In-Stat is reporting that hosted VoIP telephony showed steady growth last year and is projecting revenues will exceed $2 billion by 2010. In-State also projects US hosted VoIP seats in service will continue to grow steadily to over 3 million in 2010, up from 373,000 in 2006. Cost savings remains the primary attraction to hosted VoIP solutions, but the value associated with business-grade solutions is resonating more strongly among businesses that are willing to pay for them.

“As business managers assess their resident ability to deploy and manage enterprise-like VoIP services, many are finding themselves lacking the capital and expertise required,” says David Lemelin, In-Stat analyst. “As a result, hosted VoIP solutions are becoming more attractive.”