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A recent research, conducted by In-Stat, has confirmed the overwhelming appeal of multi-service business gateway (MSBG) devices to businesses that operate small, medium and branch offices.

MSBGs are defined as products purposely designed for small business and branch office applications that integrate multiple communication voice, data, and video functions into a single device.

In the research, In-Stat found that by 2012, the worldwide MSBG market would generate over USD 2.7 billion annually. It also observed that the US MSBG market would grow to nearly USD 1.7 billion in 2012.

Furthermore, the research firm found that Global MSBG shipments will grow at a 33 percent Compound Annual Growth Rate (CAGR) over the next five years.

"Due to high business failure rates, the majority of MSBG sales to SMBs will be for newly opened offices," says Keith Nissen, In-Stat analyst. Nissen further added to it saying, “in contrast, enterprise branch office MSBG installations will increasingly be equipment replacement sales."

MSBGs will be the means by which nearly all future technology is adopted in the SMB and branch office market segment, the market research firm said.