Hosted VoIP Growing Strong For Next Five Year: IDC Print E-mail
Written by Adam Gosling   
Friday, 07 September 2007
Industry research outfit, IDC says the market for enterprise hosted IP voice has been growing over the past two years. It is the beginning of a trend that will continue over the next five years, it says.

IDC believes that potential for enterprise hosted IP voice is compelling especially when delivered and integrated with other applications such as IP contact centers or voice recognition software. The market for hosted IP voice services among U.S. businesses is expected to reach nearly US$455.9 million by the end of 2008.

This will continue to grow at a rapid pace, but the strong growth masks several challenges the industry has yet to overcome, says IDC. Foremost is the issue of including pre-sale design and implementation as well as post-sale service and support. Second, service providers must continue to develop the service including integrating with existing enterprise applications in order to create a unified flow of information from voice and data applications.

IDC predicts that price will continue to be the most important differentiator when competing with a premise-based solution, in the near term. However capabilities enabled by IP will create a rich applications environment that will easily surpass the Centrex model and lead to promise land of communications and desktop applications delivered seamlessly in a web services-like architecture, it says.

In order to reach its true potential, hosted VoIP still needs to improve and evolve. Conversations with enterprise IT managers and service providers confirm that while delivering VoIP via IP PBX is hard, delivering hosted IP voice can be even harder.

"Some of the very early implementations were flawed, leading to customer cancellations and botched deployments," says Will Stofega, research manager, Voice over IP Services. Still, IDC believes that the lessons learned from these early deployments are undoubtedly a painful but necessary part of the adoption cycle as the hype and potential of a new service runs up against the reality of customer expectations. As hosted VoIP services evolve over the next five years, IDC expects the value proposition to evolve from a communications service to a business process tool.

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