T3i Group Credits Quick ROI, Broadband Penetration and Economy for Increasing Demand in Hosted Telephony and Related Applications

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T3i Group's research has identified a much larger market for hosted services than was previously projected, not just for the U.S. SMB market targeted by specialist providers, but also for enterprises and global companies.

According to T3i Group's most recent survey of almost 300 U.S. and international Enterprise and SMB (Small/Medium Business) decision-makers, the near-term market for hosted Internet Protocol telephony (IPT) and applications is much larger than indicated by previous studies. The survey addressed global demand for hosted telephony and seven hosted applications: Contact Center, Audio Conferencing, Desktop Videoconferencing, Web Conferencing, Voice Messaging, Unified Messaging and Interactive Voice Response/Speech Recognition. In addition to the demand research, analysis included interviews with hosted service providers.

T3i Group's research identified a much larger market for hosted services than was previously projected, not just for the U.S. SMB market targeted by specialist providers, but for enterprises and global companies. Due in part to the economic downturn, service providers around the world are finding their value propositions to be of high interest, and they are successfully offering their services to companies of all sizes. The security of a fixed-rate, low-cost, quickly deployable solution that can extend functional capabilities is compelling to businesses facing both capex and opex reductions.

Bundled access is a second factor in the growth of hosted services. Companies that provide wideband access for multiple business purposes are finding that customers like the idea of consolidating their voice/PBX services with provider services.

T3i Group's "Global Market Demand for Hosted IP Telephony and Hosted - SaaS UC Applications Market Outlook" report segments current and expected hosted telephony customers by their size, implemented or planned service usage, service provider selection criteria, financial and non-financial decision-maker criteria and more than 15 unique measurements of customer satisfaction/ dissatisfaction. The research found that the selection criteria for hosted applications have shifted with growing awareness of Software as a Service (SaaS) solutions and cloud computing.

Quick ROI, defined as applications and services that pay for themselves within the first year of deployment, has become a major factor in hosted application deployment. Representing a shift from prior T3i Group research, enterprise, SMB and international decision-makers cited the same two types of service providers as being highly capable of providing quick ROI, based on two factors: 1) the inherent financial benefits of the core (IPT) hosted service and 2) the use of such cost-saving technologies as collaboration and IVR. In addition, a significant percentage of respondents now view hosted service as having more functionality than similar CPE solutions.

IT and telecom decision-makers' disinterest in hosted telephony and applications was most frequently attributed to their preference for premises-based solutions and the need for total control over systems. T3i Group's research found concern over these considerations has dropped substantially vs. earlier studies.

"Service providers who previously had little to do with the desktop, and especially not the phone system, are encroaching on the telecom vendor's turf," said Russell Horowitz, Market Research Specialist at T3i Group and author of the report. He continued, "Interest in hosted telephony and these seven hosted applications was indicated by more than 50 percent of our surveyed research panel. It is fair to say that service providers are doing a great job exhibiting their abilities to supply such advanced features as federating remote locations or administering collaborative applications by individual business departments." Enterprises of all sizes appear to be lured to advancing their capabilities and competiveness without the need to ramp up/maintain internal staffing, and to purchase expensive systems and maintenance contracts.

About the InfoTrack for Enterprise Services Program

For more information about the "InfoTrack for Enterprise Services: Global Market Demand for Hosted IP Telephony and Hosted - SaaS UC Applications Market Outlook" report, go to http://www.telecomweb.com/marketresearch/enterprisesvcs/IES/HostedIPT-SaaS or contact Bonnie Fairbrother (973/602-0181).

About T3i Group LLC

T3i Group LLC provides market research, data, analysis, and consulting and advisory services to the telecommunications industry. It has clients in 46 countries and conducts its business through four operating units: InfoTrack publishes reports that analyze shipment, revenue, market share and other pertinent data of importance to telecommunications equipment manufacturers; TelecomTactics maintains a database of the features and functionality of major telephony systems; Tarifica maintains a database of pricing-related information covering 400 telecommunications carriers operating in 130 countries; and TelecomWeb (http://www.t3igroup.com) serves as T3i Group's primary delivery mechanism for distributing its reports, analyses and data to subscribers.

T3i Group LLC is headquartered in Parsippany, N.J., with additional offices in New York City; London, England; and Cherry Hill, N.J.

Press Contact: Debra Baker, 301/905-7703

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