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<p>NORTH SYDNEY, March 21st, 2005 – The Enterprise IP Telephony market has grown 98% in 2004 in comparison to 2003, according to the latest "IDC Australia Quarterly IP Telephony Enterprise Equipment Tracker" which tracks IP Phones, Single-mode IP PBXs and Dual-mode IP PBXs. In 2004 IP Phones sales more than doubled growing 176% year over year to reach more than 200,000 IP Phones shipped in 2004.</p>
<p>2004 was a crucial year for IP Telephony in Australia as most vendors experienced double digit growth. Some vendors changed their strategy, where previously they shied away from this market, they are now pushing their offerings into the market and signing deals of IP Phones in the thousands. Although we saw no emergence of killer apps in 2004, the evolution to VoIP is well under way and now there will be no turning back.</p>
<p>Of the large deals shipments included; Westpac with Cisco, Ernst and Young with Alcatel and Victoria Office Telephony Service (VOTS) with NEC. NEC began shipments of the Victoria Government contract in Q404 and totally changed the landscape of the market. In Q404 NEC took the third spot in the IP Phones market more than five folding quarter over quarter.</p>
<p>"In 2005 we will see more strategic partnerships between equipment vendors, service providers/ISPs and systems integrators, some partnerships will also be broken as all players are trying to take a share of this buoyant market," said Susana Vidal, IDC Telecommunications Analyst.</p>
<p>IP Telephony Market Highlights for 2004:</p>
<p>* Cisco continues to lead the Australian market in both IP PBX and IP Phones with 37% market share of the overall market. Cisco is continuing to focus in the medium to large users market segment and is addressing the small market with their IPFX offering.</p>
<p>* Avaya moved closer to Cisco by the end of 2004 and now has 22% of the market. Avaya channels are now more comfortable selling their products and have been able to expand beyond their call centre customer base and penetrate other sectors of the market.</p>
<p>* Nortel is now pushing their IP Telephony products more aggressively. Despite this the third spot in the IP Phones shipments slipped away to Alcatel.</p>
<p>* Alcatel had an excellent year grabbing the 3rd spot in IP Phones sales fuelled by their Ernst and Young deal in Q304. Alcatel proved this not to be a one-time large deal as in Q404 they won a deal with the government for more than 1,000 IP Phones.</p>
<p>* NEC was the big "expected" surprise in Q404 with shipments to VOTS commencing. NEC has now the 4th spot in the IP PBX market.</p>
<p>IDC's Quarterly IP Telephony Enterprise Equipment Tracker includes information on IP Phones, Single-mode IP PBXs and Dual-mode IP PBXs, also vertical splits and forecasts and analysis.</p>
<p>To purchase this tracker, please call the IDC sales team on (61 2) 9925-2226 or email Gary Clarke on gclarke@idc.com.</p>
<p>For press enquiries please contact:
Susana Vidal
Analyst, Telecommunications
Email: svidal@idc.com
Phone: 61 2 9925 2223</p>
<p>Click here to view the press release online:
http://www.idc.com.au/press/detail.asp?releaseid=150</p>
<p>Click here to subscribe to IDC press releases and newsletters online:
http://www.idc.com.au/newsletters/register/</p>
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