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SIP Trunking Featured Article

November 27, 2012


Enterprise Telephony Stumbles, Unified Communications Stays Strong


By
SipTrunkingReport Contributor

If you’re in the enterprise telephony business, I have some good news, and some bad news. I’ll start with the bad news: the enterprise telephony market has had a tough year, and is down from last year. The good news is that it’s still up from last quarter, and unified communications applications are doing well.


The global enterprise PBX market is down slightly over five percent from the third quarter of last year, attributed to softness in EMEA. However, it is up nearly three percent from the previous quarter, so it hasn’t hit the downward spiral into oblivion quite yet. Still, revenue is falling faster than shipments are, as the average revenue per PBX line has fallen below $200.

Cisco is the captain of this almost-sinking ship, as it remains the PBX/KTS revenue market share leader for its fifth quarter in a row. This doesn’t mean Cisco will be facing much trouble, of course, just that the market is facing some trials that might affect Cisco more than the others.

In lighter news, UC applications are proving resilient in spite of the telephony market’s troubles. The demand for them remains high and rising, so they’ll remain afloat for quite some time to come.

“This has been a tough year for the enterprise telephony market,” says Diane Myers, Infonetics Research’s principal analyst for VoIP, UC, and IMS. “Quarterly year-over-year declines continue as businesses push out spending where existing telephony solutions still get the job done.”

Still, there’s a lighter side, as Myers adds, “That said, UC applications have been a real sweet spot. The demand for tools that aid employee productivity and flexibility is fueling growth in this segment, and Microsoft’s Lync has been the primary beneficiary, enjoying over 40% sequential growth in the third quarter.”

So, things may not be looking up for enterprise telephony, but it’s not all bleak. Still, preparations must be made to improve, lest the PBX market crash. Still, unified communications is proving as useful and in-demand as ever, so all’s well in the UC front.

Want to learn more about the latest in communications and technology? Then be sure to attend ITEXPO Miami 2013, Jan 29- Feb. 1 in Miami, Florida.  Stay in touch with everything happening at ITEXPO. Follow us on Twitter.




Edited by Brooke Neuman
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