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Making The VoIP Call

Entering the IP telephony market is just the first step -- next comes choosing the solutions path to follow

ChannelWeb logo By Jennifer Hagendorf Follett & Marc Spiwak

12:00 AM EDT Mon. Mar. 26, 2007
From the March 26, 2007 issue of CRN Tech
Page 5 of 5
The Facts Of Business
Service Revenue
Solution providers on average report receiving 60/40 split on service-to-
product revenue from IP telephony engagements.

Average Deal Size
The median deal size on IP telephony deployments is about $20,000, but the average is $187,000, bolstered by large deal sizes ranging up to $3 million.

Sales Cycle
Nearly half of the respondents report that the typical sales cycle for IP telephony solutions is less than three months.

Recurring Revenue
Most IT telephony solution providers receive some recurring revenue, but nearly one-third get less than one-fourth the value of initial engagement in the fist year. Another two-thirds get from 25 cents to $50 of recurring revenue for every dollar of deployment revenue.

BASE: 56 SOLUTION PROVIDERS OFFERING IP TELEPHONY
SOURCE: CRN MONTHLY SOLUTION PROVIDER SURVEY, JANUARY 2007

IP Telephony Adoption Curve
Solution providers are of like mind when it comes to forecasting a steep adoption curve for IP telephony. A sizable 62 percent place it in the "early majority" phase, when a mass market should open up, while only 7 percent put it in a "late majority" phase.


Making Plans
The number of solution providers delivering IP telephony solutions should grow strongly. Nearly 27 percent of respondents currently sell IP telephony solutions and services, while another 24 percent are planning or considering doing so. Another 40 percent have no interest.


 
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