3 Reasons SMBs are Increasingly Using VoIP PBX Services in 2016

The buzz phrase: Unified Communications (UC), is born out of modern business necessity. VoIP providers are doing their part, in optimizing the telephony segment of UC, with cloud-based (hosted) or on-premise VoIP PBX business telephony systems. By now, nearly all businesses understand how cloud and mobile computing technologies are changing the way businesses operate. Meeting a changing customer demand always requires a fitting strategy. In this regard, here are 3 reasons SMBs are increasingly using VoIP PBX services in 2016:

      1. Consolidation in VoIP Industry
      2. Expanded Capabilities with Lower Costs
      3. Integration Capabilities Grow with Business Systems

Evidence of the Increasing Demand for VoIP services?

The evidence, of an increased demand for VoIP services by SMBs, is found in an article at online publication Fierce Telecom, called: “Cloud-Based VoIP, UC Seats to Surpass 70M Mark in 2020“, written on Sept. 23, 2016 by Sean Buckley. This article gives us some insights from an IHS Markit forecast:

“…IHS Markit said it expects the hosted VoIP and UC market revenue to reach $13 billion and total 74 million seats by 2020.”

Consolidation in VoIP Industry

The article explains why VoIP provider companies are consolidating:

“But as the market continues to scale, consolidation amongst industry continues to rise, particularly in North America. Market participants are looking for greater scalability, infrastructure maximization and cost savings. During the first half of this year, over eight deals were completed, a trend that IHS market said they expected to continue.”

The expanded networks and infrastructure the VoIP providers are acquiring through consolidation, are helping to meet the growing demand for hosted VoIP PBX systems with optimal UC integration ability. Consolidating is giving providers the ability to offer Hosted VoIP PBX systems to large and small enterprises, and the ability to make it more affordable with mass adoption.

Expanded Capabilities with Lower Costs

Getting more for your money is always a good business strategy; essentially, VoIP PBX services (hosted or on-premise) give SMBs expanded capabilities with lower costs. Unlimited calling, music on hold, call center, auto attendant, voice to email, call queuing, and more – are the features SMBs want and need to optimize workflow efficiency. The good news is these features (and more) are available to SMBs for less than their analog telephony PBX systems, and the costs are increasingly going down with industry consolidation and technological advancements.

Integration Capabilities Grow With Business Systems

The article gives us some helpful insights into this topic:

“Initially offering a set of telephony-based products, more services providers are incorporating UC features into their service suite as additional businesses ask for more features beyond a simple PBX replacement service. Diane Myers, senior research director of VoIP, UC, and IMS for IHS Markit, said in a research note that she expects service providers to add additional functions to their cloud-based voice offerings as a way to upsell and retain customers.”

Businesses and organizations are utilizing many different systems in their everyday workflow. These are increasingly cloud-based systems (SaaS, PaaS, etc.), such as CRM, WMS, ERP, accounting, sales, marketing automation, add-ons, etc.

These systems are mixed, generally, with on-premise hardware and systems; the integration of business systems creates optimal UC functionality and efficiency. Business growth is fostered with adaptable systems that can integrate and interact with automation.


SMBs are increasingly adopting cloud-based (hosted) and on-premise VoIP PBX telephony systems. This is a growing business trend around the world, with North American businesses leading the way. The 3 reasons highlighted are big reasons this trend is growing, as businesses seek to meet a growing customer demand, influenced, largely, by cloud and mobile computing technologies.

Some fundamental business strategies will never change, such as: cost-savings, more efficient systems, and ease of management; yet, the specifics do change: cloud-based integration with enterprise systems, hosted PBX telephony systems, expanded automation for streamlined UC functions, etc.

SMBs have many options when it comes to choosing their PBX telephony systems; the options and reasons we’ve discussed are leading them to increasingly choose VoIP PBX systems – both hosted and on-premise. To learn more about business VoIP PBX systems and the industries’ top providers, please contact us today.

Use our Best Price TM Tool to Find The Right Business Phone System For Your Business

Compare The Lowest Prices From Only The Best Business VoIP Providers

This will help us match you to providers
designed for your company's size.