Hosted VoIP Forecast: Cloudy and getting Cloudier

4/9/12 - Votacall Hosted VoIP - Boston, Massachusetts

Infonetics Research recently published a report on Hosted VoIP and UC adoption and forecasts which display that Business-Class Hosted VoIP on a path to take over the communications market. The latest and greatest is here! What is great about that phrases is that the nature of Hosted VoIP makes that phrase true day, after day, after day...everyday. So often eveyone associates Hosted VoIP with savings and it is true as over 80% of our customers are saving money, but the success of the solution is more than that. From a savings perspective it is a long term TCO savings tool that there is not a true model to anticipate the actaul overall savings this product will produce over a 10, 15, 20 or 25 year period. The flexibility of the solution removes the square peg that the legacy systems have jammed into a round hole in todays corporate environment. The mobility and on-demand nature of the solution is powerful, addictive and will provide a competitive advantage to those who embrace it. There is not a solution that can boast it is more reliable or provide greater redundantcy than a quality VoIP platform (Platforms ary from carrier to carrier - my opinion: if it is not a Class 5 switch - it is not worth the risk). Oh and I almost forgot to highlight part of the TCO value...all upgrades are included! The Legacy Equipment Manufacturers have people used to maintenance contracts, software maintenance contracts and T & M fees to actually service those contracts (both rarely include labor) none of which include upgrades. Customers must pay for every upgrade (minor or major) that is developed in their lab. It is clear based on the Infonetics Report and the Value Proposition that Hosted VoIP is the next step in communications. Below are some Highlights of the Infonetics Research Report:

ANALYST NOTE
"The revenue that service providers derive from their residential and SOHO VoIP subscribers still eclipses what they get from businesses, but the business segment is growing about twice as fast, due in large part to the surging popularity of SIP trunking and hosted VoIP and UC services. Adoption of VoIP services across both the residential and business segments continues to grow, and we expect strong global growth in VoIP service revenue over at least the next five years," expects Diane Myers, directing analyst for VoIP and IMS at Infonetics Research.

VOIP AND UC SERVICES MARKET HIGHLIGHTS
. Global service provider revenue from business and residential/SOHO VoIP services totaled nearly $58 billion in 2011, up 16% from the previous year
. The number of seats for hosted business VoIP and unified communications services is on track to more than double between 2012 and 2016
. SIP trunking service revenue jumped 128% in 2011 from the previous year, as businesses adopt SIP trunking for flexibility, centralization of resources and cost effective voice connectivity
. Demand for cloud-based services helped push hosted PBX and UC service revenue up 33% and seats up 44% in 2011
. The number of residential and SOHO VoIP subscribers grew 14% in 2011, to over 178 million worldwide, as more households opt for no fixed-line voice connection
o Two years ago, Infonetics forecast residential VoIP subscribers to reach 176 million in 2011, accurate within 1% of the actual