Hosted VoIP Markets Grow In A Recession

Updated: January 07, 2011

Written by: Amelia Gurley

According to three new reports from Infonetics research division; covering Communication Expenditures and IP PBX Vendor Ratings, VoIP and UC Services and Subscribers, and Enterprise Unified Communication, VoIP, and TDM Equipment; business is improving for hosted VoIP services and unified communications. Despite many financial setbacks due to the recession in 2009, worldwide revenue from hosted/service provider VoIP grew by 20%. This stands in sharp contrast to the measly 3% growth in the enterprise unified communication, VoIP, and TDM equipment markets. Overall revenue for these programs also dropped 21%.

Why the recent success in hosted VoIP? According to one writer, "companies that are looking to save money on short-term expenditures will look at hosted VoIP since it has a much lower upfront cost vs. purchasing an IP-PBX." Perhaps there is a silver lining to the recession after all, at least for VoIP providers, as harsh economic conditions make the advantages of VoIP communications more and more obvious.

Thankfully for IP-PBX systems suppliers, the Infonetics report also “predicts that [hosted VoIP and IP-PBX] revenue to grow in 2010, led by pure IP PBX phone systems, as worldwide economic conditions improve.” This is especially good news for NEC and Aastra, two relatively small-scale companies that made “huge gains” in IP-PBX in 2009, although in Aastra's case these gains may be distorted by the newness of Aastra's IP-PBX program.

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