Cisco Leads Red-Hot Enterprise Telephony Segment
12/10/2007 -- The enterprise telephony segment has had a rougher-than-usual time lately; for example, it dipped a surprising 1 percent in Q2 of this year. Fast forward to Q4, however, and telephony's rough patch seems to be a thing of the past.
That's good news for networking giant Cisco Systems Inc., which leapfrogged over its competitors to snag the enterprise telephony market lead.
For the record, says market watcher Infonetics Research, sales of enterprise telephony gear jumped 11 percent, reaching $2.6 billion.
Cisco led all comers, but the rising enterprise telephony tide ultimately helped lift all boats: Rivals Avaya and Nortel enjoyed a resilient Q3, too, according to Infonetics.
"The 'Big Three' [Avaya, Cisco and Nortel] had excellent quarters, all growing well into the double digits," said Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research, in a statement.
What's to account for such a large jump in enterprise telephony revenues, particularly in light of Q2's dismal showing? To a degree, according to Machowinski, it's a seasonal thing. But with 2007 revenues set to easily outpace those of 2006, seasonality isn't the only explanation, he said.
"The bump this quarter was partially due to seasonal factors, as the third quarter tends to be strong, but also because of increased demand across the board, even in the TDM segment," he said. "Overall, 2007 is on track for high single-digit growth over 2006."
Q3 marked the first quarter in which Cisco clearly outpaced its rivals, Machowski continued, noting that -- in prior quarters, at least -- Cisco and its top four rivals were locked in a bitter struggle for market-leading bragging rights.
For the quarter, hybrid PBX systems accounted for 64 percent percent of all PBX/KTS system line shipments worldwide, while pure IP lines accounted for 18 percent and TDM lines 17 percent. Elsewhere, Infonetics adds, IP phone shipments are expected to grow at a double-digit clip through 2010. --Stephen Swoyer
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