Microsoft expects VoIP software market to reach $40b?

Microsoft is eyeing a shift in the way businesses use telephony and sees a move to web-based phone systems, or Voice over Internet Protocol [VoIP], according to Jeff Raikes, president of Microsoft's business division. It expects 100 million business users to make VoIP calls on its Office Communications software within three years. That is more than double the size of the current VoIP business market. Reuters reports only 8% of U.S. businesses have fully incorporated VoIP technology despite 82% of them using VoIP somewhere in their network, according to the Yankee Group. Cost has been a deterrent, but Microsoft says it expects a halving of prices in the next three years. Currently Microsoft faces business VoIP competition from Avaya and Cisco. Two versions of Microsoft's Office Communications software will be available for beta testing later this month.

Sources: Press release CNET, Reuters