In September, I covered a report from Eastern Management Group which indicated that 2010 was a good year for the PBX industry as purchases of business phone systems jumped 16% in North America and 14% worldwide. Similar sentiments are echoed by market research firm Infonetics Research in the recently released excerpts from its third quarter 2011 (3Q11) Enterprise Unified Communication, VoIP, and TDM Equipment vendor market share report.
The report confirms an impressive third quarter for the PBX industry as global phone system revenue grew 5.5% sequentially to $2.15 billion, a much needed reversal of fortunes after the sequential declines from the first two quarters of the year. As expected, Avaya holds the top slot thanks to steady shipments and healthy ASPs due to continued increases in IP endpoint sales.
Infonetics Research reveals that the global PBX market is up 6.6% on a year-over-year basis. While Unified Communications industry witnessed 15.2% sequential growth, the VoIP gateway market shrunk marginally by 1.5%. Microsoft has emerged as the surprise package for the UC industry as its Lync platform notched up 25% year-over-year growth. From a geographical perspective, EMEA was the strongest performer last quarter however the current volatile economic scenario might hurt the near-term future prospects for the PBX industry.
The report also confirms that enterprises are increasingly adopting IP-based phone systems. Hybrid IP PBXs are fast emerging as a norm rather than exception and account for a lion’s share of global revenue. In contrast, pure IP PBXs continue to grow as a proportion of the overall market while TDM PBXs sales are heading downhill with every passing quarter.
The report reaffirms Avaya’s position as the world’s leading PBX maker for the fourth consecutive quarter. It is followed closely by Cisco which posted impressive sequential and year-on-year revenue growth in Q3. In August, Cisco reported quarterly results that beat analyst’s projections after the company cut jobs and drop businesses. Chief Executive John Chambers hailed it as the ‘Next Cisco’ and the results are already beginning to show.