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U.S. SMB IP Communications Market Opportunity

U.S. SMB IP Communications Market Opportunity . Hosted business VoIP Service CAGR for Hosted VoIP Spending 2005-2010: 57.7%. On-premise based IP-PBX systems CAGR for IP-PBX Spending 2005-2010: 23.7%. 2,984 seats. 1,755. 1,035. 625. 395. SB – Small Business (1-99 employees)

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U.S. SMB IP Communications Market Opportunity

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  1. U.S. SMB IP Communications Market Opportunity Hosted business VoIP Service CAGR for Hosted VoIP Spending 2005-2010: 57.7% On-premise based IP-PBX systems CAGR for IP-PBX Spending 2005-2010: 23.7% 2,984 seats 1,755 1,035 625 395 SB – Small Business (1-99 employees) MB – Medium Business (100-999 employees)

  2. U.S. SMB Commercial BusinessesNumber of businesses in thousands SB Employee 1-99 employees # of Business – 6.0 Million SBs MB Employee 100-999 employees # of Business – 96 Thousand MBs

  3. SMB Unified Communications and Collaboration 2.0 Unified Communications and Collaboration (UCC) Unified Communications (UC) SIP enabled BusinessApplications & Processes Enhanced Collaboration & Productivity Strategic Collaboration Unified Messaging (UM) e-Commerce Synchronous Real-Time IP Telephony Mainstream Communications Presence Mashups Synchronous Real-Time Blogs IM E-Mail Podcasts Fax Audio/Web/Video Conferencing Asynchronous Basic Messaging Portals Voice-mail Enhanced Mobility Calendaring RSS feeds Basic Mobility Team Individual Enterprise

  4. Changing Needs of SMBsAdoption of IP Communications related services

  5. U.S. SMB Purchase Channels Used For Communications Solutions Equipment Purchased In The Last 12 Months Small Businesses 1-4 Emp 5-9 Emp 10-19 Emp 20-49 Emp 50-99 Emp Medium Businesses 100-249 Emp 249-499 Emp 500-999 Emp • The sub-10 segment shows strong preference for retail • VARs/SIs presence growing and share with larger employee size (decision more IT centric) • Traditional Telco Service provider presence and share reducing over time

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