VoIP market set for strong growth – don’t get left behind

A report by Transparency Market Research predicted that the global VoIP services market can be expected to grow at a compound annual growth rate (CAGR) of 9.7 percent between 2014 and 2020. The market may be worth $136.76 billion by that point and the expected subscriber base may have reached almost 350 million.

This is not a market that any voip reseller would wish to miss out on – and with this kind of growth expectation, it is important to get on board very quickly indeed. Why then, might some resellers continue to let the opportunity pass them by? There are only really two obvious reasons – either they don’t think the market figures are right. Or they believe it is not worth the effort.

Any reseller thinking in this way would be wrong. As the research figures indicate, the market is certainly growing at a fast pace. You only need look at the sales performance of any of the leading players to see that this is absolutely the case. For the calendar year 2017, one leading player saw growth of more than a third in its installed base of SIP trunks and a rise of 44 percent in users of its cloud PBX offering.

These services are profitable too – and not only for the service providers themselves, but also for their resellers. The initial commission payments are attractive, and the reseller will also retain a share of the revenue generated by every seat that they deploy at their customer sites. While it is possible for customers to scale back (and this helps to convey VoIP as a risk-free option), the tendency is for the number of seats to go up once businesses have got used to using VoIP and experienced its benefits. They also tend to add more features, which adds to the revenue being generated.

While these increases might only add a small amount each customer’s spending, as the number of installations and seats grows, the revenues build up, providing the reseller with a regular flow of income every month. There is very little additional effort needed on the reseller’s part to make this happen, although good account management backed up by a reliable marketing and communications programme will certainly help.

The salient point here is that selling hosted VoIP is profitable and the income keeps building. It takes in a momentum of its own.

On this basis, it is hard to see why any reseller business would not want to offer hosted voice services. But perhaps there are other reasons. VoIP might seem more technically complex to businesses that have traditionally focused on IT and not offered communications services. These businesses might feel out of their depth or feel that it does not sit with their wider portfolio of solutions.

This, however, is more about perception than reality. Hosted VoIP services are quite easy to provision and manage and the service provider will offer more than adequate support for partners, especially in the early stages, while they are building their understanding and their skills. And communications can no longer be considered as being outside the remit of an IT business. Indeed, with many applications and services now being run in the public cloud, good and reliable connectivity has become as essential as a having a capable internal network infrastructure.

Furthermore, cloud-based voice services can provide a convenient and very acceptable first step into the cloud world for customers who continue to be unsure about its veracity. As noted earlier, hosted voice services are a risk-free option. It is quite easy for a customer to start with only a handful of seats and the simplest of packages, and then add or remove seats as they wish. Of course, no business tries out a service unless it is seriously thinking of adopting it more widely, so if the VoIP solution does its job, there is only one direction in which most trial installations will ever go.

This is another important point of note regarding VoIP – it really does work. In the past, when most businesses only had limited bandwidth and quality and reliability of broadband was not as good as it is now, VoIP could not always deliver the kind of quality that businesses needed. The wider availability of higher bandwidth and much-enhanced quality of service, along with improvements to VoIP platforms themselves, has changed that and made it extremely good and very reliable.

All these factors, along with the projected growth in the market, means that hoisted VoIP is too good an opportunity for any reseller to ignore.


0800 755 5000 or click here and we'll contact you