Report: Enterprise telephony market shrinking beneath cloud
Cloud-based solutions continue to erode at premises-based market, reports Dell'Oro Group.
A recently published report by Dell’Oro Group, an analyst of the telecommunications, networks and data center IT industries, says that the enterprise telephony market is expected to decline to $8 billion by 2019.
“Enterprises continue to transition IT dollars away from premise solutions and towards the cloud, and we remain surprised that only a few premises-based vendors have significant revenue from cloud offerings, with the remaining premises vendors being slow to create such offerings,” comments Alan Weckel, vice president of enterprise telephony market research at Dell’Oro Group.
Weckel continues, “This is very similar to the early days of IP, where the market direction was clear but vendors were unwilling to change. During the next five years, we expect vendors to focus heavily on the cloud market and to look at both selling equipment to support cloud build-outs, and toward creating stand-alone cloud offerings."
Dell'Oro's "Enterprise Telephony 5-Year Forecast Report" also indicates that IP phone growth will continue each year during the forecast period from both PBX vendors (such as Alcatel-Lucent Enterprise, Avaya, and Cisco), as well as from third party handset makers (such as Polycom and Grandstream).