Hosted IP voice services 'not ready' to challenge PBX

Analyst firm IDC has said that hosted IP voice services are not yet ready to challenge the VoIP private telephone switch (PBX) market.

Business-leaning hosted IP voice services are fully managed, bundled VoIP telephony solutions encompassing all necessary hardware, connectivity solutions and PBX functionality.

In principal they offer a superior service to standalone VoIP PBX packages, but initial problems in rolling out the technology have dented industry confidence in the technology at its current stage of development.

"Some of the early implementations were flawed, leading to customer cancellations and botched deployments," said Rebecca Swensen, research analyst for VoIP services at IDC.

"Although there are plenty of examples of smooth implementations and satisfied customers, the stain of poor service hangs over hosted IP voice like a dark cloud."

In spite of consumer scepticism, hosted IP voice services have seen a gradual increase in demand over the past two years, and IDC anticipates the technology will eventually become a dominant technology.

The research group estimates that the US business market for hosted IP voice service will reach $456 (£225) million by the end of 2008.