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Posted on 11/28/2005 11:21:10 PM PST by nickcarraway
VoIP system sales dwarfed those of traditional voice systems for the year ended in June 2005, according to a new research report issued Monday by investment firm Merrill Lynch.
As of June, VoIP system sales grew 31 percent year-over-year, while sales of legacy voice systems declined by 20 percent during the same period, according to the report.
The drop in sales of traditional voice systems apparently cancelled out much of the momentum VoIP system sales gave to the overall telephony market, which grew only 2 percent year-over-year, to $2.24 billion, according to New York-based Merrill Lynch.
Heightened competition between the two fastest-growing VoIP vendors - Cisco Systems and Avaya - is underscored by the separate approaches of the two vendors, the report stated.
"Avaya and Cisco have consistently gained share in the enterprise telephony market, each with a slightly differing product strategy. Avaya offers a more manageable or slower migration path to IP that does not require the replacement of a company’s existing legacy PBX voice system, while Cisco banks on “rip and replace” deals which involve a new IP infrastructure and with new IP telephones," the report explained.
As of June, market share for Cisco's pure-play VoIP products grew 15 percent quarter-over-quarter, while market share for Avaya's hybrid VoIP products grew 14 percent during the same three-month period, according to the report.
VoIP vendors Alcatel, NEC, Nortel and Siemens are "treading water in the market as a result of share loss and lower revenue from legacy systems than is being offset by IP-related revenue," the report stated. Avaya has been the beneficiary of these trends, according to the report.
Cisco's Linksys division could positively impact the SMB VoIP market by way of the elimination of local voice servers and the creation of more hosted VoIP services for SMBs.
The statistical data used in the Merrill Lynch report was gleaned from data compiled by Synergy Research, Reno, Nev., and the Dell’Oro Group, Redwood Shores, Calif.
The first company to my door that can provide broadband multi-media service (TV, local and LD phone, and broadband internet) at a reasonable price will get my business forever.
Being able to bundle my cell phone would be a hugh plus. Seriesly.
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Well, at least until something even better comes along...
Comcast does that here in Atlanta. Got another add last night and just might give them a shot since they have broadband at 6M now.
I use skype and enjoy it. It was recently bought by E-Bay so I'm waiting for E-Bay to screw it up.
I was interested in getting a wireless card for my laptop because I'm part of a crew that will lead people on a motorcycle tour in the southwest this Februrary. I noticed that all the major cariers have a policy that clearly states you can not use VOIP or any kind of internet phone services while using these laptop cards.
What are they afraid of?
The company I worked for switched to Cisco VOIP phones in July. I can't say I have noticed any problems so far. For some reason we can't use *67 to block our number, which is something that I actually need in my role. IT set it up so the number is permamnently blocked, which made it difficult when I tried to call one of our salesman who won't accept calls from blocked numbers.
Thats a programming issue, talk to your Vendor.
This is an easy fix.
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