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SMB Market Starts to Drive Growth in Global Communications Systems.

PARSIPPANY, N.J. -- Demand from small to medium-sized businesses is beginning to drive global enterprise telecom system shipments, according to according to
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 new research from InfoTech, the market research arm of The Telecom Intelligence Group. The findings mark a significant departure from previous years when large enterprises proved the sweet spot for telecom equipment manufacturers and distributors.

Shipments of systems in the 2-40 lines category represented the highest percent of shipments globally in Q3 2005, reported the InfoTrack for Enterprise Communications (IEC (International Electrotechnical Commission, Geneva, Switzerland, www.iec.ch) An organization that sets international electrical and electronics standards founded in 1906. It is made up of national committees from over 60 countries.

IEC - International Electrotechnical Commission
) research program in its Third Quarter 2005 Report. The segment represented 29 percent of North American North American

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, 24 percent of EMEA (Europe, Middle East, Africa) Refers to that region of the world. For example, one might see products packaged differently for the UK, EMEA and Asia Pacific markets.  and 24 percent of CALA CALA Citizens Against Lawsuit Abuse
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 (Caribbean and Latin America) line shipments. Most noticeably, the CALA region showed the highest annual growth in that segment with a 34 percent increase.

The SMB (1) (Small to Medium-sized Business) Also called "SME" (small to medium-sized enterprise), it refers to companies that are larger than the small office/home office (SOHO), but not huge.  opportunity is confirmed by the Telecom Intelligence Group's TelecomTactics service, which tracks communication systems and compares their functionality. Nearly 80 percent of new enterprise telephony systems introduced in 2005 were designed for small- to mid-sized businesses or branch offices, up from 60-70 percent in recent years. Nortel's BCM BCM Baylor College of Medicine
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BCM Business Communications Manager (Nortel)
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 50, Avaya's IP Office, Mitel's SX-200 ICP (1) (Internet Cache Protocol) A protocol used by one proxy server to query another for a cached Web page without having to go to the Internet to retrieve it. See CARP and proxy server.  and Cisco's Integrated Services Router for CallManager Express have all had a major impact on this market.

"A few years ago, selling technology protection was the game, but distinctions among IP, Key and PBX (Private Branch eXchange) An inhouse telephone switching system that interconnects telephone extensions to each other as well as to the outside telephone network (PSTN).  have blurred, and the issues now are functional needs and budgets, vendor preferences, application productivity and channel effectiveness," said Susan Hobart, InfoTech Vice President and Senior Program Director for IEC. "The winning vendors will adapt with cost-effective solutions to tap the rising SMB demand. The rest will continue selling high-end systems under considerable price pressure to what is now a very mature market."

For more information on the IEC Third Quarter 2005 Report please visit http://www.telecomweb-infotech.com/iecreport3Q.html.

About InfoTech

InfoTech, part of The Telecom Intelligence Group, publishes quarterly tracking and analysis reports on business communications systems and applications as part of its InfoTrack for Enterprise Communications (IEC) program. Its next report, analyzing Fourth Quarter 2005 North America shipments and market share, will be published later this month, and will be followed by the Global report early in March. The North America report addresses PBX, Converged, Key, Messaging and ACD systems, Centrex and Hosted IP, and includes a five year revenue forecast; installed base history and projections; and shipments and share by line size segment. The Global report forecasts and tracks PBX, Converged and Key shipments globally, by region, W. Europe country and line size segment.

About The Telecom Intelligence Group

The Telecom Intelligence Group includes market intelligence provider InfoTech; TelecomWeb and TelecomWeb news break; newsletters Wireless Business Forecast, Broadband Business Forecast and Telecom Policy Report; tariff consultancy Tarifica; and the Web-based business-telephony-product database TelecomTactics.
COPYRIGHT 2006 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2006, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Business Wire
Date:Feb 8, 2006
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