Hosted
VoIP service providers are focusing in on small and midsized
businesses (SMBs) as recent trends indicate that such firms are
more likely to utilise the cost-effective hosted options than build
an IP network in-house.
Originally envisioned by startups themselves, hosted VoIP is now
serving the market that first developed it and successfully
competing against the traditional telecoms that are just starting
to take an interest in offering hosted service to SMBs.
"The small, nimble companies are the prime innovators and
trendsetters -- the ones that will evolve VoIP from a low-cost
alternative to PSTN telephony into a unified communications
solution with functions and features integrated into virtually all
aspects of SMB operations," commented Sanjeev Aggrawal, vice
president, SMB IT Infrastructure Solutions at AMI-Partners.
One of the major problems facing most SMBs is the very fact of
their smaller size and smaller reach. To inspire more confidence in
their abilities among potential clients, many SMBs are exploring
the possibilities that hosted VoIP and unified communications can
offer. By using these services, many SMBs find they can project the
appearance of being larger and more effective without needing to
bring in more staff to handle their networks. Moreover, hosted
service providers typically offer their options in bundled service
packages that are priced on a per-month basis, allowing SMBs to
better manage their operational expenditures.
The
AMI-Partners report also found that as more SMBs recognise the
cost-savings benefits of hosted VoIP service, there is increasing
interest from the larger service providers in marketing hosted
services to SMBs. In particular, the report documented that North
American SMB hosted VoIP market spending is anticipated to be at
$1.56 billion by 2010, up from $164.9 million in 2005.
"Though the market is expected to reach $1.5 billion in 2010,
that will still only represent 7% to 8% of the market," Aggrawal
said.
With such potential for revenue growth among service providers,
telecoms that have typically marketed to larger enterprises are
beginning to look at the market segment represented by companies
with five to 50 employees.
On the smaller side, for example, is M5, an independent service
provider catering to the SMB market. M5 anticipates doubling its
revenue this year and will surpass the combined revenues from its
first fives years of operation.
Most telecoms are not marketing VoIP services aggressively to
the SMBs because of fears of cannibalising their customer base and
revenues. But as the market grows and adoption rates increase,
leading telecom service providers will become more aggressive in
marketing VoIP to SMBs, Aggrawal believes.
"While the independent service providers are more focused on
SMBs, as the opportunities for growth increase, larger telecoms --
such as AT&T -- will look to get into the market," he said.
"Vendors will find that those who offer more service-based options
will be more successful."