It seems that the recession is finally catching up with IP lines for the PBX market. The Dell’ (News - Alert)Oro Group, a firm focused on gather market information about the networking and telecommunications industries, has reported that these lines are forecasted to decline for the first time ever in 2009.
At the same time, VoIP penetration is expected to continue to grow this year, but at a slower pace compared to previous years. This result is not surprising as VoIP continues to offer significant cost savings for companies of all sizes and despite the economic pressures, a move toward unified communications is still a smart one.
“For 2009, we anticipate a degree of vendor volatility that will cause many customers to stay on the sidelines for a longer period of time than we would expect if downward pressure was coming only from the weakened economy,” commented Alan Weckel, Director at Dell’Oro Group, in a Thursday statement.
“Also, as customers look to alleviate budget constraints, IP line growth will slow in the short term, putting additional downward pressure on the market. In the current environment, some customers will hold on to existing analog and digital lines for a longer period of time,” Weckel added.
The report notes that Cisco, Avaya (News - Alert) and Nortel had the most IP line shipments in the quarter. And, despite VoIP transforming the industry for more than a decade, Dell’Oro found that the IP line shipments for the eight largest vendors in the market, namely Aastra (News - Alert), Alcatel-Lucent, Avaya, Cisco, Mitel, NEC, Nortel and Siemens averaged only 49 percent of total line shipments in the quarter.
These findings provide significant insight into what to expect out of the coming year in terms of VoIP implementations and IP for PBX (News - Alert). At the same time, the industry is changing. Even as economic pressures loom, other elements within the industry are impacting the adoption and implementation of technologies.
The promise of 4G technology is keeping a number of companies on their toes, anticipating the next wave of advancements. Mobile VoIP is presenting new opportunities altogether, yet adoption is still slower than expected as providers wait for the next generation.
For those competing in and enjoying the fruits of this industry, the game is soon to change, economic pressures notwithstanding. It is those that can embrace the changes and compete effectively that will quickly rise to the top and enjoy long-term sustainability and even comfortable growth.
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