Enterprise Telephony Market Set to Shrink

According to the Dell'Oro Group, the enterprise telephony market is expected to decline to $8 billion in 2019. The research house expects cloud-based business voice solutions to erode the premises-based solutions market.

"Enterprises continue to transition IT dollars away from premise solutions and towards the cloud, and we remain surprised that only a few premises-based vendors have significant revenue from cloud offerings, with the remaining premises vendors being slow to create such offerings," wrote Alan Weckel, vice president of enterprise telephony market research at Dell'Oro Group. "This is very similar to the early days of IP [http://www.broadbandtechreport.com/in-the-network/ipv6.html], where the market direction was clear but vendors were unwilling to change. During the next five years, we expect vendors to focus heavily on the cloud market and to look at both selling equipment to support cloud build-outs and towards creating stand-alone cloud offerings."