Business VoIP Success Stories: A Case Study

Organizations with 100 or fewer employees account for about 98 percent of U.S. and Canadian businesses, so successfully marketing new, IP-based communications services to these organizations is a strategic imperative for many service providers and can be an important source of new revenue growth.

IP telephony penetration is about 17 percent of small and medium-sized businesses in both the United States and Canada according to John Macario, President of Savatar. While the market is at an early stage of development, Frost & Sullivan researchers forecast the hosted IP telephony market will grow to over $5 billion in annual revenues in 2012, representing as many as seven million seats and a CAGR of 47%.

However, the total U.S. IP communications and managed services opportunities in the SMB space dwarf what is obtainable exclusively from hosted IP telephony. Managed security, managed backup, business continuity, managed networks, VPNs, Unified Communications, and Web hosting in the U.S. SMB space was estimated to be over $30 billion for 2007 and will grow at a CAGR of nearly 16% out to 2010, according to researchers at AMI-Partners.