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Infonetics Research Reports on the Decline of Enterprise PBX Market

TMCnews Featured Article


March 13, 2015

Infonetics Research Reports on the Decline of Enterprise PBX Market

By Michael Guta, TMCnet Contributing Writer


When a large enterprise decides to invest in a new technology, the evaluation process can take some time. With millions of dollars potentially on the line, they want to make sure the solution they deploy delivers as promised and is financially feasible. With so many technologies being introduced in the marketplace, it has to be carried out with caution. On the one hand these organizations don’t want to miss the opportunities the new technology will provide, and on the other, they don’t want their eagerness to cost them millions of dollars for an ineffective product or service. The new report by Infonetics (News - Alert) Research has revealed businesses are continuing to hold off the purchase and upgrade of PBX equipment.


Even though PBX equipment is an essential component for enterprises, the market is being disrupted with new technologies that is allowing organizations to forgo traditional on premises systems. With hosted solutions providing a more flexible and scalable platform at much lower price points, enterprises are increasingly questioning the need to have an on premises PBX (News - Alert) system.

“The move to the cloud is having an impact in certain markets, particularly North America,” said Diane Myers, principal analyst for VoIP, UC, and IMS at Infonetics Research (News - Alert).

According to Infonetics, the global enterprise telephony and unified communications (UC) market closed down four percent in 2014, to $8.7 billion. The report goes on to say the decline in this particular market is hiding the growth in the UC application segment, which according to the company jumped 20 percent in 2014. The growth is being driven by organizations looking to deploy workforce productivity and collaborative of solutions.

The 2014 (4Q14) and year-end Enterprise Unified Communications (News - Alert) Voice Equipment report highlights the market share, size and forecast by tracking PBX phone systems, voice over IP gateways, UC applications and IP phones.

Key data points the report revealed include:

  • Globally, PBX revenue, including TDM (time-division multiplexing) and IP PBXs, dropped six percent in 2014 from 2013, and dipped one percent in 4Q14 from 4Q13.
  • PBX line shipments declined three percent in 2014 from 2013; in 4Q14, line shipments were up four percent year-over-year, driven by pure IP PBX.
  • In 2014, the top four PBX revenue market share leaders were, in alphabetical order, Avaya, Cisco, Mitel and NEC (News - Alert).
  • Microsoft continues to see strong sales on the UC front, solidifying its position atop the unified communications market share leaderboard.

Meyers went on to say, “The enterprise telephony market continues to be tough. Just as we see one area begin to improve, it's offset by slowdowns in geographies or market segments. Underscoring the declines are not only slowing businesses purchases but also competitive pricing, which has created unpredictable swings.” 




Edited by Dominick Sorrentino







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