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Enterprises approach to VoIP will be “piecemeal,’ report concludes

The cost of an enterprise IP PBX phone system ranges from US$500 to US$900 per user, but the overall price escalate...


May 20, 2004  


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The cost of an enterprise IP PBX phone system ranges from US$500 to US$900 per user, but the overall price escalates rapidly when a LAN upgrade is required, according to a new report from Light Reading.

The report, entitled VoIP: The Enterprise Options, evaluates the addressable market for CPE-based and hosted services, as well as the likely takeup rates as vendors and service providers court the enterprise market.

“Product improvements and price declines have raised the appeal of VoIP,” says Daro Clark, the report’s author, “but the market’s growth will remain gradual as companies take a piecemeal approach to VoIP, enabling their business on an incremental basis.”

The latest enterprise VoIP products are analyzed in the report, together with an investigation of how RBOCs and other service providers are bolstering their lucrative telephony revenues with a range of managed IP PBX and IP Centrex services.

Key findings include:

* IP PBX systems have rejuvenated the enterprise telephony market in recent years, but enterprises looking to deploy VoIP are now faced with an abundance of hosted service alternatives;

* LAN performance issues are holding the market back. Vendors are forming LAN and IP PBX partnerships to combat Cisco’s single-sourced advantage;

* Service providers report that hosted solutions can lower the total cost of ownership by up to 20%, but require the customer to relinquish control — a trait not associated with enterprise customers, and

* Traditional Centrex customers have a shorter product cycle and thus present a more immediate addressable market than PBX customers, who will only renew PBXs every seven to ten years.

Vendors analyzed in the report include Mitel Networks Corp. Alcatel SA, Avaya Inc., Cisco Systems Inc.; NEC Corp. and Nortel Networks Ltd.

Further information is available at www.lightreading.com.