Businesses Likely to Embrace IP Telephony in 2005

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Businesses Likely to Embrace IP Telephony in 2005

Another Instat VoIP report to share...

Businesses Likely to Embrace IP Telephony in 2005 - But, Are Needs Being Met?

SCOTTSDALE, Ariz., February 14, 2005 - A significant number of businesses, large and small, are expected to fully embrace IP Telephony, which harnesses the power of the Internet in business communications, over the course of this year. According to new research from In-Stat (, more than 30% of firms, even those with less than 100 employees, are interested in and, more importantly, planning to adopt IP telephony solutions in 2005. However, the research shows that businesses needs for IP voice networks vary greatly and that there is a growing need for "small office" solutions, which are hard to come by. This suggests that one size won't fit all for IP telephony and that meeting customers' diverse requirements with a rich portfolio of product may be what distinguishes "leading" vendors from those that fail.

"Without question, the business network is becoming increasingly fragmented, driving customers' requirements upward and creating a complex product development environment. Today, large customers appear to have similar need for small office solutions (IP telephony systems designed for 20 users or less), as their small business counterparts," says Kneko Burney, Chief Market Strategist for the high-tech market research firm. "Given these market conditions, the successful vendors will be those that offer customers, large and small, an array of products that can meet a variety of needs, from small office to campus installations, from specific applications to PBX-replacement." Burney also states that customers are also expected to place a high premium on service and support for these new systems. But, it seems that, today, there are few vendors that meet customers' growing needs effectively.

In-Stat has also found that:

  • IP Telephony solutions account for a bit more than 10% of the installed base of voice lines in the Enterprise market. However, despite the opportunity for growth for IP telephony, the competitive environment is such that any one vendor will likely grow at the expense of another in the coming years.
  • The small business market is expected to become a key growth segment for IP telephony solutions, as these customers show increasing needs for more advanced voice and data networking capability.
  • A key opportunity for vendors in 2005 and beyond is expected to be the "small IP Network" designed for single sites with 20 or fewer users. With the average enterprise having more than 100 small sites, the opportunity across size of business for solutions such as these is enormous.

The report, "Voice Box: IP Telephony and LAN Convergence in the US Business Market, Part One: US Enterprises (1,000+ Employees)" (#IN0401365EM),covers large Enterprise businesses. Other "Voice Box" reports (#IN0401374MT, #IN0401380SB, #IN0401384SH) cover Mid-Tier companies, Small Businesses, and SOHO firms. They provide forecasts for the number of voice lines used by type, including TDM PBX, IP-enabled, IP telephony, and Centrex. Forecasts for voice network equipment and IP telephony are also included. Data on line use, application and business drivers, voice network requirements, and IP telephony as part of a bundle are presented. Brand and channel data for IP telephony purchases are provided as well. To purchase this report, or formore information, please visit:

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