Demand for Managed Multi-Service Business Gateways

We're clearly in a period of global IT market transition. Enterprises are moving more applications, data and associated services to the central data center. Meanwhile, more small and medium-sized businesses (SMBs) are relying on managed service providers to deliver various types of hosted service offerings.

These trends are driven by cost savings that are realized through consolidation -- the impact reaches beyond basic data processing requirements, as it also impacts traditional voice communication needs.

SMBs are turning to hosted Centrex service, and enterprises are moving PBX capability and SIP trunking -- a VoIP solution based on SIP protocol -- to the unified data center.

Looking to support less infrastructure on-site, branch offices and SMBs are able to consolidate multiple services into a multi-service business gateway (MSBG). According to the latest market study by In-Stat, they have forecast that the growth of MSBG revenues in the SMB market will exceed $1 billion in 2015.

"The health of the MSBG market is closely linked to the health of the worldwide economy," says Norm Bogen, VP Research at In-Stat.

Economic growth leads to the establishment of new businesses and branch offices -- essentially driving new demand for MSBGs. However, the pace of new branch offices worldwide is expected to slow over the next five years, but this will be offset by acceleration in the establishment of small businesses.

As the economy recovers, new and evolving small businesses will flourish -- plus new technology, including the MSBG, will enable small firms to be more competitive with larger firms.

In-Stat's latest market study findings include:

- Revenues generated from MSBG sales are expected to grow at a lower rate than unit shipments.

- Worldwide annual shipments of MSBGs will approach 1.8 million units by 2015.

- Cisco has gained an overwhelming share of the MSBG market.

- Nearly all MSBGs marketed for enterprise branch office applications will need to offer some form of unified communications functionality.

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