Multi-site SMBs More Likely to Try VoIP, Says Deloitte Survey

Discussion in 'VOIP' started by Knowing About, Oct 13, 2006.

  1. Small- and medium-sized businesses (SMB) are underserved, with
    multi-site SMBs needing choices appropriate to their more IP-centric
    communications spending, according to a survey of more than 100
    executives at small- and medium-sized businesses in Consumer Business,
    Energy, Financial Services, Healthcare, Life Sciences, Manufacturing,
    Public Sector, Real Estate, and Telecom/Media/High Tech. The survey was
    conducted by Deloitte's Technology, Media & Telecommunications
    practice.

    "SMBs are essentially being left out in the cold, despite their
    relatively high communications spending; their unmet needs make them a
    potentially very attractive market sector for VoIP services," said
    Jan Woodcock, principal, Deloitte Consulting LLP.

    According to survey respondents, there is a lack of appropriately
    scaled, affordable wireline service products for the SMB marketplace.
    Woodcock added, "Many SMBs are too large to be satisfied with a T1
    line and too small to afford or to manage a DS3 connection."

    Among the survey's key findings:

    * SMBs need tailored, scalable solutions that package voice, data,
    and
    managed services at a competitive price.

    Pricing and the lack of service and tailored solutions are the key
    disadvantages faced by SMBs. Because SMBs don't generate the same
    volume
    as large enterprises, it's difficult for them to negotiate better
    rates.
    Due to their size, they are also generally interested in tailored
    solutions that package voice, data, and managed services. Finally,
    they
    need services that can be scaled to their needs.

    * Multi-site SMBs are more IP centric, with more IP spend

    Deloitte's survey looked at wireline spending by company size and
    found
    that a company with a single site that spends $100 on voice spends
    an
    additional $27 on data. However, when the number of sites increases
    to
    between two and five, a company that spends $100 on voice spends
    $114 on
    data. The data spending jumps to $140 for those with more than five
    locations. Indeed, monthly spending per employee increases 40
    percent
    for companies with two or more locations.

    * As the number of sites increases, SMBs are more likely to turn to
    VoIP.

    According to the survey, only 18 percent of single-site companies
    use
    VoIP, compared with more than 70 percent of multi-site companies
    that
    use the technology to some degree. Approximately 30 percent of
    multi-
    site companies use both VoIP and MPLS (multi-protocol label
    switching)
    or other VPN (virtual private network) technologies, reflecting the
    SMB
    market's sophistication with IP-based services.

    * SMBs are less concerned with brand, more interested in customer
    service,
    product reliability, bundled offers, and complete service set.

    SMBs tend to act more on recommendations by trusted sources than
    focusing on brands. While pricing is obviously important to the
    SMB, so
    are bundled offers and a complete service set. Product reliability
    and
    good customer service are also key decision points.

    * Tech, Media and Telecom SMBs pay more for communication services
    than do
    life sciences and healthcare businesses.

    From an SMB industry standpoint, technology, media, and
    telecommunications companies, along with consumer businesses, spend
    the
    most per employee on communications, while life sciences and
    healthcare
    business spend the least.

    For further information about voip you can visit
    http://www.knowingabout.com/voip
    Knowing About, Oct 13, 2006
    #1
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