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Telecommunications equipment industry

The Future of Telephone Switchboards: Convergence with Data Networking

Strategic Insights

— 1 min read

As the world of communication technology continues to evolve, the traditional telephone switchboard may soon become a relic of the past. With the integration of voice and data networks, the days of dedicated telephone systems may be numbered. Proponents of this new technology, known as LAN telephony, argue that it can provide lower costs, increased efficiency, and new applications that integrate data and voice functions.

Key Takeaways:

  • The industry is moving towards LAN telephony, with projected widespread adoption by 2004, according to In-Stat Group.
  • Key findings of In-Stat's research include the demise of PBX systems, complete handset and extension portability, and integration with contact management software.
  • Lucent Technologies' strategy director, David Spiby, cautions that LAN telephony is not yet a viable option due to concerns over reliability, resilience, and scalability.
  • Manufacturers are responding positively, with networking giants like 3Com and Cisco Systems vying for a foothold in the LAN telephony market.
  • The industry expects a battle between communications and networking giants over LAN telephony, with PBX manufacturers at risk of losing market share.

Statistics:

  • By 2004, LAN telephony is projected to become the dominant enterprise architecture (In-Stat Group).
  • The features, applications, and pricing of LAN telephony will ultimately result in the demise of PBX systems (In-Stat Group).
  • 94% of enterprises will be using voice-over Internet Protocol (VoIP) by 2005 (Gartner Group report).
  • LAN telephony will allow for lower costs of a unified server and cabling infrastructure (David Spiby, Lucent Technologies).

Sources:

  • "The Future of Telephone Switchboards: Convergence with Data Networking" by Andrew Emmerson, The Times, 2000.
  • "Enterprise Voice and LAN Data Convergence: Beyond the Hype", Gartner Group, 2000.
  • "LAN Telephony: The Ultimate Convergence of Voice and Data" by In-Stat Group.
  • Interview with Brian Strachman, industry analyst for In-Stat Group.

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