It’s no secret that in the enterprise space, unified communications based on IP technology has taken hold.

 

And, in a few years time, the transition from old legacy infrastructure to Internet protocol-based systems is expected to really ramp up, according to Frost & Sullivan’s (News - Alert) latest “World Enterprise Telephony Platform Markets” report.

 

The benefit of cost efficiency that IP telephony offers is too large to ignore, according to Frost & Sullivan analysts, and enterprises will be forced to consider IP as a long-term strategic initiative. As the technology revolution rolls on, IP has emerged as the foundation for a number of technologies designed to build a new cost-efficient infrastructure for the enterprise.

 

The market generated $7.6 billion in 2008. Although Frost & Sullivan analysts said they expect revenues to decline and then stabilize to $7.6 billion in 2014 due to market saturation, line shipments are expected to continue growing -- increasing from 46.8 million in 2008 to 52.3 million in 2014.

 

“The challenge to adoption has been the weak value proposition at a time when cost savings were not a priority for CIOs,” said Frost & Sullivan Industry analyst Vanessa Alvarez. “Today, cost savings, coupled with the need for tools to create a collaborative environment, which in turn drives innovation and productivity, makes IP essential to their strategy.”

 

Vendors operating in this space must refine their messaging not only to stress the cost-saving aspect, but also to project it as a critical component of a long-term strategic technological evolution, analysts said. As the economy hits the path to recovery, enterprises must prepare to evolve with the fast-track developments in the technology landscape.

 

A new, cost-efficient infrastructure will help rev up business prospects and create a smarter way of working. Inability to lay the foundation of IP can be detrimental to a company's bottom line, and detract from its ability to compete in this marketplace.

 

“These are critical times for vendors, and they must not only deliver the promises of IP telephony, but also stress its importance as the foundation for the next generation communications architecture,” Alvarez said. “This message should be convincingly communicated to ensure greater traction for IP telephony and significantly boost the overall technology evolution.”