Small to medium-sized businesses are fueling the rapid growth of the Hosted Telephony market. According to a recent study by Frost & Sullivan, there are 8 million users on a Hosted VoIP platform in 2014 and they expect that number to grow to 42 million by the end of 2021. Such a rapid rise of users points to the fact that most new phone system installs for the SMB market are with a hosted VoIP provider.
These businesses are attracted to the Hosted VoIP Model for many reasons. Citing Frost and Sullivan, "small and medium businesses (SMBs) will account for the majority of installed users and a considerable portion of new users for these flexible, economical outsourced communications solutions". So, how do these solutions provide flexibility and economies for business?
Flexible Phone System with Hosted VoIP
- Because the actual phone system is hosted by your provider, you never have to worry about over or under building the infrastructure. The system grows and contracts with your business. You simply add phones and users as you grow or remove user accounts as you contract.
- Another advantage to your cloud-based phone system is that you can deploy resources wherever you have high speed internet. Associates can participate in your phone system communication strategy wherever they are deployed, be it the home office, satellite office, or even at home or on the road.
Economical Phone System with Hosted VoIP
- Such flexibility provides economies. Your only capital investment is in the VoIP phones themselves, not the phone system. Thus, the cost per employee is both low and sized exactly to your organization.
- Businesses also experience monthly economies regarding the phone service, which can be lower than traditional telecom providers. The ability to consolidate service across locations lends to a lower price per employee than dealing with multiple providers.
- Businesses can reassign resources previously committed to maintaining the existing phone system. Your hosted VoIP provider serves as your administrator and can handle your requirements for adjustments and changes.
- Expenses are also saved in replacement parts or external service work on the phone system. Going forward, the business does not have to worry about obsolescence, as the hosted provider bears the responsibility to keep the system and features up-to-date and reliable. As phones are needing replacement down the road, newer models will be introduced to the platform and work with older phones as well.
“Budget and resource constraints, as well as the appeal of faster access to advanced features, and the ability to supplement limited in-house IT staff, are lending momentum to hosted services among SMBs,” said Frost & Sullivan Unified Communications & Collaboration Program Director Elka Popova. This is one of the keys to moving to a Hosted VoIP system. At a very low cost, the SMB market can gain access to enterprise-level communication features that can actually advance their business and improve their own communication practices, both internally and externally.
Many small and medium-sized businesses have been delaying infrastructure investment, especially relating to the phone system replacement. Difficulty finding replacement parts or continuing to spend money maintaining the old technology is starting to press these companies into replacing the phone system. These businesses have not been early adopters of new technology and are conservative in their spending. This is why such a bubble for growth exists, as anticipated by Frost & Sullivan. Whether their system is on its last leg, or they are now convinced that the new technology is both affordable and beneficial to their business, decisions are being made every day to move to Hosted VoIP. If your business has been waiting for the right time, find a Hosted VoIP provider who will educate you and take the time to learn about your communication strategies and customize a solution that will serve you for many years to come!
About the author: Mark Greim is the Vice President of Sales and Marketing at sipVine, a provider of a variety of VoIP phone solutions and services. Mark has extensive experience working for start-up or entrepreneurial organizations and has a passion for affordable, reliable, and purposeful technology solutions in those environments.