Converging Internet telephony with hosted and desktop applications took a small step forward with Cisco's announcement this week it was working with Citrix and Microsoft.

However, Klein said the main advantage Internet-based solutions such as Skype was its ability to be used wherever someone could connect to the Internet.

Taking advantage of such mobility was getting a boost from third-party vendors such as Plantronics, which also at CeBit announced Thursday its new Voyager 510 Bluetooth headset, which allows people to use their cell phones for cell and internet calls, Klein said.

Another product announced Thursday small businesses were asking for, he said, was USRobotics' USB Internet speakerphone.