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Cisco Tops PBX Market, Microsoft Leads in UC

Cisco was the only PBX vendor to show measurable year-over-year revenue growth in the third quarter, while Microsoft once again captured the highest unified communications (UC) revenue market share.

That’s according to IHS’s latest enterprise telephony report. Global sales of pure IP, hybrid and TDM PBX enterprise telephone systems totaled $1.6 billion in the third quarter, up almost 4 percent from the previous quarter, while UC services grew 5.4 percent.

On a year-over-year basis, however, the PBX market was down 7 percent while the UC market was flat.

“Businesses are moving purchases to recurring expense models where they pay for solutions over the course of a contract — typically three to five years,” said Diane Myers, IHS’s research director for VolP, UC and IMS. “PBX and UC licenses are recognized as they ship, but revenue isn’t recorded until the vendors report it. The shift in spending has created swings in the enterprise telephony market, causing revenue per line to fluctuate on a quarterly basis.”

Cisco led the PBX pack in the third quarter, while Avaya took the No. 2 spot. Microsoft once again took the highest UC revenue market share.

IHS projects the global PBX market will have a negative compound annual growth rate (-0.1 percent) between 2014 and 2019 as the market flattens out, settling at approximately $7 billion in 2019.

IHS tracks PBX phone systems (TDM, hybrid and pure IP), voice over IP (VoIP) gateways, UC applications and IP phones.

Vendors tracked by IHS include: Alcatel-Lucent Enterprise, Audiocodes, Avaya, Cisco, Ericsson-LG Enterprise, Microsoft, Mitel, NEC, Polycom, Samsung, ShoreTel, Toshiba, Unify, Yealink and others.


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