Every year, Software Advice speaks with hundreds of organizations looking for the right VoIP systems. We analyzed interactions with small-business buyers (those from organizations with annual revenues of $100 million or less) from 2013 and 2014 to uncover their most common pain points and reasons for replacing their phone systems. This BuyerView report details our findings.

1. Software Advice BuyerView:
VoIP Software Report 2014
Insight into today’s small-business software buyer

2. Every year, Software Advice speaks with thousands of organizations looking for
the right software. We analyzed interactions with small-business buyers (those
from organizations with annual revenues of $100 million or less) from 2013 to
2014 to uncover their most common pain points and reasons for purchasing new
software.
Key findings:
•Many small businesses have not switched from landlines and cell phones to
VoIP.
•Small businesses put a premium on both reliability and scalability when
evaluating VoIP solutions.
•Small businesses are overwhelmingly interested in hosted rather than on-
premise solutions.
Abstract

3. Many Buyers Currently Using Cell Phones and Landlines
While a good number of small businesses are currently relying on VoIP service, 45
percent still use landlines or cell phones for their telephony needs.
13%
14%
31%
42%
VoIP
Landline
Nothing
Cellular

4. Pain Points Include Lack of Reliability and Scalability
Seventeen percent of our sample wanted a higher level of reliability from their
phone systems.
Percent of sample
More reliable
Company growth
Lower price
More functionality
Better quality
Better support
More modern
Remote accessibility
Easier to use
Better security
0% 5% 10% 15% 20%

5. Majority of Buyers Favor Hosted Solutions
None of the buyers in our sample specified a preference for an on-premise
system, though a significant amount of buyers failed to specify a preference.
23%
77%
Web-based
Unspecified

6. Buyers Want Auto Attendant and Conferencing Applications
Beyond PBX systems (the core of business phone systems), auto attendants and
conferencing applications were highly popular among the buyers we spoke with.
Percent of sample
PBX system
Auto attendant
Conference calling
Internet fax
ACD
Call recording
CTI
Softphone
Predictive dialer
SIP trunking
Broadband Internet
0% 20% 40% 60% 80% 100%

7. Popular Features Include Voicemail and Voicemail-to-Email
Though caller ID and voicemail are hardly cutting-edge technologies in 2014, these
staples of business communications topped our list of popular features.
Percent of sample
Voicemail
Caller ID
Voicemail-to-email
Number portability
After-hours mode
Find me/follow me
Number customization
IVR
Remote access
Hold music
0% 10% 20% 30%

8. Buyers Want Integrated Unified Communications Solutions
An overwhelming majority of buyers specified that they’re seeking integrated
solutions rather than best-of-breed applications.
1%
76%
23%
Best-of-breed
Integrated suite only
Multiple products OK

9. Most Buyers Looking to Replace Their Phone Systems Immediately
Because phone systems are the backbones of many businesses, most buyers have
a short time frame for making a decision.
7%
1%
6%
22%
64%
30 days
1-3 months
3-6 months
1 year
Unspecified

10. Few Buyers Have Backgrounds in IT
In the small-business market niche, most buyers are business owners rather than
IT professionals. These buyers value ease of setup and maintenance.
13%
6%
39%
42%
Owner/partner
Management
IT
Other

11. Most Buyers Need Systems for 1-9 Employees
Most of the small businesses with whom we discussed phone system purchases
had fewer than 10 employees.
5%
18%
7%
11%
25%
27%
7%
1
2-4
5-9
10-14
15-19
20-50
> 51

12. Most Buyers Currently Using Fewer Than 10 Phones
62 percent of the buyers we surveyed were using 9 or fewer phones, though
many of these buyers also observed that their businesses were growing.
4%
13%
7%
14%
24%
30%
8%
1
2-4
5-9
10-14
15-19
20-49
> 50

13. Majority of Buyers Using Fewer than 10 Lines
Seventy-six percent of the buyers with whom we spoke were currently using
fewer than 10 lines.
1%9%
3%
12%
24%
41%
11%
1
2-4
5-9
10-14
15-19
20-49
> 50

14. Buyers Located in a Variety of Industries
No single industry predominated in our analysis, though buyers rendering some
kind of professional service accounted for 33 percent of our sample.
20%
4%
4%
5%
5%
5%
5% 8%
10%
33%
Professional services
Healthcare
Retail
Contact center
Legal
Manufacturing
Media and entertainment
Finance
Nonprofit
Other

15. Read the full report
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16. Software Advice™ is a trusted resource for software buyers. The company's
website, www.softwareadvice.com, provides detailed reviews, comparisons and
research to help organizations choose the right software. Meanwhile, the company’s
team of software analysts provide free telephone consultations to help each
software buyer identify systems that best fit their needs. In the process, Software
Advice connects software buyers and sellers, generating high-quality opportunities
for software vendors.
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