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Finance and Manufacturing Calling For More IP Telephony, Says IDC

  • 09 July, 2004 15:31

<p>NORTH SYDNEY, July 9th, 2004 – The Enterprise IP Telephony market will grow by 50% in 2004 according to IDC’s latest “Quarterly IP Telephony Enterprise Equipment” research, which examines IP Phones, Pure IP-PBXs and Enabled IP-PBXs. The 2004 growth will be fuelled by sectors such as finance and manufacturing, whereas in 2003, the sectors that contributed the most to IP Telephony deployment growth were telecommunications, government and education.</p>
<p>IDC research found increased sales of all IP telephony equipment. The IP Phone market is experiencing the highest level of competition, with increased number of SIP standards-enabled products coming into the market, not only from traditional networking vendors, but also from other IT vendors. This competition will benefit end-users, with an increased supply of phones with more functionalities at a lower cost, but may hurt the profit margins for the vendors. The IP PBX market will also continue to grow with the Pure IP-PBX solutions growing at a faster rate than the Enabled IP-PBX solutions.</p>
<p>“The Australian IP Telephony market is finally moving from an emerging market to a mature one, but enterprises are not yet ripping out their old PABX and replacing them for IP telephony equipment. ‘If it ain’t broke, why fix it?’ is the attitude most companies currently have towards IP Telephony. Most deployments are still greenfield or PABX end-of-life replacements,” said Susana Vidal, IDC Telecommunications Analyst.</p>
<p>IDC expects the overall Enterprise IP Telephony market to reach more than A$500 million in 2008, fuelled by increased IP Phones shipments and Pure and Enabled IP-PBX revenue growth. Among the vertical markets, besides finance and manufacturing growth, transportation and other sectors will add to the ongoing growth in this market.</p>
<p>“Looking forward, IP Telephony adoption will be driven mostly by ‘killer apps’ and benefits it can provide such as increased mobility, communications integration, more effective telecommuting, and wireless IP telephony, to name a few,” added Ms. Vidal.</p>
<p>Q104 IP Telephony Market Ups and Downs:</p>
<p>* Cisco is the leader in IP Phones sales in Q104, and they also led the market in 2003. Cisco also leads the Pure IP-PBX market in both 2003 and Q104.</p>
<p>* Avaya had the second position in the IP Phones market in 2003, but they have now dropped to third position. Avaya also has the second position in Pure IP-PBX in both 2003 and Q104.</p>
<p>* Alcatel leads the Enabled IP-PBX market in Q104. Alcatel has also taken over the second spot in the IP Phone market in Q104.</p>
<p>* 3Com has the third position in the Pure IP-PBX market for both 2003 and Q104.</p>
<p>* NEC is still in the fourth position for 2003 and Q104, but NEC is and will become a greater threat to most established IP Telephony players because of their large base of telephony customers and their aggressive pricing.</p>
<p>IDC’s “Quarterly IP Telephony Enterprise Equipment Tracker” includes information on IP Phones, Pure IP-PBXs and Enabled IP-PBXs, vertical splits and forecasts and analysis. Next week IDC Australia will release a special report titled “IP Telephony Reality Check” which surveyed 300 organisations.</p>
<p>To purchase IDC research, please call the IDC sales team on (61 2) 9925-5300 or email Gary Clarke on</p>
<p>For press enquiries please contact:</p>
<p>Susana Vidal</p>
<p>Analyst, Telecommunications</p>
<p>Phone: 61 2 9925 2223</p>

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