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Unified Communications Market Heats Up in 2010

Strategic Insights

— 1 min read

Avaya's acquisition of Nortel Enterprise Solutions has transformed the company into a top competitor in the enterprise telephony, contact center, and voice messaging markets. Avaya's new position has made it a more formidable foe in the sector, but its integration of voice and data components remains a concern. The move has sparked a heated competition among major players, including Cisco Systems, Microsoft, and AT&T, as they prepare for significant enterprise spending in the unified communications market.

Key Takeaways:

  • Avaya's acquisition of Nortel Enterprise Solutions has solidified its position as a top-two competitor in the enterprise telephony, contact center, and voice messaging markets. (Source: Current Analysis)
  • The acquisition has bolstered Avaya's resources to become a more formidable foe and sought-after partner in not only these sectors, but also in adjacent business segments. (Source: Current Analysis)
  • Cisco Systems leads in both the UC solutions and VoIP hardware segments, while Microsoft is No. 2 in UC solutions and AT&T is No. 2 in VoIP hardware. (Source: Infonetics Research)
  • UC revenues were off by just 4 percent in 2009, a "mild" slowdown compared to the overall telephony segment. (Source: Infonetics Research)
  • Despite significant enterprise spending reductions, the unified communication market is holding up remarkably well, with UC tools designed to improve user collaboration. (Source: Infonetics Research)
  • Integration of voice and data components remains a concern for Avaya, allowing competitors to generate integration-related fear, uncertainty, and doubt (FUD). (Source: Current Analysis)
  • Existing or prospective NES customers had concerns about product development and roadmap execution, strategic vision, and uncertainty and doubt attending the acquisition. (Source: Current Analysis)
  • The acquisition has created uncertainty and doubt among existing and prospective customers about Avaya's ability to execute its product roadmap, which can be capitalized on by competitors. (Source: Current Analysis)

Statistics:

  • UC revenues were off by 4 percent in 2009.
  • Cisco leads in both the UC solutions and VoIP hardware segments.
  • Microsoft is No. 2 in UC solutions.
  • AT&T is No. 2 in VoIP hardware.
  • Significant enterprise spending reductions have been reported in various product categories.

Sources:

  • Current Analysis: "Nortel Enterprise Solutions Acquisition Gives Avaya Contention in Enterprise Telephony, Contact Center, and Voice Messaging Markets"
  • Infonetics Research: "Unified Communications: Market Brief"

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