Forum for Science, Industry and Business

Sponsored by:     3M 
Search our Site:

 

IP PBX: The Future of Enterprise Telecommunications?

20.10.2004


The Internet protocol private branch exchange (IP PBX) market offers a ray of hope in the otherwise depressed European telecommunications industry. Encouraging developments in this market have seen enterprises beginning to replace their time division multiplexing (TDM) voice networks with IP enabled/converged voice data networks.



New analysis from Frost & Sullivan (http://www.telecom. frost.com) reveals that the total enterprise IP PBX market (including IP enabled PBX) demonstrated strong growth in 2003, generating a total revenue of EUR 589.35 million. It is forecast to continue expanding at a compound annual growth rate (CAGR) of 30.3 per cent to reach EUR 1.78 billion in 2008.

“The adoption of IP PBX is largely being driven by its advantages such as cheaper inter-office and branch office connectivity and the resulting enhanced productivity,” remarks Frost & Sullivan Telecom Analyst Shomik Banerjee.


Some of the verticals leading the way in adoption are finance, government and retail. Contact centres and medical centres are also expressing great interest in IP telephony.

Marketing efforts are shifting its focus away from cost advantages to productivity benefits. Future applications are likely to focus on business process productivity with unified communications being touted as the ‘killer application’ expected to drive adoption.

The adoption of open standards in IP goes a long way in promoting interoperability. This, in turn, benefits the customer through the availability of wider choice and variety. The increasing move to promote universal standards such as session initiation protocol (SIP) that facilitate interoperability, application development and implementation spells good news for IP PBX adoption.

In fact, SIP holds great potential to materialise into a better version of Q.SIG. Application development is easier using SIP and it could well become the de-facto signalling protocol of voice over Internet protocol (VoIP) communications.

Between IP enabled PBX and IP PBX, the former is likely to evolve as a short-term solution. In 2003, IP enabled PBX line shipments accounted for EUR 177.62 million in Europe. This figure is likely to increase at a CAGR of 19.23 per cent to EUR 428 million in 2008. IP enabled PBX line shipments are likely to increase to 2.34 million lines in 2008.

This growth is likely to be driven by the short-term capital expenditure constraints of enterprises to migrate to converged solutions. Growth of IP enabled line shipments is expected to be particularly high in 2004 and 2005 due to higher adoption in France and Germany. However, it is expected to reduce from 2006 onward due to the increased adoption of converged solutions and hosted IP telephony.

IP PBX is being viewed as the future of enterprise telecommunications. IP PBX line shipments in Europe are likely to increase from 2.96 million in 2003 to 11.96 million in 2008 mainly due to the promising growth in converged systems. Enterprises are likely to use their existing end points until they have a strong business case to migrate to the IP phones.

“Frost & Sullivan estimates that IP PBX line shipments alone accounted for EUR 411 million in Europe during 2003, which is likely to increase at a CAGR of 26.73 per cent to EUR 1.34 billion in 2008,” says Mr. Banerjee. “Legacy participants are aggressively promoting converged solutions through buy-back programmes in an effort to hold their existing accounts.”

By mid-2006, 50 per cent of all PBX sales in Europe are likely to be IP PBX. However, the technology is expected to face stiff competition from hosted IP telephony from 2006 onward.

The challenges facing the IP PBX market are many and varied. Technically, SIP is yet to mature and interoperability tests are still being carried out in labs. Security is likely to emerge as a challenge since the transport of voice through IP will increase the vulnerability of voice services to spamming and other attacks.

Financially, the cost of IP end points is still high while on the business front, IP PBX faces increasing competition from hosted IP solutions.

Among the European countries, the United Kingdom has expressed strong interest in IP telephony adoption. The techno savvy Scandinavian market is also emerging as a potential adopter. Equipment vendors are relying on the lower cost of bandwidth and public switched telephone network (PSTN) call rate to spur sales and compete against hosted solution providers in this region.

Germany has shown low adoption rates because of the huge investments made by Deutsche Telekom in laying ISDN infrastructure. France has also been cautious in its attitude toward IP telephony migration and seems to favour a system of phased migration.

If you are interested in a summary of this research service providing an introduction to the European IP PBX Equipment market, please send an email to Kristina Menzefricke, Corporate Communications at kristina.menzefricke@frost.com with the following information: full name, company name, title, contact telephone number, email. Upon receipt of the above information, the summary will be emailed to you.

Title: European IP PBX Equipment Market – Moving toward Converged Networks
Code: B465

Background
Frost & Sullivan, a global growth consulting company founded in 1961, partners with clients to create value through innovative growth strategies. The foundation of this partnership approach is our Growth Partnership Services platform, whereby we provide industry research, marketing strategies, consulting and training to our clients to help grow their business. A key benefit that Frost & Sullivan brings to its clients is a global perspective on a broad range of industries, markets, technologies, econometrics, and demographics. With a client list that includes Global 1000 companies, emerging companies, as well as the investment community, Frost & Sullivan has evolved into one of the premier growth consulting companies in the world.

For further information, please contact:

Europe
Kristina Menzefricke
P: +44 (0) 20 7343 8376
E: kristina.menzefricke@frost.com

Americas
Dustin McVey
P: +1 210 247 3830
E: dmcvey@frost.com

Katja Feick | Frost & Sullivan
Further information:
http://www.frost.com

More articles from Studies and Analyses:

nachricht Drone vs. truck deliveries: Which create less carbon pollution?
31.05.2017 | University of Washington

nachricht New study: How does Europe become a leading player for software and IT services?
03.04.2017 | Fraunhofer-Institut für System- und Innovationsforschung (ISI)

All articles from Studies and Analyses >>>

The most recent press releases about innovation >>>

Die letzten 5 Focus-News des innovations-reports im Überblick:

Im Focus: Can we see monkeys from space? Emerging technologies to map biodiversity

An international team of scientists has proposed a new multi-disciplinary approach in which an array of new technologies will allow us to map biodiversity and the risks that wildlife is facing at the scale of whole landscapes. The findings are published in Nature Ecology and Evolution. This international research is led by the Kunming Institute of Zoology from China, University of East Anglia, University of Leicester and the Leibniz Institute for Zoo and Wildlife Research.

Using a combination of satellite and ground data, the team proposes that it is now possible to map biodiversity with an accuracy that has not been previously...

Im Focus: Climate satellite: Tracking methane with robust laser technology

Heatwaves in the Arctic, longer periods of vegetation in Europe, severe floods in West Africa – starting in 2021, scientists want to explore the emissions of the greenhouse gas methane with the German-French satellite MERLIN. This is made possible by a new robust laser system of the Fraunhofer Institute for Laser Technology ILT in Aachen, which achieves unprecedented measurement accuracy.

Methane is primarily the result of the decomposition of organic matter. The gas has a 25 times greater warming potential than carbon dioxide, but is not as...

Im Focus: How protons move through a fuel cell

Hydrogen is regarded as the energy source of the future: It is produced with solar power and can be used to generate heat and electricity in fuel cells. Empa researchers have now succeeded in decoding the movement of hydrogen ions in crystals – a key step towards more efficient energy conversion in the hydrogen industry of tomorrow.

As charge carriers, electrons and ions play the leading role in electrochemical energy storage devices and converters such as batteries and fuel cells. Proton...

Im Focus: A unique data centre for cosmological simulations

Scientists from the Excellence Cluster Universe at the Ludwig-Maximilians-Universität Munich have establised "Cosmowebportal", a unique data centre for cosmological simulations located at the Leibniz Supercomputing Centre (LRZ) of the Bavarian Academy of Sciences. The complete results of a series of large hydrodynamical cosmological simulations are available, with data volumes typically exceeding several hundred terabytes. Scientists worldwide can interactively explore these complex simulations via a web interface and directly access the results.

With current telescopes, scientists can observe our Universe’s galaxies and galaxy clusters and their distribution along an invisible cosmic web. From the...

Im Focus: Scientists develop molecular thermometer for contactless measurement using infrared light

Temperature measurements possible even on the smallest scale / Molecular ruby for use in material sciences, biology, and medicine

Chemists at Johannes Gutenberg University Mainz (JGU) in cooperation with researchers of the German Federal Institute for Materials Research and Testing (BAM)...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

Plants are networkers

19.06.2017 | Event News

Digital Survival Training for Executives

13.06.2017 | Event News

Global Learning Council Summit 2017

13.06.2017 | Event News

 
Latest News

Touch Displays WAY-AX and WAY-DX by WayCon

27.06.2017 | Power and Electrical Engineering

Drones that drive

27.06.2017 | Information Technology

Ultra-compact phase modulators based on graphene plasmons

27.06.2017 | Physics and Astronomy

VideoLinks
B2B-VideoLinks
More VideoLinks >>>