Dell'Oro Sees IP PBX Growth

REDWOOD CITY, Calif. -- According to a newly published Dell'Oro Group report, IP telephony has become the technology of choice in the PBX market. Sales of IP PBX and Hybrid IP/TDM PBXs are forecasted to reach $6.1 billion in 2009, an 11 percent compound annual growth rate. Dell'Oro Group projects IP PBXs and Hybrid IP/TDM PBXs, which represented only half of the lines shipped in 2004, will comprise almost 88 percent of lines shipped by 2009, taking share from traditional TDM systems.

"Hybrid IP/TDM PBXs are currently the most popular since they allow businesses to take advantage of IP telephony capabilities, while preserving their existing investment in TDM-based lines and digital telephones," said Steve Raab, Director of IP Telephony Research at Dell'Oro Group. "While we forecast that Hybrid IP/TDM PBXs will represent a majority of sales over the next five years, sales of pure IP PBXs will achieve the highest growth rates."

According to the Dell'Oro Group report, the transition to Voice over Internet Protocol (VoIP) on the business desktop is preceding more slowly, with TDM line shipments leading IP lines sold to support IP phones until 2009. The adoption of IP phones is being slowed since businesses must upgrade their LANs to add capabilities such as Power over Ethernet in order to use VoIP.

Dell'Oro Group