VoIP Market to Reach $3.3 Billion by 2010. VoIP is becoming a critical and cost-effective business tool

Yankee Group: US. The business VoIP market will reach $3.3 billion in service revenue by 2010. Businesses favor VoIP because it provides measurable cost savings, an excellent converged platform for voice and data, and improves the manageability of communications. The most anticipated growth in revenue will come in the hosted VoIP market, a communications solution appealing to enterprises because it enables migration from legacy systems to a managed IP solution without incurring capital expenditure. Yankee defines the fragmented VoIP market in three divisions: VoIP over VPN, VoIP real-time QoS bandwidth and hosted VoIP. Large multinational companies leverage VoIP over VPN to eliminate long-distance toll charges for communications between sites. Verticals such as broadcasting and healthcare use VoIP real-time QoS bandwidth, which provides real-time voice, data and video applications and can carry on-net or off-net traffic. Hosted VoIP enables enterprises to save on capital expenditure on equipment and infrastructure upgrades, as well as on management contracts. Through 2010,predicts growth for these segments; the DecisionNote details the revenue breakdown for each.

The growth of the VoIP market has great potential to influence the long-term viability of the telecommunications industry. Virtually all major carriers, systems integrators and equipment vendors now offer different varieties of business VoIP services. And those that are not already exploring ways to capitalize on this revenue opportunity need to start now.

As competition becomes fiercer across all industries, enterprises are continually pressured to control—if not decrease—costs. This pressure to diminish expenses forced a rise of VoIP from an emerging technology to a critical business solution. Of the three divisions within the VoIP market, hosted VoIP is leading the pack and will continue to experience growth and fuel the industry by offering a solution for enterprises to save on capital expenditure. Business VoIP Services Poised for Dramatic Growth VoIP? Wikipeida VPN? Wikipedia Red VikingPubl 20060131