The CPE Race is on ! Cisco, Avaya, Nortel, Mitel, NEC

by Guest on August 31, 2009

imagesLeading the way in the North American CPE’s race to see who the #1 Market Share company in the CPE sector is proving to be quite interesting.

At the halfway point it looks like Cisco has taken the lead, but there is a lot of year left, and some fantastic competitors.

These top 5 companies have gobbled up the lion’s share of the CPE sector, providing nearly 66% of all Customer Premise Equipment in North America.  An amazing statistic, but it’s actually down from 70% in 2008.  There are some strong competitors that are making up the rest of the market, but the top 5 are the companies to watch.

A bit about them and some explanations for their current success according to Allan Sulkin with nojitter blog:

– The “Marketing machine” that makes Cisco so ubiquitous has helped to establish the brand, while top-rated dealer support and training ensure that the support is there when the customer needs it.  Being known as the safe choice doesn’t hurt, either.

– Consistent focus on aggressive pricing has enabled Avaya to stake it’s claim on the market behind Cisco.  Bundling the UC All-in-One license fee with the Aura Communications Manager Enterprise Edition is unbeatable, and their licensing fee for the Standard Edition – only $50 – is one of the best deals around.

An aggressive pricing strategy combined with a strong product lineup allow Avaya to be a serious competitor, both at the Enterprise and especially the SMB level. As an Avaya dealer, I know that Avaya has some very aggressive (mostly Nortel targeted) discounts on right now.

A fiercely loyal customer base has allowed Nortel to hold onto the third place position.  Though they may be losing some of their market share in the high end of the market, Nortel has been able to achieve stability in the lower risk/more economical market segment.  The future of Nortel is certainly unpredictable at this point, but one thing is for sure – with a solid 12% of the market, there is still some value in Nortel.

Sulkin explains that NEC was able to slide into the 4th place position over Mitel because of their recent improvements in the larger line size segment in the past quarter.  Launching the UNIVERGE SV8500 system has allowed NEC to reclaim the customer base equipped with the NEAX2400 systems. In a welcomed change from the past, NEC is now using webinars to provide more company and product information to the consultants and analysts that can help spread the word about the changes in NEC.

Mitel has traditionally focused on the lower end of the enterprise market, but over the past few years they have been growing the capacity of their product lineup which has helped them gain more market share.  Doubling the port capacity of their flagship 3300 and acquiring Inter-Tel has provided new direct sales/service opportunities as well as a solid team, skilled in selling managed services.

Well, in the top half of the year these five companies have shown solid and consistent performance.  The competitors, many with less than 1% of the market but in total over 10%, are nibbling away at the leaders, hoping to break through the back of the pack and emerge as a real contender.  With an estimated 5.5 million line stations in F2009 – this could make, or break, these companies.


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