Home : Networking : News

VoIP spending on the up

Companies in Europe and North America are spending more on VoIP deployments as worries over reliability ebb.

By Rene Millman, 31 Aug 2007 at 16:17

Companies are spending more on Voice over Internet Protocol (VoIP) technology and the trend is set to continue for the next couple of years, according to new research.

A survey conducted by analysts Forrester Research of 516 companies in North America and Europe found that 23 per cent of respondents have fully deployed or about to deploy IP telephony this year, up from 14 per cent last year.

The research also found that 54 per cent of companies are planning to boost spending on IP telephony kit and services this year, compared to 51 in 2006.

The study found that 35 per cent of companies expected to complete migration to IP-based telephony systems by next year. Nine in ten companies expect to have completed migration within the next five years.

Forrester said that the growth in interest in IP telephony was down to decreasing concerns over reliability of such technology and resiliency. Falling costs of equipment also played a part in its increasing popularity among organisations.

The report said that the market for IP telephony will "continue to evolve beyond basic telephony upgrades as enterprises demand increased flexibility and mobile solutions for their workers".

Forrester also said that companies thinking about deploying IP telephony should also consider unified communications when tendering for vendors.

"IP communications has evolved from a replacement technology for business telephone systems into unified communication (UC) applications that improve worker productivity and reduce business delays in reaching key decision-makers," said Elizabeth Herrell, vice president at Forrester Research.

The report also said that the costs surrounding the move to IP telephony should also be factored into calculations when embarking on such a project as "substantial network investments in gateways, QoS, security, media servers, LAN cards, switches and text equipment, as well as professional services, are required when you upgrade to IP telephony", according to the report.

Email to a friend

Print this page

< Previous Networking : News Next >