What will happen to the VoIP industry during a recession?

John Edwards makes his predictions - with arguments for both sides of the story. Here’s an excerpt:

When businesses are pinched by falling revenues, they often respond by scaling back expansion plans, curtailing new initiatives and cutting back on purchases. This could be bad news for VoIP equipment makers — the vendors who build everything from servers to gateways to phones — as more businesses cancel orders, switch to products with less power or fewer features or simply never place orders. Software vendors will also likely feel the pinch as fewer businesses purchase their offerings.

While cold logic dictates that a recession should be universally distressful, there’s also good reason to believe that the VoIP industry may not be hurt as much as many other businesses. VoIP’s big draw is, and always has been, that it is cheaper than traditional telephony. So it stands to reason that as more businesses look to cut their telecom costs, many will decide to make the switch to VoIP. In fact, a recession could turn out to be VoIP’s golden moment, as more enterprises dump costly, aging telephone systems in order to take advantage of VoIP’s cost-saving potential and technological flexibility.