As more and more small- and medium-sized business discover the benefits of unified communications, spending increases are expected to follow, according to a new report.

 

SMBs in businesses in India are expected to spend $48.8 million on UC this year, up over 2008, a new study by Access Markets International, or AMI Partners, Inc., found. And of that amount, conferencing tools will account for 80 percent of the total India SMB UC spend, the report found.

 

“India SMBs are looking at UC as a low-cost tool to communicate effectively with customers and suppliers, as well as facilitate communication across multiple branch locations,” Sumeeta Misra, AMI’s Bangalore-based research associate said in a statement. “These SMBs seem to be finding smarter ways to cut travel costs, maximize operational efficiency and improve business and customer strategies by streamlining their communication infrastructure.”

 

Conferencing and collaboration tools such as video, audio, Web conferencing and instant messaging will make up the majority of the total UC spending, Misra said. The tools are growing in popularity for their ability to help companies cut travel costs. What’s more, the technology helps companies boost users’ efficiency.

 

Another recent study by Insight Research, predicted that the market for enterprise UC solutions, services and carrier revenues will grow five-fold between 2009 through 2014 at a compound average growth rate of 38.7 percent

 

As a result, companies like The Conference Group, a provider of audio, Web and video conferencing services, are reporting an increase in international usage of its services.

 

As India SMBs become more open to investing in new technology, vendors are developing alternative UC modes and platforms, the report said.

 

But challenges still remain with widespread adoption of UC, AMI Partners said. In order for SMBs to accept UC, India SMBs vendors and channel partners need to overcome challenges, including the need for higher bandwidth, maintenance of IP networks, and hardware expense, the company said.