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PARSIPPANY, NJ, April 29, 2004 – According to a new study from research and consulting firm InfoTech, over two-thirds of U.S. Small and Mid-Sized Business (SMB) Centrex users are expected to convert to IP Telephony by 2008. Over half of these SMBs intend to replace Centrex with a Managed or Hosted IP Telephony service. By 2008, these services will account for more than 50% of the total SMB spending for Converged Communications, which includes IP Telephony systems, converged applications and related services.
According to Terry White, Senior Director for InfoTech’s Converged Communications practice, “Based on the results of our primary research, by 2008 the SMB revenue from Managed and Hosted IP Telephony services will approach $5B. To date, the major network service providers have been slow to respond to this rapidly increasing demand. Our research clearly demonstrates that SMBs want more than an equivalent IP version of their current Centrex service. Basic IP Centrex offers are expected to capture less than 10% of the total revenue opportunity for Managed and Hosted IP Telephony services.” This study is the first installment of InfoTech’s new InfoTrack for Converged Communications (ICC) program. In 2004, ICC will consist of four primary research studies -- two focused on SMBs, and two aimed at the Enterprise market. All four of these studies will cover the full Converged Communications landscape: IP Telephony systems, Converged Applications and Converged Services. Since 1999, InfoTech has conducted and published primary research studies on the demand for IP Telephony in the Enterprise market. The current study is the first in-depth analysis of converged communications in the SMB market. As the professional services subsidiary of PBI Media, LLC, InfoTech is among the largest market intelligence providers focused on the global telecommunications and data networking industries. InfoTech offers a comprehensive portfolio of client support services, including competitive benchmark analysis, technology demand forecasts, business decision-maker focus groups, sales support tools and collaterals, as well as custom consulting and market research. Further information about InfoTech can be obtained at www.pbimedia-infotech.com. To purchase a copy, or learn more about this study, please contact Mark Ricca, (973) 602-0124, mricca@accessintel.com.
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