Hosted IP telephony solutions can 'take cost out of the equation'

Small and medium sized businesses are drawn to hosted IP telephony solutions as they represent an affordable alternative to in-house systems, according to PlanetMagpie.

Robert Douglas, president of the technical services provider, said that a proprietary VoIP system requires extra hardware, increased communication spend as well as software costs and these additional outlays are encouraging smaller firms to consider alternative systems.

"The latest trends in VoIP are moving toward hosted VoIP solutions, which take the hardware and in-house maintenance costs out of the equation," he said.

He said also that the added cost of maintaining an in-house system was another key reason why small firms wanted to find more cost-effective hosted VoIP solutions.

Recent research has shown that the hosted IP telephony market in Europe earned revenues of €0.9 billion (£0.8 billion) in 2010 and is estimated to reach €4.9 billion (£4.3 billion) in 2016.

PlanetMagpie's insight would suggest that Frost & Sullivan's predictions for the market may well ring true as more businesses look to make savings on their hosted IP telephony solutions.