed to hiring and growing following the recession

    • Virtually all future growth in phone extensions will come from IP platforms, whether hosted or customer-owned

    • Applications expenditures are expected to rise 14% in 2010; they will play a crucial role in increasing an organization's efficiency and employee productivity

    • Cisco leads the list of deployed IP PBX vendors by far: 18% of respondents have Cisco installed today

    via Infonetics Research | telecommunications market research | telecom market analysis.