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UC market up 27%

Admire Moyo
By Admire Moyo, ITWeb news editor.
Johannesburg, 02 Jun 2014

The global unified communications market (UC) is up 27% from a year ago; as the PBX market continues to take hits.

That's according to Infonetics Research in its first quarter 2014 Enterprise Unified Communications and Voice Equipment report.

"The enterprise market continues to struggle as businesses hold off new PBX purchases and invest instead in unified communications applications," says Diane Myers, principal analyst for VOIP, UC and IMS at Infonetics Research, commenting on the report.

"Purchase cycles are getting longer, and competitive activity is putting pressure on the market with pricing all over the map," she says

According to Infonetics Research, worldwide PBX revenues were down 8% in 1Q14 from 1Q13, and 8% from 4Q13.

The market research firm says although there are pockets of growth in parts of Europe and South America, along with strength down market, none of it is large enough to lift the overall PBX market.

It points out that the UC segment is the lone bright spot, racking up a 27% worldwide revenue increase in 1Q14 from the same period a year ago.

The Caribbean and Latin America is the only region to have notched positive year-on-year PBX revenue growth in 1Q14, as economic activity picked up in anticipation of the World Cup, the research firm says.

Cisco, Avaya and NEC are the PBX market share leaders; it notes, adding that Mitel cracked the top four as a result of its merger with Aastra.

Microsoft, who leads the UC market, is the only vendor in the enterprise telephony segment to post year-on-year revenue growth in 1Q14, says Infonetics Research.

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