COMPLIMENTARY ADVISORY REPORT

Hosted VoIP Application Servers: On the Ascent or in Decline?

| July 9, 2009 | IP Services Infrastructure | Advisory Report

| Analyst: Joe McGarvey, Principal Analyst, IP Services Infrastructure

Observers taking stock of the hosted VoIP and multimedia application server market are being confronted by a number of mixed messages and contradictions. Despite significant indications of a declining market – namely a significant falloff in overall revenue and competitor consolidation – network equipment makers are somehow optimistic about the future.

This optimism has taken the form of intensified product development by a handful of competitors, such as Alcatel-Lucent, NSN and Nortel. The future of the product category, however, is marked by several open questions. Will the general acceptance of a horizontal service delivery infrastructure by operators serve as a catalyst to the adoption of VoIP and multimedia hosted application servers? Will operators be able to entice enterprises into incrementally moving to a hosted model by initially offering IP trunking for premises-based PBXs? Can operators make a creditable case that a hosted approach to unified communications and fixed mobile convergence is more efficient and effective than a premises-based approach?

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