Study: SMB IP Communications Market Could Total $26 Billion

By Christine Kern

A study commissioned by Edgewater Networks and Metaswitch Networks has uncovered a $26 billion opportunity for IP communications in the SMB marketplace. Although IP adoption rates among small and medium business are increasing, the study found the vast majority of SMBs are still tied to TDM (time division multiplexing)-based phone services, and that many of them aren’t convinced of the value in making the transition to IP communications.

As part of the study “The SMB Market for IP Communications and Unified Communications” researchers polled 1,250 SMB decision makers at companies with fewer than 500 employees. The study found that approximately 70 percent of SMBs surveyed reported that they anticipate purchasing IP Communications in the next two years. The study also found SMB purchasing decisions are driven by the economics offered by a services provider, followed by services provider capabilities.

“The data we’ve complied clearly shows that SMBs are eager to adopt IP communications, but need help and guidance in order to make a smooth transition,” explained 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. Services 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.”

To download the report, click here.