News Release

Cisco Systems Reaches Number One Position in Worldwide Enterprise Voice Market

Synergy Research Ranks Cisco Number One in Total Voice Revenue for Q3 Ahead of All Traditional IP PBX and TDM Vendors
Nov 16, 2005

SAN JOSE, Calif., November 16, 2005 - Cisco Systems today is now the number one supplier in the global enterprise voice market, including both Internet Protocol (IP) and traditional circuit-based systems, based on revenue for the third calendar quarter of 2005, according to a report issued by leading industry research firm, Synergy Research Group.

In their report titled "Q3 2005 Enterprise Voice Market Shares", Synergy Research Group reports that Cisco's IP Communications products outsold the enterprise voice solutions of each of its competitors. Cisco has been a leader in the IP telephony market for many years, but this marks the first time that Cisco has sold more IP-based voice solutions than the combined IP, hybrid and TDM-based PBX solutions of any other vendor.

"These results represent that IP telephony has now truly entered the mainstream," said Jeremy Duke, president and CEO, of the Synergy Research Group. "For Cisco to have entered this market as recently as 1999 and in just six years to climb to the number one voice communications vendor worldwide among a field of very well established competitors worldwide is truly a great feat for the company. Cisco's sustained strong performance reflects customers' growing acceptance of IP-based voice solutions and showcases the cost and productivity advantages of these solutions.

Cisco's leadership is reflected in many concrete ways. Cisco is the clear leader in shipments of IP phones, with over six million sold globally to date. The company has over 30,000 business voice customers worldwide; over 80 of those customers have already deployed more than five thousand IP phones. Cisco is currently replacing nearly 12,000 legacy phones each day, enabling business users to experience communications systems with demonstrated improvements in productivity, flexibility and ease-of-use.

"We are proud to have pulled ahead of our peers for the first time in the enterprise voice market," said Don Proctor, senior vice president at Cisco's Voice Technology Group. "Although this is still just the beginning of a sea change in the industry, the strength of Cisco's solutions, partners and support is being recognized by more customers each day."