Low cost of VoIP key to take up in the downturn

The cost savings offered by VoIP solutions will motivate businesses to adopt them despite the recession, Frost & Sullivan has said.

The amount of money that can be saved through IP telephony solutions will see companies prepare to adopt them, in spite of severely reduced budgets.

Jayalakshmi Janakiraman, an analyst at business research and consulting firm Frost & Sullivan, said that, while businesses are "adopting aggressive cost cutting methods" due to the recession, the cost saving benefits of VoIP "will encourage them to plan for migration".

A recent study from Frost & Sullivan said that companies taking up VoIP could reduce their phone bills and make cost savings related to using a single client network infrastructure.

According to the study, while businesses are unlikely to invest in VoIP during the current economic downturn, they understand the benefits of it, meaning post-recession adoption is more likely.

Frost & Sullivan also found that the economic benefits of VoIP technology are crucial to the prospects of semiconductor companies in the VoIP market.

"The long-term cost savings associated with the adoption of VoIP is sustaining the demand for semiconductors in these applications," said Ms Janakiraman.