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Hosted IP Telephony Market May Hit $5.9 billion in 2010: Report

U.S. enterprise purchases of hosted IP telephony could grow from $310 million in 2005 to $5.9 billion in 2010, according to a new study by InfoTech.

The changeover from using traditional providers to hosted IP telephony may not happen quickly, however, the study notes. Premise-based voice platforms remain predominant, and the benefits of hosted IP telephony will be assessed closely before enterprises make the switch. According to Warren Williams, senior director for InfoTech's InfoTrack for Enterprise Services, “Although the market potential for hosted IP telephony is huge, the service providers should not underestimate the influence of the incumbent CPE providers.”

The study also found that over 90% of enterprise decision-makers require a financial impact assessment before making IT purchases. Nearly 70% of enterprises expect their key vendors to provide an objective financial analysis as part of the sales process, it added.