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Small firms 'drive telecoms growth'
 
Small and medium companies will be the main drivers of the European business communications market, new research has suggested.

Findings from Frost & Sullivan show that almost 90 per cent of new business telephony products released in 2007 were targeted at smaller firms and predicted the sector will fuel long-term market growth.

The European Business Telephony Markets report also suggested that the launch of unified communications applications is leading to a 'wait-and-see approach' among some companies.

In addition, the research notes that vendors are adopting software-oriented and appliance-based products, rather than hardware-based ones, to meet the needs of the small business sector.

Dorota Oviedo, research analyst with Frost & Sullivan, explained: "An appliance is a single product that bundles many capabilities, is intuitive and simple to manage and costs less.

"Vendors are using more off-the-shelf components to drive down costs and make margins."

Last week, Frost & Sullivan suggested hosting contact centre technology may be a growth area in the telecommunications market, due to the cost savings it offers businesses.

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