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In-Stat Research Shows Growth in Hosted IP Centrex Market

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April 15, 2008

In-Stat Research Shows Growth in Hosted IP Centrex Market

By Susan J. Campbell, TMCnet Contributing Editor

For those operating in the Hosted IP Centrex market, the prognosis is very good. In-Stat (News - Alert) reports that the market continues to show steady growth in the U.S. and worldwide markets.

The firm also highlights that customer expectations and requirements vary widely, and meeting those needs requires varying levels of expertise on the part of the service providers.
"As a result, we are seeing fragmentation in the hosted IP Centrex space where some providers give customers the tools to self-install and maintain services with web-based tools, while others are more proactive in addressing and managing front-end network integration issues and the long-term data and voice communications needs of multi-site businesses," says David Lemelin, In-Stat analyst, in a Tuesday statement.
"In-Stat feels that there is ample opportunity for success in both scenarios, but it is difficult for any single provider to be all things to all customers and do so profitably."

In its research, In-Stat found that Hosted IP Centrex seats in service will reach 6.5 million in the U.S. and 14.1 million worldwide by 2012. In addition, the government vertical sector has the highest penetration of hosted IP Centrex and the real estate industry fueled much of the growth in 2006 and 2007. For now, the real estate market is proving to be relatively stagnant.

In-Stat also found that TDM Centrex seats will decline sharply as local exchange carriers continue to become more proactive in migrating customers to IP as a retention tool.

”Hosted IP Centrex: A Fragmented and Growing Market”, In-Stat’s latest research on Hosted IP Centrex covers the worldwide market. It provides forecasts for seats in service and revenues for Hosted IP Centrex in the U.S. and worldwide through 2012. The impact of this growth on the TDM Centrex market in the U.S. is also examined, and a forecast for that market through 2012 is provided.
This research is an extension of In-Stat’s Business IP Communications service. Growth in the business IP market has proven to have significant potential to disrupt the traditional telephone industry on several levels.

Service providers, equipment manufacturers and systems integrators are increasingly offering different types of business VoIP solutions, while IT managers and C-level executives recognize the cost savings and flexibility. Challenges still remain with concerns about security, integration and end-user transparency.

Advances are being made in these areas and as they continue and confidence in the technology increases, adoption will continue to rise. Disruptions are sure to continue to occur in the industry, but those ready to embrace them will emerge the winners.

Susan J. Campbell is a contributing editor for TMC (News - Alert) and has also written for To see more of her articles, please visit Susan J. Campbell’s columnist page.
Don’t forget to check out TMCnet’s White Paper Library, which provides a selection of in-depth information on relevant topics affecting the IP Communications industry. The library offers white papers, case studies and other documents which are free to registered users. Today’s featured white paper is, Best Practices in Agent Retention brought to you by Enkata.

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