Why do Small Enterprises opt for Peer-to-Peer IP Solutions?

Published: 1 Aug 2006

By Shomik Banerjee, Industry Analyst, Enterprise Communications

Abstract

Small enterprises (sub 20) form the last segment yet to be explored by IP telephony vendors. With several constraints such as lack of skilled technology maintenance staff, price sensitivity and CAPEX limitations affecting consumer behaviour, IP based peer-to-peer (P2P) solutions not only answers most of these challenges effectively, but also help small businesses move into the mainstream in terms of technology adoption. Several vendors have launched products for this segment in a very short time span, which underlines the segment’s growing importance in the overall landscape.

Introduction

P2P solutions had a great impact on the world of the Internet in the beginning of 2000. The music and video industry faced survival challenges in the face of this technology. The possibility of sharing and distributing content electronically, threatened the future of traditional business models for content distribution.

During this time software developers incubated businesses to create enterprise class file sharing applications. In the meanwhile, Internet based software firms such as Skype added voice capability to P2Psolutions. Instant messengers on the Internet soon added the capability. It is speculated that more than 200 million P2Pvoice application software’s have been downloaded in the last 18 months alone. Skype, with more than 100 million downloads and Vonage, with around 2 million users are the leaders in the free and subscription segments of the market.

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