ANALYSIS

IP-PBX Revolution

An Explosive Telecom Opportunity

Vendor Strategy and Forecasts

2002 to 2007

The convergence of data and voice communications systems is driving a revolution on communications. Enterprise networks are interconnecting to an open wide area network. The new approach depends on separating the voice functions into feature rich software that runs on open systems blade hardware servers.

IP PBXs have been relegated to small and medium systems markets initially. A market shift is coming. IP PBX systems are positioned to serve large enterprise customers. As the wide area markets move away from class 5 circuit switches to a combination of Softswitch and open systems blade computer hardware technology, so also, large PBX systems are moving to IP PBXs. A combination of software and hardware are replacing proprietary PBX systems. PBX function specific software that is used on an open systems blade server hardware platform creates an IP PBX. The blade contains a router as well as multiple processors. The IP PBX segment at $272 million in 2001 is expected to be generating revenues of $3.1 billion by 2007 (See Figure ES-3).

REPORT METHODOLOGY

This is the hundred and thirtieth report in a series of market research reports that provide forecasts in communications, telecommunications, the internet, computer, software, and telephone equipment. The project leaders take direct responsibility for writing and preparing each report. They have significant experience preparing industry studies. Forecasts are based on primary research and proprietary data bases. Forecasts reflect analysis of the market trends in the segment and related segments. Unit and dollar shipments are analyzed through consideration of dollar volume of each market participation in the segment. Installed base analysis and unit analysis is based on interviews and an information search. market share analysis includes conversations with key customers of products, industry segment leaders, marketing directors, distributors, leading market participants, opinion leaders, and companies seeking to develop measurable market share. Over 200 in depth interviews are conducted for each report with a broad range of key participants and industry leaders in the market segment.

WinterGreen Research , founded in 1985, provides strategic market assessments in telecommunications, communications equipment, health care, and advanced computer technology. Industry reports focus on opportunities that will expand existing markets or develop major new markets. The reports assess new product and service positioning strategies, new and evolving technologies, and technological impact on products, services, and markets. Market shares are provided. Leading market participants are profiled, and their marketing strategies, acquisitions, and strategic alliances are discussed. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in telecommunications and advanced computer technology markets for over 30 years.

Ellen T. Curtiss, Technical Director, co-founder of WinterGreen Research, conducts strategic and market assessments in technology-based industries. Previously she was a member of the staff of Arthur D. Little, Inc., for 23 years, most recently as Vice President of Arthur D. Little Decision Resources, specializing in strategic planning and market development services. She is a graduate of Boston University and the Program for Management Development at Harvard Graduate School of Business Administration. She is the author of recent studies on worldwide telecommunications markets and the Top Ten Telecommunications market analysis and forecasts.

Susan Eustis, President, co-founder of WinterGreen Research, has done research in communications and computer markets and applications. She holds several patents in microcomputing and parallel processing. She is the author of recent studies of the Regional Bell Operating Companies' marketing strategies, Internet equipment, a study of Internet Equipment, Worldwide Telecommunications Equipment, Top Ten Telecommunications, Digital Loop Carrier, Web Hosting, and Application Integration markets. Ms. Eustis is a graduate of Barnard College.

IP-PBX

Market Opportunities, Strategies, and Forecasts

2002-2007

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REPORT NO. S847563068546 250+ PAGES 90+ TABLES AND FIGURES 2002

IP-PBX Market Assessment