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 Smart Data Transformation – Surfing the Big Wave
02.12.2016 | Fraunhofer-Institut für Angewandte Informationstechnik FIT

nachricht Climate change could outpace EPA Lake Champlain protections
18.11.2016 | University of Vermont

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: Electron highway inside crystal

Physicists of the University of Würzburg have made an astonishing discovery in a specific type of topological insulators. The effect is due to the structure of the materials used. The researchers have now published their work in the journal Science.

Topological insulators are currently the hot topic in physics according to the newspaper Neue Zürcher Zeitung. Only a few weeks ago, their importance was...

Im Focus: Significantly more productivity in USP lasers

In recent years, lasers with ultrashort pulses (USP) down to the femtosecond range have become established on an industrial scale. They could advance some applications with the much-lauded “cold ablation” – if that meant they would then achieve more throughput. A new generation of process engineering that will address this issue in particular will be discussed at the “4th UKP Workshop – Ultrafast Laser Technology” in April 2017.

Even back in the 1990s, scientists were comparing materials processing with nanosecond, picosecond and femtosesecond pulses. The result was surprising:...

Im Focus: Shape matters when light meets atom

Mapping the interaction of a single atom with a single photon may inform design of quantum devices

Have you ever wondered how you see the world? Vision is about photons of light, which are packets of energy, interacting with the atoms or molecules in what...

Im Focus: Novel silicon etching technique crafts 3-D gradient refractive index micro-optics

A multi-institutional research collaboration has created a novel approach for fabricating three-dimensional micro-optics through the shape-defined formation of porous silicon (PSi), with broad impacts in integrated optoelectronics, imaging, and photovoltaics.

Working with colleagues at Stanford and The Dow Chemical Company, researchers at the University of Illinois at Urbana-Champaign fabricated 3-D birefringent...

Im Focus: Quantum Particles Form Droplets

In experiments with magnetic atoms conducted at extremely low temperatures, scientists have demonstrated a unique phase of matter: The atoms form a new type of quantum liquid or quantum droplet state. These so called quantum droplets may preserve their form in absence of external confinement because of quantum effects. The joint team of experimental physicists from Innsbruck and theoretical physicists from Hannover report on their findings in the journal Physical Review X.

“Our Quantum droplets are in the gas phase but they still drop like a rock,” explains experimental physicist Francesca Ferlaino when talking about the...

All Focus news of the innovation-report >>>

Anzeige

Anzeige

Event News

ICTM Conference 2017: Production technology for turbomachine manufacturing of the future

16.11.2016 | Event News

Innovation Day Laser Technology – Laser Additive Manufacturing

01.11.2016 | Event News

#IC2S2: When Social Science meets Computer Science - GESIS will host the IC2S2 conference 2017

14.10.2016 | Event News

 
Latest News

Researchers identify potentially druggable mutant p53 proteins that promote cancer growth

09.12.2016 | Life Sciences

Scientists produce a new roadmap for guiding development & conservation in the Amazon

09.12.2016 | Ecology, The Environment and Conservation

Satellites, airport visibility readings shed light on troops' exposure to air pollution

09.12.2016 | Health and Medicine

VideoLinks
B2B-VideoLinks
More VideoLinks >>>