Although Cisco (News - Alert) still leads the enterprise telephony equipment market, total revenue in this sector fell by four percent during the second quarter of 2011 over the same period last year, according to new data released by Telegeography partner Synergy (News - Alert) Research Group.
Retaining its leading share of 30 percent of the market, Cisco’s position tightened as competitor Avaya gained three percentage points to hit 22 percent market share. Avaya’s share increased from 19 percent to 22 percent over the last four quarters, according to the research group.
Cisco and Avaya both have strong market positions in all regions, and have gained substantial share in the Asia-Pacific region. The two companies’ combined market share in Asia has increased by 10 percent in the past four quarters, primarily at the expense of Siemens, Alcatel-Lucent, Oki and Panasonic, Synergy Research Group said. Asia-Pacific market leader NEC’s market share has remained more stable at 24 percent.
The data also revealed that global enterprise voice equipment vendor revenues declined four percent between Q2 2010 and Q2 2011, despite a 14 percent increase in port shipments.
Synergy Research Group’s Jeremy Duke said that while enterprise telephony equipment growth is projected over the next few years, the global economy has negatively impacted the market for the short term.
“While we continue to forecast enterprise voice market growth over the next five years, global economic problems are dampening the market and constraining short-term growth,” said Duke.
He also said that while the market remains under pressure as a whole, Unified Communications (News - Alert) applications revenue continue to robustly grow, indicating enterprises are focused on the benefits of those applications.
“This is particularly evident in declining average port shipment prices over the last four quarters, and the sharp drop in enterprise voice spending in the EMEA region during the last two quarters. While the enterprise voice market is under pressure, revenues from associated Unified Communications applications continue to grow strongly, suggesting that enterprises are focusing on the efficiencies and business benefits to be gained from those applications.”