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IP Softswitch Market Experiencing Steady Growth

TMCnews Featured Article


November 28, 2011

IP Softswitch Market Experiencing Steady Growth

By Susan J. Campbell, TMCnet Contributing Editor


The IP softswitch market is experiencing a growth trend, demonstrated by new third quarter 2011 findings from Infonetics Research (News - Alert). The firm’s latest report focuses on the Enterprise Unified Communication, VoIP and TDM Equipment vendor market share, tracking VoIP gateways, PBX (News - Alert) phone systems, the IP softswitch segment, Unified Communication (UC) applications and IP phones.



"For the fourth straight quarter, Avaya (News - Alert) leads the highly competitive PBX market, with about a quarter of the world's PBX revenue in 3Q11,” said Diane Myers, directing analyst for VoIP and IMS at Infonetics Research, in a statement.

“Avaya is holding onto its revenue lead with steady shipments and healthy ASPs due to continued increases in IP endpoint sales. Cisco (News - Alert) is a close second, posting sequential and year-over-year revenue increases in 3Q11. Cisco's overall ASPs declined in the quarter due to special promotional packages and pricing that helped spur activity," added Myers.

Highlights surrounding the IP softswitch sector include the fact that global PBX/KTS phone system revenue jumped 5.5 percent sequentially in 3Q11 to reach $2.15 billion. This growth reversed the sequential declines experienced in this space in the first two quarters of the year. When compared with the third quarter in 2010, the global PBX market is up a strong 6.6 percent, on track with a slow and steady recovery that has been recorded throughout 2011.

Beyond growth in the IP softswitch space, UC revenue also increased by 15.2 percent sequentially in the third quarter. VoIP gateways, on the other hand, experienced a small decline at 1.5 percent. The stand-out region for the quarter was EMEA as this area reversed a steady string of losses with 11.0 percent sequential growth in PBX revenue. Infonetics did state, however, that it remains cautious about EMEA due to the current economic situation.

In the Asia Pacific region, PBX revenue was reported with an 11 percent increase year-over-year. At the same time, businesses continue to migrate to IP softswitch systems. Hybrid IP PBXs still dominate, claiming nearly two-thirds of the global revenue. Pure IP PBXs continue to grow as a proportion of the overall market, claiming the remaining one-third. An overall decline continues in TBM PBXs, despite occasional growth spurts.

This latest report from Infonetics provides market share, regional market size, analysis, forecasts and more for the enterprise telephony market, including IP softswitch, TDM PBX and KTS systems, IP PBX according to system size, hybrid and pure IP PBX systems, VoIP gateways, UC applications and more.

Companies tracked in this report include Aastra, AudioCodes, Alcatel-Lucent, Avaya, Cisco, Dialogic (News - Alert), D-Link, HP, IBM, Microsoft, Mitel, NEC, NET/Quintum, Samsung, ShoreTel, Siemens, Toshiba, Vertical, and others.


Susan J. Campbell is a contributing editor for TMCnet and has also written for eastbiz.com. To read more of Susan’s articles, please visit her columnist page.

Edited by Stefania Viscusi






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