Traditional enterprise telephony market declines

Analyst Dell’Oro Group says the enterprise telephony market is expected to decline to $8 billion in 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,” said Alan Weckel, vice president of enterprise telephony market research at Dell’Oro Group.

“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 towards creating stand-alone cloud offerings,” said Weckel.

The Enterprise Telephony 5-Year Forecast Report also indicates IP phone growth will continue each year during the forecast period from both PBX vendors (such as Alcatel-Lucent Enterprise, Avaya, and Cisco) and third party handset makers (such as Polycom and Grandstream).