IP has emerged today as an important foundation for enterprises looking to build cost effective infrastructure.

 

VoIP, and the cost benefits it provides, are a major benefit, “too large to ignore,” a recent report from Frost & Sullivan (News - Alert) notes.

 

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

 

'The challenge to adoption has been the weak value proposition at a time when cost savings were not a priority for CIOs,' said Frost & Sullivan Industry Analyst Vanessa Alvarez. '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.'

The report also found that line shipments are expected to continue experiencing growth and will increase from 46.8 million in 2008 to 52.3 million in 2014.

For vendors in this space, like VoIP equipment providers, the research firm notes the need to stress to buyers the cost-saving aspect of their offerings and the fact the IP will be a critical component for their long term strategies.

'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. 'This message should be convincingly communicated to ensure greater traction for IP telephony and significantly boost the overall technology evolution.'