Response: IP PBX sales decline 10% | Dell’Oro

The IP PBX business is shrinking as mobile phones replace desk phones. More importantly, voice calls are replaced with chat applications like Skype, FaceTime, SnapChat. Modern companies are using messaging platforms like Slack to replace time wasting telephone calls – we run the Packet Pushers business zero telephone calls.

I’ve been predicting this for a year or more. I doubt anyone is surprised.

During the first quarter of 2014, total Enterprise Telephony revenues declined 10% sequentially.  The market is continuing to shrink due in large part to the secular decline in premise-based equipment.

Pushing cloud offering just reduces costs in a declining business.

via Vendors Push Cloud Offerings to Offset PBX Declines | Dell’Oro.

  • http://EddieForero.me/ Eddie Forero

    100% agree. I saw the writing in the wall years ago and finally decided to put the PBX world behind me after Avaya ate Nortel. Moved to WLAN and watched as the PBX market started imploding.

    Voice will still be around, but PBXs are becoming non-essential and just plain unnecessary. You know it’s crazy when it 5x more complicated to configure an enterprise PBX than an enterprise LAN/WLAN.

  • Chris Tolmie

    Yes, this is a trend. Who is sales or field service needs a desk phone and a mobile. But, there are still roles where a desk phone (or a softphone) makes sense such as nurse stations, receptionists, some admin roles and many civil servants. Of course they may be able to work from anywhere and have one number. Maybe a mix of Mobile UC and Fixed/Mobile convergence is the model for certain organisations.

    • http://etherealmind.com Etherealmind

      I’m not predicting that fixed phones are going away but the trend is that it will become a niche market in the future.