November 28, 2005
VoIP sales outstrip legacy system sales
According to a report by Merrill Lynch, the sale of VoIP systems, for the year ended in June 2005, were higher than those for traditional systems. Traditional voice systems registered a drop of 20% whereas VoIP systems sales grew by 31% for the year. The drop in sales of legacy systems has meant that the overall growth in the telecom market was just 2% year-over-year and amounted to $ 2.24 billion.
The two top VoIP vendors, Cisco and Avaya are adopting different product strategies in order to gain market share. The solution offered by Avaya allows a company to replace its existing telephony infrastructure in a gradual manner; the slow migration to IP enables companies to get a feel of IP telephony at every step of the deployment. Cisco deployments consist of new IP deployments and new IP telephones. For the quarter ending June 2005, Cisco’s market share for pure-play VoIP products increased 15% and that of Avaya’s hybrid VoIP products grew by 14%. VoIP vendors like Alcatel, Siemens, and Nortel are actively exploring the IP-telephony option.
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