No longer reserved for deep-pocketed enterprises, VoIP solutions are now becoming increasingly user-friendly and cost-effective for small and midsize businesses (SMBs). VARs would be wise to reach out to these potential customers, according to industry experts. “These smaller organizations really weren’t addressed by the larger solutions. They really do have different needs and they’re looking for ways to improve productivity,” says Angl.

In fact, so hot is the SMB VoIP market that many vendors are jockeying for market dominance. In late April, Mitel Networks announced its plans to acquire Inter-Tel. The acquisition, valued at about $723 million, accompanies a big push into the VOIP SMB space by Cisco Systems, Nortel Networks and Microsoft. “By coming together, we move to the No. 1 position among SMBs for IP telephony,” said Don Smith, CEO of privately held Mitel Networks, in Ottawa, Canada.