IHS: Businesses’ move to the cloud dampening sales of unified communications solutions

by Brianna Crandall — July 15, 2015—As businesses continue to hold off on new phone system purchases, global enterprise PBX (private branch exchange, a private telephone network used within a company) revenue fell 6% in the first quarter of 2015 (1Q15) from a year ago, according to the IHS Infonetics Enterprise Unified Communications and Voice Equipment report from global market analysis firm IHS.


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“The enterprise PBX market remains challenging, with revenue down yet again in the first quarter (Q1) of 2015. Pure IP PBX was the one segment to post year-over-year growth due to strength in Asia Pacific,” said Diane Myers, research director for VoIP, UC and IMS at IHS. “Things have started to slow on the unified communications (UC) front as well, which we attribute to movement to the cloud as businesses look for ease of management and flexibility.”

Enterprise telephony market highlights:

  • Worldwide PBX revenue (time-division multiplexing [TDM], hybrid, and pure Internet protocol [IP]) totaled $1.6 billion in Q1 2015.
  • PBX line shipments were up 3% in Q1 2015 from Q1 2014.
  • Sales of unified communications (UC) applications dropped 5% in Q1 2015 from the year-ago first quarter as enterprise spending remained conservative.
  • Pure IP PBX line shipments were a strong driver, up 17% year-over-year following a solid Q4 2014.
  • Hybrid IP PBXs accounted for around 60% of all lines shipped in Q1 2015.
  • Sales of unified communications (UC) applications dropped 5% in Q1 2015 from the year-ago first quarter as enterprise spending remained conservative.
  • In Q1 2015, the top enterprise telephony vendors are Cisco and Avaya, while Microsoft continues to dominate the UC platform market.

The quarterly IHS Infonetics Enterprise Unified Communications and Voice Equipment market research report tracks PBX phone systems (TDM, hybrid and pure IP), voice over IP (VoIP) gateways, UC applications and IP phones. The research service provides worldwide and regional market size, vendor market share, forecasts through 2019, analysis and trends. Vendors tracked include Alcatel-Lucent Enterprise, Audiocodes, Avaya, Cisco, Ericsson-LG Enterprise, Microsoft, Mitel, NEC, Polycom, Samsung, ShoreTel, Toshiba, Unify, Yealink and others. The report is available for purchase from IHS Infonetics.