While all the Tier 1 service providers have had a VoIP offering for several years, the same isn't necessarily true for Tier 2 and Tier 3 carriers and ISPs, because deploying a VoIP service may stretch the limited resources for these telecom providers. To help, companies like VoIP Logic offer outsourced VoIP systems and solutions based on best-of-breed technology and best practices engineering.

To understand how this outsourced model works to support network service providers, we spoke recently with Micah Singer, Founder & CEO at VoIP Logic. VoIP Logic was founded in 2003 and has 32 employees; more than 180 active customers; and has shown a 48% compounded annual growth rate from 2003 through 2007.

The company’s solution is based on technology supplied by Nextone, Sylantro, Acme Packet, IVR Technologies, Covergence, and others. By using third-party hosted co-location facilities in New York, Los Angeles, Miami, London, Frankfurt, and Hong Kong, VoIP Logic doesn’t need to provide its own network; rather it provides an outsourced service to small and midsized carriers and ISPs that is focused on the hardware, software, support systems, engineering expertise, and 24/7 support staff needed to provide a carrier-class VoIP infrastructure.

Singer notes that the “secret sauce” to VoIP Logic’s advantage is in an operational support system (OSS) and business support system (BSS) called Cortex. Cortex is VoIP Logic’s middleware that enables service providers to provision, monitor, and bill service offerings, which provides its end-users with a single point of self-care. Cortex is a secure, unified OSS/BSS from which all the components of a multisystem VoIP rollout can be controlled. It allows easy integration of additional service modules that support current and next-generation service offerings extending VoIP to Voice 2.0, Unified Communications and Mobile VoIP. In the beginning of 2008, VoIP Logic introduced its first Cortex Web service API, which allows service providers full flexibility as they integrate with and manage their end-user feature sets, phone services, messaging and billing.

Our observations: While value-added resellers, and wholesale VoIP carriers like Level 3 and Global Crossing could also target the Tier 2 and Tier 3 carriers, we are encouraged to know that companies like VoIP Logic have a very focused and carrier-savvy approach to offer outsourced services to this niche market. The advantage offered the carriers does indeed lie within a solid OSS and BSS component, and the advantage to the enterprise is that with more choices in hosted service providers, the end user will also ultimately benefit.

Steve Taylor is president of Distributed Networking Associates and publisher/editor-in-chief of Webtorials. Larry Hettick is a principal analyst at Current Analysis.