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IP-based PBXs gather enterprise momentum

Enterprises are recognising the benefits of IP-based telecommunications, says a report by Frost & Sullivan. According to the research group, businesses are deploying IP solutions to cut costs and generate revenue.

Enterprises are recognising the benefits of IP-based telecommunications, says a report by Frost & Sullivan. According to the research group, businesses are deploying IP solutions to accrue the cost benefits, revenue generation and business innovation that will provide them with a competitive edge.

The report also reveals that the IP-based telecoms market generated revenues of US$1.43 billion last year, with estimates that this total will rise to US$7.26 billion by 2006.

The market has largely been led by deployments of IP-centric private branch exchange (PBX), which offer enterprises reduced administration, maintenance and fixed costs, as well as improved applications.

“One of the biggest catalysts for IP PBX sales to date has been the ability to network branch offices in an affordable fashion,” says Ronald Gruia, industry analysts, Frost & Sullivan.

The research group also predicts that legacy TDM-based PBXs will gradually be phased out as enterprises upgrade to IP-based PBXs.

“The majority of the PBX systems that were updated in anticipation of Y2K will eventually become due for a replacement or upgrade. At that time, most enterprises would elect to replace them with IP-Centric PBX systems,” adds Gruia.

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