The hosted services market for VoIP applications initially focused on (and found success with) smaller companies. Typically, smaller companies do not have the IT staff or the budget to install their own VoIP systems. As a result, they often rely on service providers for VoIP services that include the type of features found in large-enterprise phone networks.
Larger companies tend to deploy their own solutions because they have an IT staff and a significant budget; so it makes sense to keep core-business communications technology in-house. "However," adds Schatt, "there are some large companies scattered in myriad locations that opt for hosted services." Service providers have not focused on large-enterprise-hosted phone services, but this is likely to change in the future as telecom operators (i.e., the traditional market leaders) face new competition in the smaller-business market from competitive operators, cable operators, and other alternative service providers.
"And as the forecast period progresses, larger companies will adopt hosted services. This is attributed to several factors, including hesitance to invest in new premises equipment and an interest to upgrade satellite offices that require larger equipment installations than if the volume of users were centralized in one location — thus making a hosted service more economically feasible."
