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SMBs Ripe for VOIPSMBs Ripe for VOIP

SMBs ripe for VOIP conversion but providers still disconnected from economic buying imperative

September 12, 2006

1 Min Read
SMBs Ripe for VOIP

BOSTON -- The difficulty buying Voice-over-IP (VoIP) for small and medium businesses (SMBs) in the U.S. hasn't dampened enthusiasm for the technology, nor has it compelled providers to get better connected with buyers in this lucrative market, according to new research from telecommunications consulting firm Savatar. While the SMB market is showing some growth – 17 percent of SMBs out of 560 companies surveyed have deployed VoIP versus 15 percent in Q1 2006 and 12 percent in Q3 2005– for those who haven't yet made the jump to VoIP, there is confusion about what solution to buy and from whom to buy it. Seventy percent of SMB decision makers are still unclear where to turn for the best VoIP options.

"Providers are still not generating demand for VoIP with SMBs,” said John Macario, president of Savatar. "Providers have a 'wait and see' attitude coupled with a quote process that takes more than a month, and that's not helping them capture the market. SMBs need to be educated about the benefits of VoIP; they'll buy from the provider that can help them make the decision on products that are economically advantageous for the SMB's business.”

Macario continued, "The good news is once SMBs are converted, they tend to be highly satisfied with VoIP, would recommend it to their peers, and are interested in buying complementary services, such as wireless.”

Lucent Technologies Inc. (NYSE: LU)

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