SOURCE: Infonetics Research

June 04, 2007 13:11 ET

2007 heating up to an interesting year for enterprise telephony

BOSTON, MA--(Marketwire - June 4, 2007) - Pure IP PBX system sales increased 3% in the first quarter of 2007 compared to the previous quarter, and are up 76% from 1Q06, according to Infonetics Research's latest "Enterprise Telephony" report.

Traditional TDM PBX phone system sales also posted a slight bump up in revenue in 1Q07 after 5 consecutive quarterly losses, but are expected to continue their overall decline, racking up a 5-year compound annual growth rate of -45% from 2006 to 2010.

"A number of important developments are sure to inject a jolt or two of excitement into the enterprise telephony market this year," said Matthias Machowinski, directing analyst at Infonetics Research. "Microsoft is launching OCS 2007 (their unified communications product), and the question on everybody's mind is what's the market impact? Will buyers abandon their PBXs in favor of a pure unified communications solution? We don't think so, at least for the short term. Also, vendor consolidation is heating up again: Inter-Tel and Mitel are planning to merge, and the industry is rife with speculation about a possible Avaya acquisition. And then there's ShoreTel's IPO, which is just around the corner. So this should be an interesting year for the PBX market."

Market Highlights

--  Overall enterprise telephony revenue is on track for another year of
    double-digit growth
--  In 1Q07, worldwide total PBX/KTS system sales inched up 1%
    sequentially, and are up 8% from a year ago in 1Q06
--  The overall market will total $11.9 billion in 2010
--  Hybrid PBX systems represent 63% of all PBX/KTS system line shipments
    worldwide in 1Q07, and will increase to 72% by 2010
--  The enterprise telephony market was flat in North America in 1Q07,
    weak in Europe, and strong in Asia Pacific
--  Avaya is the market share leader for worldwide IP PBX revenue in 1Q07,
    followed closely by Cisco and Siemens
--  Cisco maintains a strong lead in IP deskphone and IP softphone sales,
    accounting for almost half the units shipped worldwide in 1Q07
    
Infonetics' PBX report tracks TDM PBX/KTS systems, IP PBX systems with hybrid and pure IP splits, IP PBX by system size, and IP deskphones and softphones. The report tracks 3Com, Alcatel-Lucent, Avaya, Cisco, Ericsson, Inter-Tel, Linksys, Mitel, NEC, Nortel, Samsung, ShoreTel, Siemens, Tadiran, Toshiba, and others.

Download report highlights from the reports at www.info.infonetics.com. For sales, contact Larry Howard, vice president, at larry@infonetics.com or +1 (408) 583-3335.

Infonetics Research (www.infonetics.com) is an international market research and consulting firm specializing in data networking and telecom. Services include market share and forecasting, end-user survey research, service provider survey research, and service provider capex analysis.

Contact Information

  • Press Contact:
    Matthias Machowinski
    Directing Analyst, Enterprise Voice & Data
    Infonetics Research
    (781) 933-9868
    Email Contact