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SMEs lead the adoption of Hosted VOIP/UC in last 6 months July 31, 2014

Posted by Dominic Black in Uncategorized.
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 illume have just finished its latest round of research and it was clear that the SME was the driving force of adoption of VoIP services. The market reached a total of 1,403,070 seats up from 1,296,266 at the end of 2013. It appears that the traditional voice channels are finally engaging strongly with Hosted VoIP and this was also demonstrated by the recent launch of Greensky from Nimans probably the largest distributor of PBX in the UK.

We are still seeing relatively disappointing growth amongst the large Enterprise, even though there are more and more providers targeting this segment. We think this is an issue of both long sales cycles and times to deploy these large deals, but also the ability of Telcos to sell UC to these types of organization. Large Enterprises are promised business transformation, increased productivity but then the same sales people who were selling them simple voice or data services are expected to be able to sell this UC promise.

We are expecting to see strong growth in the second half of the year with most providers continuing to be positive about their fortunes.

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illume latest SIP Trunking figures show that ISDN is likely to be replaced with similar number of SIP Trunks. July 31, 2014

Posted by Dominic Black in Uncategorized.
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illume latest SIP Trunking figures show that ISDN is likely to be replaced with similar number of SIP Trunks.

In the last 6 months we saw the IP/SIP trunking market continue to drive forward, with 137,000 new channels being added to the market. The market now has 1,224,773 in the UK, with the SME and large Enterprise segments driving growth throughout the period. Providers commented that a lack of good fibre in the correct places was holding back the mid market, although they saw stronger than expected growth in the SME and particularly the sub 9 market where ISDN 30 is often not appropriate and multiple ISDN 2 is too costly.

One of the areas illume was particularly interested in was the effect of substitution when users move to SIP from ISDN and whether there be less channels in the market. You would expect with the increasing use of mobile, when customers come to change their technology they would require less channels, but this does not seem to be the case. Providers commented that as with ISDN, if customers are consolidating distributed PBX estates over IPVPN, you will generally need less at the core, but even in this situation with SIP being cheaper often customer will add increased redundancy. Overall, providers reported that it was likely that the substitution effect would be less than 5%.

We also saw more providers who had traditionally only sold Hosted VoIP adopt SIP Trunking now to augment their portfolio, and this increased supply from both large and small operators is likely to stimulate the market in coming months.