The world enterprise telephony platforms market is experiencing healthy growth as more and more businesses realize the value of IP solutions over legacy infrastructure, and as more value-added applications are being introduced.

Chief among the benefits provided by IP telephony are the cost savings. This benefit alone, a new report by Frost & Sullivan (News - Alert) notes, is “too large to ignore.”

Not only is IP telephony critical to long-term strategic initiatives, but according to the report, “IP has emerged as the foundation for a number of technologies designed to build a new cost-efficient infrastructure for the enterprise.”

'Today, cost savings, coupled with the need for tools to create a collaborative environment, which in turn drives innovation and productivity, makes IP essential to their strategy,' Frost & Sullivan Industry Analyst, Vanessa Alvarez, said.

The report, “World Enterprise Telephony Platform Markets,” also found that while the market generated $7.6 billion in 2008, revenues will decline, and then again stabilize to $7.6 billion in 2014.

One area of the market however - line shipments - will continue to grow from 46.8 million in 2008 to 52.3 million in 2014, the report said.

For vendors in this space, analysts recommend highlighting the importance of cost savings and as a strategy for the long-term technological evolution.

In addition, the research firm notes that strategic alliances and eco-systems will both be vital for vendors in addition to value-added applications which can provide a cutting edge over the competition.

'These are critical times for vendors, and they must not only deliver the promises of IP telephony, but also stress its importance as the foundation for the next generation communications architecture,' Alvarez said.