BT Takes its Hosted IP Telephony and UC Solution Across the Pond

Event Summary

June 30, 2010 – BT announces the expansion of its hosted IP telephony and UC service to businesses in the U.S. The service was initially launched in the UK in December 2009, and is based on the Cisco Hosetd Unified Communications System and BT’s Onevoice UCC portfolio. The solution can be rapidly deployed to large and small locations, to deliver cost savings as well as operational predictability to customers.

Quick Take

Analytical Summary

• Current Perspective: Moderate on BT Global Service’s plan to launch its hosted UC offer in the U.S. because the carrier is following through on previously stated plans to extend the service beyond the UK, where it was initially launched in December 2009 (please see BT and Cisco ‘HUC Up’ to Drive Global Hosted UC Services, December 17, 2009). Although enterprise uptake of hosted solutions has been slow, interest in these services is growing as companies consider the cost savings and productivity gains that these services can offer.

• Vendor Importance: High to BT, because the carrier needed to expand the potential customer base for its hosted IP telephony and UC services beyond its UK borders. BT plans to make its hosted IP telephony and UC solution available through data centers in Manhattan and Chicago, enabling the carrier to target multinational corporations (MNCs) with a presence in the U.S. BT has a strong track record serving U.S.-based multinationals, counting major corporations such as Unilever, Pepsico and Bristol-Myers Squibb as clients. The carrier can target its existing base and attract new clients with its new service.

• Market Impact: Moderate on the IP telephony and UC services market, because the market is already quite crowded with well-established U.S.-based carriers offering their own IP telephony and unified communications solutions. While not all of these competitors can address the needs of large U.S. enterprises and multinationals, carriers such as AT&T and Verizon Business as well as Global Crossing and Level 3 will present a formidable challenge to BT.

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