Avaya and Cisco Systems were the top vendors in a unified communications market that saw strong growth in the third quarter, according to Dell'Oro Group. However, while the UC space is doing well in the second half of 2009 and is expected to continue growing in 2010, it will be a while before it reaches the pre-recession numbers of 2008.
Avaya and Cisco Systems were the top vendors in a growing unified
communications space in the third quarter, according to research company Dell'Oro
In a statement released Dec. 3, Dell'Oro analysts said more than 70 percent
of the vendors in the space contributed to the market's growth in the third
However, even though the UC market is finishing strong, it will be a while
before it gets back to levels seen in 2008, before the global recession hit,
according to Dell'Oro Director Alan Weckel.
"The second half of the year is typically stronger for the enterprise
voice market, and the third quarter of this year was no exception for the
unified communications segment," Weckel said in a statement. "Although
we expect vendors to experience strong fiscal year-end results in the fourth
quarter of 2009 and 2010, we do not expect vendors' fiscal year-ends to be as
strong as they were prior to 2008 for quite some time."
According to Dell'Oro's report, the IP phone space grew 10 percent
sequentially, with all segments-including IP conference, IP desk and IP WLAN
Avaya and Cisco are both looking to build up their UC capabilities. In
September, Avaya won an auction to buy bankrupt Nortel Networks' enterprise
for more than $900 million, beating out Siemens Enterprise
Communications. The move gives Avaya about 25 percent of the enterprise
telephony business, according to analysts, outdistancing second-place Cisco,
which owns about a 16 percent share.
For its part, Cisco is looking to build up its video conferencing
capabilities by buying
for $3.4 billion. Cisco officials were to decide Dec. 3 whether
they have the 90 percent of Tandberg shares they wanted to go ahead with the
deal. If not, they will either walk away from it or waive the 90 percent