New Study Reveals $26B SMB Market For IP Communications

A recent study commissioned by Edgewater Networks and Metaswitch Networks determined that although IP adoption rates have increased over the last decade, the vast majority of Small and Medium Businesses (SMBs) are still reliant on TDM based phone services. While businesses report high interest in IP Communications services, many struggle to identify the value these services provide. To help businesses better recognize value, service providers must tailor their offerings and marketing programs to better address the needs of small to medium sized businesses.

The study – titled “The SMB Market for IP Communications and Unified Communications” – surveyed 1,250 SMB decision-makers at companies with fewer than 500 employees. Notable findings include:

• The addressable market for Hosted IP Services could be as high as $26B annually
• The majority of SMBs today are using aging TDM phone systems. The average age of TDM systems in service today is 6 years old
• The SMB market is moving to mainstream adoption of IP Communications quickly – about 70% of the survey participants say they expect to purchase IP Communications in the next two years
• The economics a service provider offers are a driving force in SMB purchasing decisions quickly followed by service provider capabilities

Service providers that can establish a trust-based relationship with customers, and offer a “hassle free” sales process have the best opportunity to gain mind/market share. “The data we’ve compiled clearly shows that SMBs are eager to adopt IP communications, but need help and guidance in order to make a smooth transition,” said John Macario, Vice President of Marketing for Edgewater Networks. “Today, customers don’t need more information on what the technology is, they need to understand how it can help their business succeed. Service providers that can craft and communicate a compelling offer and establish their ability to serve SMBs stand to gain a significant share of this expanding market.”

“I’m encouraged by the fact that IP Communications is in high demand,” said Chris Carabello, Sr. Director of Product Marketing for Metaswitch Networks. “The study found that the initial buyers of IP Communications are reaping the benefits of the technology and the mainstream market is now primed and ready for adoption.”

The full report can be downloaded here (http://pages.edgewaternetworks.com/reportstudyofthesmallandmediumbusinesssmbmarketforipcommunications).

About Edgewater Networks
Edgewater Networks has more than 12 years of experience in providing managed services platforms for the delivery of IP-based voice, videoand data services. More than 4 million Edgewater ESBC sessions are currently deployed by some of the largest service providers and enterprise organizations, including one of the two largest U.S. carriers and three of the top five U.S. cable operators. The company is developing a new patent-pending platform that employs recent advances in SDN and NFV to open new markets for service providers by allowing them to quickly and profitably deliver a new class of business services. For more information,visit www.edgewaternetworks.com.