Cisco Systems emerges as leader in Asia Pacific IP-PBX market for second year
New Frost & Sullivan report indicates over 300 percent year-on-year growth for total IP-PBX revenues
SINGAPORE - July 24, 2002 - Cisco Systems, Inc., the worldwide leader in networking for the Internet, has emerged as the leader in the Asia Pacific IP-PBX market for the second year running according to a new report by the international marketing consulting company, Frost & Sullivan. The study revealed that the total IP-PBX market grew by over 300 percent in revenue from 2000 to 2001.
By the year 2008, Frost & Sullivan expects the Asia Pacific IP-PBX market to be worth US$1.67 billion, recording an annual compound growth rate of 65.1 percent. This is in contrast to the traditional PBX market which Frost & Sullivan projects to shrink to US$1.3 billion by 2008, an annual compound decline of minus 2.9 percent. The IP-PBX segment's contribution to the voice equipment market is expected to rise. By 2008, it is expected to account for 55 percent of the total PBX market.
"By managing a single network, companies which adopt IP-PBX systems stand to make savings in operational costs. Additionally, the convergence of data and voice onto a single IP network paves the way for the customer to experience rich IP-based business applications, including unified messaging. By the end of the decade, IP phones will be standard desktop terminal," said Mr. Manoj Menon, Director, Technology Practice, Frost & Sullivan. "Moreover, IP-PBX systems have comparable features to that of the traditional TDM-based PBX systems. The initial negative perception surrounding quality of voice and system reliability of IP Telephony has begun to fundamentally change in 2002."
"Cisco is the undisputed winner in the IP-PBX market with an astonishing 59 percent market share in 2001 - a position it also held in the previous year. In 2001, the company made significant in-roads into the regional market and its aggressive 'first-to-market' strategy is today clearly evident," he added.
With an industry-leading portfolio of packet voice and VoIP products, Cisco offers solutions for both service providers and enterprise businesses. More importantly, Cisco is the only company working to seamlessly tie service provider and enterprise networks together, supporting both voice and data, through the deployment of true end-to-end packet networks.
"The development of Voice over IP and IP Telephony has been driven by the globalization of companies and their need to expand communications with their growth," said Andrew Vlachiotis, Director of New Technologies in Asia Pacific for Cisco Systems.
"When companies were based in a single location it was much easier to conduct in-person meetings or even hallway conversations. But, when you have employees on the other side of the globe, how do you effectively communicate? Voice over IP technology provides a solution to this dilemma. This is further validated by Frost & Sullivan's report, which shows IP Telephony systems outstripping traditional PBX-based systems over the next few years," he added.
Cisco's IP Telephony solutions are built on Cisco AVVID (Architecture for Voice, Video and Integrated Data) and include:
7 The Cisco Media Convergence Server (MCS) 7800 series
7 Cisco Unity, a powerful Unified Communications solution
7 Cisco CallManager, a software-based call-processor
7 The Cisco Integrated Communications System (ICS) 7750, for midmarket businesses and enterprise branch offices
7 The complete range of Cisco IP Phones and Cisco IP Softphones
About Frost & Sullivan
Frost & Sullivan (www.frost.com), the international marketing consulting and training company headquartered in Silicon Valley, has been providing the IT & telecommunications community with insightful, authoritative and timely market information, and consulting services for four decades. Using our Market Engineering methodology, our team of analysts and consultants located throughout the major metropolis of the United States, Europe and Asia, analyze over 200 industries, including the Enterprise Voice Equipment Market in Asia Pacific.
About Cisco Systems
Cisco Systems, Inc. (NASDAQ: CSCO) is the worldwide leader in networking for the Internet. Cisco news and information are available at www.cisco.com.
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