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IP PBXs: A Market Hitting The Tipping Point


Description: The market for Private Branch eXchange (PBX) systemsthe technology platform that allows businesses to provision a myriad of voice features and functionalities to their employeesis generally considered to be mature and, consequently, slow growing. However, there is a significant transformation of the underlying technology taking place that is creating new opportunities for vendors to rapidly grow revenue. This transformation is a result of a shift away from digital, circuit-switched voice communications toward a convergence of voice and data communications networks, signified by the use of Internet Protocol and packet switching as the underlying communications technology. Consequently, while the growth of the overall PBX market is tied closely to the rate of general economic growth, the replacement market comprised of IP-based systems is expected to grow much faster. Factors driving this growth include operational expenditure and capital expenditure savings on the part of customers, as well as the capability to deploy new productivity-enhancing applications, such as presence management and unified messaging. In-Stat/MDR expects the number of IP lines shipped in PBX systems to grow from 5.5 million in 2003 to 15.9 million by 2008.





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