2007 heating up to an interesting year for enterprise telephony
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 sample data at http://www.info.infonetics.com. For sales, contact Larry Howard, vice president, at or +1 (408) 583-3335.
Infonetics Research (http://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.