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News Release from: Frost and Sullivan
Edited by the Electronicstalk Editorial
Team on 06 November 2006
VoIP expansion brings explosion in
monitoring
Benefiting from the continued trend toward voice over Internet protocol deployments, the global VoIP monitoring/management market developed significantly over the year 2005.
Benefiting from the continued trend toward voice over Internet protocol (VoIP) deployments, the global VoIP monitoring/management market developed significantly over the year 2005 One of the most notable developments in the world VoIP monitoring solution markets over the past 12 months has been the final acceptance of the technology not only by service providers and carriers, but also by large and medium enterprises
This article was originally published on Electronicstalk on 28 Jul 2006 at 8.00am (UK)
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With respect to revenue opportunities, although all end-users segment hold considerable potential, it is the telecom and cable end-user segments that are likely to offer the maximum opportunities in the future.
New analysis from Frost and Sullivan - "World VoIP monitoring solutions markets" - reveals that revenues in this market totalled $99.3 million in 2005 and can reach $513.5 million in 2012.
Over the past year, VoIP has increasingly become a mainstream technology and the resultant increase in VoIP deployments is proving a major driver for the growth of the global VoIP monitoring solutions markets.
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VoIP creates additional pressure on service providers to buy scalable solutions for monitoring and working on customer care and quality issues, as they attempt to balance operational excellence with great customer loyalty.
Hence, as service providers, carriers and enterprises continue to deploy VoIP, their demand for monitoring solutions will also witness an increase.
"Presently VoIP deployments are growing along the dimension of geographic expansion and Frost and Sullivan expects carriers to build their geography over the next couple of years and then begin adding more subscribers on that infrastructure", notes Frost and Sullivan Research Industry Manager Jessy Cavazos.
"This means that carriers will require more network equipment and also additional capacity to monitor those subscribers, thereby translating into more demand for VoIP monitoring solutions".
Nevertheless, the rapid developmental pace of triple play offerings is proving a challenge for not only telecom and cable operators, but also for test vendors.
Triple play involves a multitude of transport, signalling and application technologies, and the convergence and co-existence of various communications technologies is a significant market challenge.
While this translates into greater demand for sophisticated monitoring/management solutions, developing such solutions and bringing them to market in a timely manner and at the right price is likely to be extremely challenging for test vendors.
Also, research indicates a significant gap between orders received by vendors and the actual revenues they realised in 2005.
This is primarily due to the long deployment cycles of service providers and carriers, especially in the hardware-based VoIP monitoring solutions market.
"Although most enterprises today perceive monitoring as a cost, and not part of the VoIP deployment, they are still receptive to solutions that facilitate cost savings", says Cavazos.
"The strongest argument for VoIP monitoring is probably customer churn and vendors will do well to highlight to end users the return on investment (ROI) on their monitoring solutions and the fact that these solutions will preserve the cost benefits of VoIP".
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