Synergy Research spots latest IP telephony trends

Summary:Synergy Research Group recently reported good but not surprising news for the red hot IP telephony market. In Q2 2005, the U.

Synergy Research Group recently reported good but not surprising news for the red hot IP telephony market. In Q2 2005, the U.S. Enterprise IP Telephony market increased 24.4% sequentially and 31.2% year over year, with Alcatel, Avaya, 3Com, ShoreTel, and Cisco the top 5 vendors experiencing the most growth in that order.

Synergy stated that they are seeing some interesting trending when looking at various verticals, geographies, and organizational sizes. In an email, Jeremy Duke, the analyst firm’s president and CEO, spelled it out for us:


  1. the success of specific vertical markets (such as health care) having a stronger success rate of adoption than over other vertical markets—why this is, we are not completely certain yet, Synergy will have more visibility on this topic once we have vertical data tracking capabilities integrated into our market database system
  2. large enterprise equipment vendors (Cisco, Avaya, Nortel) beginning to get very aggressive selling in the SMB market  (especially smaller businesses with under 100 employees)-- in the U.S., this is placing  new competitive pressure on vendors such as 3Com, Mitel, ShoreTel, and Vertical, who have been very successful selling into the small business market.
  3. hosted telephony (IP Centrex /managed services) starting to see some strong market pick up, where the service provider sells Enterprise telephony as a service to the small business and the business doe not have to purchase and manage an Enterprise phone system. And if the service providers play it right, they can bundle other services (local calling, Long Distance, data services, internet services, etc)


Topics: Networking


Natalie Gagliordi is a staff writer for CBS Interactive based in Louisville, Kentucky, covering business technology for ZDNet. She previously worked as the editor of Kiosk Marketplace, an online B2B trade publication that focused on interactive self-service technology, while also contributing to additional websites that covered retail tec... Full Bio

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