Hosted to top agenda as VoIP boom continues

Analysts encourage resellers to move into the market and benefit from contracted annuity sales

Upwardly mobile: Take-up of hosted VoIP services could grow to 41 per cent by 2011.

After worldwide turnover grew more than 50 per cent for the second year in a row, channel players have claimed hosted voice over IP (VoIP) has become an attractive option for resellers.

The VoIP Services and Subscribers report from research house Infonetics has revealed that revenues from hosted VoIP and managed IP PBXs grew 52 per cent to $24bn in 2007. This built on a 66 per cent rise enjoyed by the two sectors in 2006, and Infonetics predicted that growth will continue in double digits until at least 2011.

The report predicted EMEA will become the market leader for at least the next three years, having caught up with Asia Pacific as the world’s top VoIP region. Hosted VoIP services accounted for 26 per cent of business revenue last year, but Infonetics has forecast it will eat into the consumer share and grow to a level of 41 per cent by 2011.

The number of residential and small or home office VoIP subscribers grew 60 per cent last year and now stands at more than 75 million, with North America and EMEA both making significant gains.

Matthias Machowinski, directing analyst for Infonetics, said: “While VoIP services are being embraced by consumers worldwide, businesses have been comparatively slower in their adoption due to various road-blocks. This is about to change, however, as technical issues are resolved.”

Mike Webb, chief executive of hosted VoIP vendor iHub, claimed the development of BT’s 21st Century Network could give hosted uptake a shot in the arm. “Over the next five to eight years there is a huge opportunity for hosted anything that can be driven through broadband. Although we are doing VoIP, we are looking at hosting a lot of other stuff, such as hosted Exchange and hosted Sharepoint.”

Webb also said that now is a good time for both traditional voice and data resellers to buy into hosted.

“There are significant benefits for business in having contracted annuity revenues. It gives VARs a big start to the year if they already have revenue streams.”

Dave Millett, chief operating officer at hosted VoIP vendor Inclarity, claimed hosted was still in the early adoption stage and growth could continue at a rapid pace for several years to come.

“Hosted VoIP is growing at about 50 per cent while revenues from traditional PBX lines are flat or slightly declining, which just shows the inroads hosted has made into the market,” he said.

“Customers may have already made a technological decision to go hosted so traditional PBX resellers are finding that, without a hosted option in portfolio, they are vulnerable,” added Millett.