The first quarter results in our industry were encouraging and certainly confirmed companies are shifting to hosted IP communication solutions at a much more rapid pace. SMBs realize VoIP isn’t just about voice any more – it represents a host of rich communication experiences, while allowing them to focus on their core competency.
The proof is in the results of service providers. According to data released by Infonetics in May, U.S. service providers experienced an average of 43% year-over-year growth in Q1 for hosted IP telephony services.
As we continue to crawl our way out of the global recession, these results are a bright spot from a financial view, and deliver guaranteed long-term benefits for end-users. The immediate benefit will be costs savings, but as SMBs expand the use of more modern communication methods, they will also come to rely on new features only made possible by the integration of voice and data services.
SMBs clearly understand the immediate benefits of hosted telephony as an alternative to investing in a premises-based PBX. Outsourcing non-core services is in vogue for SMBs. They appreciate they no longer need to purchase equipment upfront and pay for “seats” they will grow into in the future. But even more important, SMBs appreciate they do not need the hassle of owning and maintaining an internal telephony network, and they can “future-proof” equipment thanks to the rapid pace of innovation. Going hosted makes sure that a SMB’s telephony infrastructure doesn’t go the way of the rotary phone.
The typical business features everyone has come to expect include voicemail, call forwarding and do-not-disturb. But not every company appreciates that their communication services can expand way beyond just voice with a hosted solution.
Other tools include a call-center application that requires only a PC and broadband connection, an auto attendant, phone and video teleconferencing, unified messaging of voicemail & email, custom ring back, video messaging or a video auto attendant for directing calls. There are also numerous ways to increase productivity directly in Microsoft Office, such as a click-to-call feature that lets you quickly and easily connect to colleagues in your contacts directory. An online presence awareness tool lets you see if a co-worker is free for a call or chat before you reach out to him – reducing interruptions. And with one click, you can escalate communications from IM to an audio call to a video call.
And all of this flexibility has never been more affordable. These types of unified phone and email communications cost an SMB up to 50 percent less than the cost of a traditional on-premise solution.
So the time is now. The companies that don’t move now to a hosted VoIP structure will rapidly find themselves at a competitive disadvantage to competitors who have switched. Switching immediately saves money, makes employees more productive and provides more ways to service customers. I’d call that a stimulus package!

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July 15, 2009 at 12:43 pm
Gary Shako
Great article! I would be curious to know what challenges a business would face when switching from one Hosted PBX VOIP provider to another, while trying to keep their existing VOIP Phones.
July 21, 2009 at 4:21 pm
Alex Doyle
Thanks, Gary, for your inquiry. This is typically more of a business issue than a technology issue. Because BroadSoft (1) supports open interfaces, (2) has a worldwide ecosystem of interop partners (250+) , (3) delivers fully integrated Device Management functionality to remotely control IP Phones, this means that service providers who use BroadSoft have a competitive advantage in this area – moving devices from one service provider to another is actually quite technically simple.
Typically, more of the challenge is on the business side: in some business models, the service provider owns the phones and CPE and ‘leases’ this to the end business; in other models, the business buys and owns the phones. So it’s more commonly the ownership of the phones that affects business processes for switching phones.
And lastly – it’s worth noting that BroadSoft-based service providers actually have very low churn rates – so this situation is pretty rare
These low churn rates are partly because of the compelling applications built into the product, like FMC and productivity clients, and also because of the innovation driven by our service provider customers via BroadSoft Xtended.
Let me know if you have additional questions.
Best,
Alex
Alex Doyle
Senior Director, Solutions
BroadSoft