Thanks to growing interest from service providers in Voice over Internet Protocol, the IP telephony market is on the upswing, a recent report research found.

 

In fact, the IP telephony space grew nearly 10 percent to $782 million during the third quarter, the end result of businesses ramping up their adoption of Unified Communications (News - Alert) and IP Technologies, the Dell’Oro Group found. The increase, in part, is driven by service providers investments in infrastructure, such as VoIP, the company said.

 

What’s driving the interest?

 

“Enterprises as well as small and medium businesses increasingly embrace IP Centrex, unified communications and IP business trunks or, “SIP trunks,” and investment in equipment to support these services offers service providers attractive near-term returns and thus, has been a boost to the market,” Greg Collins, vice president at Dell’ (News - Alert)Oro Group said in a statement.

 

In addition, new VoIP phone systems are playing an increasingly larger role to help businesses boost their compete edge in the marketplace.

 

That’s good news for companies like Aculab, a U.K.-based provider of enabling technology for the communications market. The company offers solution providers and VoIP developers a range of hardware and software services to integrate into high performance, wired and wireless communications solutions.

 

As the quality of VoIP improves, more organizations, particularly, SMBs are deploying IP-only technology. Adoption of the technology is growing because of its increased efficiency and ability to tap a variety of tools and applications, Aculab’s Ian Colville (News - Alert), product manager, told TMCnet in a recent interview.

 

“Customers — whether they are businesses or service providers — are looking to deploy VoIP without having to endure the huge financial costs and disruptions associated with ‘rip and replace’ strategies,” Colville said. “Any solution that allows them to extend the lifecycle of their existing infrastructure by introducing VoIP and other IP services into the legacy network is going to receive careful consideration. So yes, we’d have to agree that we too see plenty of activity in the proliferation of VoIP.”