Savatar Research Shows Uptake Building; Confusion Dominating
BOSTON, Sept. 12 /PRNewswire/ -- The difficulty buying Voice-over-IP
(VoIP) for small and medium businesses (SMBs) in the U.S. hasn't dampened
enthusiasm for the technology, nor has it compelled providers to get better
connected with buyers in this lucrative market, according to new research
from telecommunications consulting firm Savatar. While the SMB market is
showing some growth -- 17 percent of SMBs out of 560 companies surveyed
have deployed VoIP versus 15 percent in Q1 2006 and 12 percent in Q3 2005
-- for those who haven't yet made the jump to VoIP, there is confusion
about what solution to buy and from whom to buy it. Seventy percent of SMB
decision makers are still unclear where to turn for the best VoIP options.
"Providers are still not generating demand for VoIP with SMBs," said
John Macario, president of Savatar. "Providers have a 'wait and see'
attitude coupled with a quote process that takes more than a month, and
that's not helping them capture the market. SMBs need to be educated about
the benefits of VoIP; they'll buy from the provider that can help them make
the decision on products that are economically advantageous for the SMB's
business."
Macario continued, "The good news is once SMBs are converted, they tend
to be highly satisfied with VoIP, would recommend it to their peers, and
are interested in buying complementary services, such as wireless."
Non-Traditional Providers Winning SMB VoIP Mindshare and Market Share
When SMBs were asked, "Whom do you think of as a business VoIP
provider?" non-traditional telecos (up 9 percent), cable companies (up 5
percent) and ISPs (up 4 percent) showed the most growth from Q1 to Q3 2006.
Wireless companies, mentioned by 9 percent of SMBs, made the survey for the
first time. "No one" dropped 4 percent (from 15 percent in Q1 2006), but
still comprised 11 percent of the market, one percentage point higher than
traditional telcos at 10 percent.
SMBs still have no preference for a particular VoIP service provider.
VARs, typically authorized partners of one of the equipment companies like
Cisco Systems, Inc. or Nortel, are cited by 38 percent of the respondents.
Non-traditional telecos, like Cbeyond, accounted for 19 percent of
purchases. No other type of provider, including incumbent telcos or ISPs,
came close to these numbers.
Economics Reigns for Buyers and Those Mulling it Over
As in Savatar's four prior studies conducted over the past 18 months,
SMBs have made their preferences clear: they want lower Total Cost of
Ownership (TCO), lower Monthly Recurring Costs (MRC), and better system
management from their VoIP systems. Sixty-nine percent say that economic
factors (TCO and MRC) are the most critical element of their
decision-making process.
"Buyers know exactly what they care about and it's not the features
that everyone wants to talk about. Providers need to drive the economic and
systems management messages home," said Macario.
Selling to the SMB - Capitalize on Satisfaction; Up-sell Complementary
Services
Providers have an opportunity to capitalize on the high satisfaction of
SMB VoIP customers by establishing referential accounts and case studies.
Once deployed, SMBs recommend VoIP at a high rate. Sixty-nine percent of
those surveyed said they would highly recommend the technology, and 22
percent said they would recommend it.
In addition, providers have follow-on sales opportunities with SMBs,
especially for services like wireless. Fifty-three percent of those who
have deployed VoIP want to buy wireless from their VoIP provider, and 43
percent of those who haven't yet deployed it, said they would purchase
wireless from their VoIP provider. SMBs are interested in consolidating
their telecommunications spending, but providers should move cautiously.
"While the fixed mobile convergence feature set is maturing, the market
is not yet there, and providers aren't yet skilled at selling basic VoIP
products," said Macario. "Trying to sell services based on the latest
market buzz is like the computer industry trying to sell the latest and
greatest processor when the operating system still crashes. Providers
should focus on developing the SMB VoIP market first, and then up-selling
their customers on useful enhancements like wireless."
"This research underscores that the SMB market is a compelling
opportunity for Level 3's business partners," said Myrle McNeal, senior
vice president of Voice Markets for Level 3 Wholesale Markets Group. "Our
sponsorship of this study is an important part of our continuing efforts to
identify actions to help our customers capitalize on the SMB opportunity."
This study, sponsored by Lucent Technologies, Level 3 Communications,
Inc. and BroadSoft, Inc., is the fifth in a series conducted by Savatar. It
offers the only definitive, detailed view of the SMB VoIP market and the
product, positioning and total cost-of-ownership factors that are driving
this industry segment.
About Savatar
Savatar is a management consulting company that helps
telecommunications clients succeed in selling VoIP solutions to the small
and medium business (SMB) market. The firm has worked with large carriers,
wholesalers, equipment providers, and software developers to define
product, establish sales channels, and optimize sales techniques for VoIP
products in the SMB market. For more information, please visit
http://www.savatar.com.
Note to Editors:
Graphics for this research are available by calling Ashley Peterson at
Bridgeman Communications at 617-742-7270 or by email
(Ashley@bridgeman.com). Interviews with John Macario, president of Savatar,
can also be arranged.
Media Contact:
Ashley Peterson
Bridgeman Communications
P: 617-742-7270
E: ashley@bridgeman.com
SOURCE Savatar
 back to top
Related links:
http://www.savatar.com
CONTACT:
Ashley Peterson for Savatar, +1-617-742-7270,
ashley@bridgeman.com
|
