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In-Stat: SMB MSBG revenue to reach $1.1 billion in 2015

Posted: 06 Jun 2011 ?? ?Print Version ?Bookmark and Share

Keywords:business gateway? SMB market? multiservice business?

As the economy continues to recover and grow, small and medium-sized businesses (SMBs) will flourish, leading to the demand of technologies such as the multiservice business gateways (MSBGs). This is according to In-Stat's recent study entitled, "Multi-Service Business Gateway Worldwide Market Update." The study predicts the growth of MSBG to a revenue reaching $1.1 billion in 2015 as the demand to this technology in the SMB market increases. It is believed that MSBGs help SMBs compete with larger companies.

"The health of the MSBG market is closely linked to the health of the worldwide economy," said Norm Bogen, vice president for research at In-Stat. "Economic growth leads to the establishment of new businesses and branch offices, driving demand for MSBGs. 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, small businesses will flourish, and new technology, including the MSBG, will enable small firms to be more competitive with larger firms," Bogen said.

In a press release, In-Stat stated, "Enterprises are moving more data and services to the central data center, and increasingly, more small and medium-sized businesses (SMBs) are relying on service providers to provide hosted services. These trends are driven by cost savings that are realized through consolidation. SMBs are turning to hosted Centrex service, and enterprises are moving PBX (Private Branch Exchange) capability and SIP (Session Initiation Protocol) trunking, a VoIP solution based on SIP protocol, to the data center. Looking to support fewer infrastructures on-site, branch offices and SMBs are able to consolidate multiple services into a multiservice business gateway." This, according to the research firm, will lead to the increase of MSBG revenues in the SMB market in the coming years.

The In-stat report also revealed that revenues generated from MSBG sales are expected to grow at a lower rate than unit shipments. However, the research firm predicts that the worldwide shipments of MSBGs will approach 1.8 million units by 2015.

Among the companies, In Stat reported that Cisco has gained an overwhelming share of the MSBG market. The company also said nearly all MSBGs marketed for enterprise branch office applications will need to offer some form of unified communications functionality.

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