InfoTech Analyzes Hosted VOIP

Hosted IP telephony market poised for explosive growth, says InfoTech

July 19, 2005

1 Min Read

PARSIPPANY, N.J. -- According to a new study from global research and consulting firm InfoTech, U.S. enterprise purchases of Hosted IP Telephony -- in which IP-based voice communications are provided remotely by a Network Service Provider -- are forecasted to grow from $310M in 2005 to $5.9B in 2010.

"Although the market potential for Hosted IP Telephony is huge, the service providers should not underestimate the influence of the incumbent CPE providers," remarks Warren Williams, senior director for InfoTech's InfoTrack for Enterprise Services. "Given the current predominance of premises-based voice platforms, enterprises are going to take a hard look at the business case for hosted IP Telephony before they switch over."

InfoTech research also found that over 90% of enterprise decision-makers require a financial impact assessment before making IT purchases. According to Ken Dolsky, a director of Professional Services at InfoTech, "Not only are most businesses requiring a solid financial analysis to support their purchase decisions, but nearly 70% of enterprises expect their key vendors to provide an objective financial analysis as part of the sales process."

In response to this need, InfoTech has developed a Hosted vs. Premises IP Telephony ROI Tool that can analyze the solutions of any manufacturer or service provider. "Given the stiff competition for available enterprise dollars, technology suppliers need the capability to provide accurate, timely and insightful financial justifications for their proposed solutions," adds Dolsky. "The InfoTech Hosted vs. Premises IP Telephony ROI Tool gives manufacturer or service provider sales teams the ability to quickly and easily prepare CFO-grade analyses that compare the financial impacts of hosted vs. premises-based IP Telephony."

Info-Tech Research Group

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