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Hosted VoIP, UCC Market in North America is Sound - Has Some Challanges

TMCnews Featured Article


October 02, 2014

Hosted VoIP, UCC Market in North America is Sound - Has Some Challanges

By TMCnet Staff


The market in North America for hosted Internet protocol (IP) telephony services, as well as for unified communication & collaboration (UCC) services, has been on quite a climb of late, even if only on an anecdotal level, as more and more businesses start paying close attention to said markets and the kinds of opportunities that said markets pose for users. A new report out from Reportbuyer, meanwhile, suggests that this market is indeed one that's on the rise or at least stable on several fronts, but those getting in the market will bear a note of caution: it may not stay that way for long.


The report noted that the markets for both aforementioned sectors offers “...considerable growth opportunities...” for both service providers and platform vendors alike, so long as either class of firm can offer a unique, cost-effective, or similarly “...compelling...” tool in the field.  2013 saw the markets for both hosted IP telephony and UCC service grow, and revenues likewise grew thanks to a combination of increased overall demand and comparatively stable revenues per user.

Additionally, market growth was set to achieve a steady pace, both in terms of installed users and percentage in terms of revenue. While growth rates will decline somewhat as more users come online—it's hard to hook up new users when everyone's already hooked up—there should be regular increases in the overall size of the market, even if the market grows at a slower pace than previous years. Small and medium-sized businesses (SMBs) will likely lead the charge here in terms of growth, thanks to increasing numbers of mobile employees and employees serving remotely from a business location. Further, a generally increasing sense of confidence in voice over Internet protocol (VoIP) service will help drive the numbers steadily upward.

This is all good news, at least on the surface, but indeed there will be some limiting factors in play here. First on the list is the growth of competition in the market as providers will be moving toward mergers and acquisitions to make said providers' market presence more potent. Customers are also set to put an increasing focus on multi-instance solutions so that current infrastructure can be more readily put to use. Those firms wanting to survive in the field the longest will need to put a particular focus on customer experience and cost containment, making sure the customer is happy above all and that savings from the rest of the operation can be passed on to the customer.

Basically, the projections suggest much of what is known in most any business; the businesses that want to survive the longest will do the job better than anyone else in the field and for less expense to the customer. Naturally, some will do well with premium service at premium prices and others will do well in the value-market niche. In this regard, the hosted IP market and UCC services market is really no different from most other retail markets. So those companies who work in the field should put some real focus into innovation, into supplying that which no one else can or will, and look to keep more standard services on hand at market-beating rates.

Just how service providers react to this news should be clear in the coming weeks, but the market's trajectory seems clear: growth is ahead, particularly for the brave and vigilant willing to focus on value above all else.




Edited by Stefania Viscusi







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