RingCentral Experiences Record Customer Growth in Past 4 Weeks as Small Businesses Adopt Cost Saving Strategies
Survey Reveals that Main Street is Rapidly Adjusting to Wall Street
Related Economic Issues
Redwood City, Calif., November 03, 2008 – RingCentral, an award-winning, multi extension hosted business phone service, today revealed new survey results demonstrating that small businesses are rapidly cutting overhead costs to adjust to the new reality of a slowing economy. The survey, completed by small business owners and entrepreneurs across the U.S., reveals that the majority of small businesses (75 percent) have been negatively impacted by the current economy. In response, the majority of small businesses (72 percent) are reducing overhead cost to work more efficiently during tight economic times. Key results:
- Main Street is reacting quickly to the Wall Street related economic issues.
- Small businesses are adopting flexible business services to work from homes
- RingCentral has experienced record customer growth in the past four weeks as small businesses look for services that help cut overhead and work more efficiently.
- The survey showed additional trends driving small business activity in this tight economy:
- Small businesses are finding creative ways to reduce overhead costs and work more efficiently in this economic downturn
- 50 percent of small businesses reducing overhead cost by cutting back on business services.
- 23 percent are reducing overhead costs by eliminating cost of physical office space
- Small businesses are moving away from the traditional, centralized office. Only 16 percent of responding small businesses have staff centralized in one physical office
- 72 percent work from a home office
- 29 percent have staff in multiple locations across the US
- 18 percent identify themselves as road warriors
Principal Analyst for the Enderle Group, Rob Enderle commented on
the survey results: “Small businesses are clearly feeling a great deal
of economic pressure this year so it is no surprise they are
interested in working with solutions providers who can provide them
with significant cost savings during these troubling times. Ring
Central exemplifies the kind of solutions provider that can help these
small business contain costs, grow, and even help them thrive in this
“Our business has felt the impact of the tightening economy in recent months and looked to RingCentral to help us reduce overhead costs and work smarter. RingCentral cut our phone bill in half and more importantly, the service allows us to work from anywhere,” said Joseph Turley, CEO of Evolution Managed Solutions (http://www.evolutionms.com), an IT services business based in Salt Lake City, Utah. “With a web site and a phone service like RingCentral, we have a virtual store front and are cutting costs by traveling less and working remotely—all while improving communications with our customers.”
“This survey shows that small businesses are reacting quickly to the recent economic downturn by looking for smart ways to reduce overhead costs,” said Vlad Shmunis, CEO of RingCentral. “RingCentral helps small businesses cut costs while running their businesses more effectively. With the flexibility to work from anywhere, RingCentral helps small businesses move forward while projecting a professional image and effectively managing customer communications.”
About the Survey
RingCentral conducted this survey from October 17 to October 24. More than 250 RingCentral small business customers answered an online survey.
RingCentral provides an award-winning, multi-extension hosted business phone system for small business. With top industry honors, including PC Magazine’s Editor’s Choice Award and Small Business Computing’s Excellence in Technology, RingCentral offers full-access to core small business phone services and helps improve productivity for tens of thousands of customers worldwide. Headquartered in Redwood City, Calif., RingCentral is privately held with backing from Sequoia Capital, Khosla Ventures and DAG Ventures. For more information, please visit: www.ringcentral.com.
For additional information,
Jennifer Dong 650-288-0485