SMBs are missing out on IP communications

Using IP communications can save businesses a lot of money, but new research suggests that smaller businesses may be missing out.

Edgewater Networks and Metaswitch Networks have surveyed 1,250 SMB decision-makers at companies with fewer than 500 employees. The results show that IP communication adoption rates in the SMB sector are quite low, averaging just 25 percent across companies with fewer than 100 employees, and most service providers aren't doing much to change the story.

The majority of SMBs today are using TDM (Time Division Multiplexing) phone systems and on average these systems are 6 years old. However, about 70 percent of the survey participants say they expect to purchase IP communications in the next two years.

"The data we've compiled clearly shows that SMBs are eager to adopt IP communications, but need help and guidance in order to make a smooth transition," says John Macario, Vice President of Marketing for Edgewater Networks. "Today, customers don't need more information on what the technology is, they need to understand how it can help their business succeed. Service providers that can craft and communicate a compelling offer and establish their ability to serve SMBs stand to gain a significant share of this expanding market".

If service providers can demonstrate the real-world benefits of IP communication to SMBs they could unlock a share of a market estimated to be worth around $26 billion a year.

The full report is available from the Edgewater Networks website and there's a summary of the findings in infographic form below.

Photo credit: Everett Collection / Shutterstock