2008 US Business VoIP Overview: Stick to Fundamentals

　　The slowing economy is certain to play a role in the continued deployment of VoIP. While new entrants may be skeptical about spending in order to save, this might not be as much the case among the increasingly sizable base of existing business VoIP users who still have plenty of legacy TDM voice solutions in place. Many of these decision makers are more likely to seek solutions involving less up-front costs, or rock-solid financials than those choosing to abandon further deployment strategies. Only 34% of businesses with VoIP use it exclusively (no TDM). Deployments remain wide-ranging, and despite recent economic slowdowns, growth in all flavors of VoIP is expected to grow at mitigated levels, reaching 74% of all US businesses by 2012.

　　This report reviews the key factors driving VoIP adoption, the impact of a slowing economy, and the multiple flavors of IP finding roots in the US business market. Survey results of 639 decision makers in organizations that have adopted VoIP are reviewed. Revised line/seat and revenue forecasts through 2012 for Hosted IP Centrex and broadband IP telephony within the US are provided, along with a worldwide IP PBX line.

Executive Summary

Introduction

VoIP Is Still a Partial Solution But Gaining Broad Traction

Carrier-Provided Solutions Appeal to SMB; Premises-Based to Enterprises

Carrier-Provided VoIP Solutions Still Led by BBIPT

Many BBIPT and IP Centrex Vendors in the Mix

No Single Premises-Based Solution Reigns Supreme

IP Phones are Still Not Pervasive

Only About Half of Total Voice Lines Among Current VoIP Users are IP

IM Increasingly Has a Role in the VoIP Arena

Factors Driving VoIP Adoption

VoIP Forecasts

IP PBX Forecast

Hosted IP Centrex Forecast

Broadband IP Telephony Forecast

Implications

Methodology

Data Collection

Data Weighting

Size of Business Definitions

Glossary

List of Tables

Table 1. Status of Current VoIP Deployment

Table 2. Status of Current VoIP Deployment by Premises or Carrier Solution

Table 3. Impact of the Recent Economic Slowdown on VoIP Deployment Plans

Table 4. Current Use of Carrier-Provided vs. Premises-Based VoIP Solutions

Table 5. Currently Deployed Carrier-Provided VoIP Services

Table 6. Currently Deployed Premises-Based VoIP Solutions

Table 7. Survey-Based IP PBX Vendor Results vs. Line Shipments in the US

Table 8. Types of Phones Used for IP PBX or IP-Enabled Solutions

Table 9. Long-Term Strategies for Deploying Phones

Table 10. Proportion of Total Voice Lines Using IP

Table 11. Current Use of Public or Proprietary IM Solutions

Table 12. Current Public IM Provider

Table 13. Three Most Important Factors in Justifying the Purchase of VoIP

Table 14. Key Operational and Technical Factors to Consider in VoIP Adoption

Table 15. Worldwide IP PBX Line Shipment Forecast, 2007–2012

Table 16. Original US Hosted IP Centrex Seats in Service, 2007–2012 (in Thousands)

Table 17. Revised US Hosted IP Centrex Seats in Service, 2007–2012 (in Thousands)

Table 18. Revised US Hosted IP Centrex Revenues, 2007–2012 (US$ in Millions)

List of Figures

Figure 1. Penetration of VoIP in At Least One Location Among US Businesses

Figure 2. Premises-Based vs. Carrier-Based VoIP Solutions

Figure 3. Status of Current VoIP Deployment

Figure 4. Current Broadband IP Telephony Provider

Figure 5. Current IP Centrex Provider

Figure 6. TDM vs. IP Trunks for IP PBX Solutions

Figure 7. Provider of PBX Trunks

Figure 8. Current IP Gateway Provider

Figure 9. Proportion of Total Voice Lines Using IP by Solution Type

Figure 10. BBIPT Business Lines Deployed, 2007–2012 (in Thousands)

Figure 11. BBIPT Business Revenues, 2007–2012 ($US in Millions)