SIP Based IP PBX Market Shares, Market Strategies, and Market Forecasts, 2017 to 2023 Abstract: SIP IP PBX Hardware is Replaced By Cloud Software . Smart SIP Based IP PBX systms have come full circle from the times when enterprise hardware was less expensive than AT&T supplying each phone on the desk of every business. Now the cloud computing is ubiquitious and less expensive than enterprise server technology. IP PBX is far less expensive than owning your own servers and has been for a long time. SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts WinterGreen Research, Inc. Lexington, Massachusetts www.wintergreenresearch.com (781) 863-5078 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 1 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Table of Contents SIP BASED IP PBX EXECUTIVE SUMMARY 14 SIP Based IP PBX Market Driving Forces 14 A Digital Transformation, An Approach That Enables Organizations To Drive Changes In Their Business Models And Ecosystems 15 SIP PBX Market Shares 17 SIP PBX Forecast 19 1. SIP BASED IP PBX: MARKET DESCRIPTION AND MARKET DYNAMICS 21 1.1 21 Software Based IP PBX 1.1.1 Session Initiation Protocol (SIP) Trunking 22 1.1.2 SIP Trunking Works: Over an Existing IP Network 23 1.1.3 SIP Trunking Alternative Solutions: 25 1.2 SIP-PBX Deployment 32 1.2.1 Telephone First Point Of Contact 33 1.2.2 SIP Application Server 34 1.3 Convergence of Voice and Data 37 1.4 Enterprise PBX 38 1.5 Session Initiation Protocol (SIP) Standard 39 1.5.1 SIP Advantages and Applications COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 40 2 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 1.5.2 SIP Part of IP Suite 40 1.5.3 Session Initiation Protocol 41 1.5.4 SIP Mobility and Presence Support 41 1.6 SIP Application Server 42 1.6.1 Session Initiation Protocol (SIP) Trunking 43 1.6.2 SIP Trunking: 43 1.6.3 Advantages of SIP Trunking Services: 44 2. SIP BASED IP PBX MARKET SHARES AND MARKET FORECASTS 45 2.1 45 SIP Based IP PBX Market Driving Forces 2.1.1 A Digital Transformation, An Approach That Enables Organizations To Drive Changes In Their Business Models And Ecosystems 2.2 46 SIP PBX Market Shares 48 2.2.1 8x8 53 2.2.2 Microsoft 53 2.2.3 NEC 53 2.2.4 NEC 54 2.2.5 SIP Cloud Delivery Architectures Market Share 57 2.2.6 Mitel 58 2.2.7 Cisco Tops PBX Market, Microsoft Leads In UC 59 2.2.8 Cloud PBX Market Shares 60 2.2.9 RingCentral 60 2.2.10 West Corporation 61 2.2.11 Huawei 62 2.2.12 Broadsoft 63 2.3 SIP PBX Forecast 2.3.1 63 Digital Private Branch Exchange (PBX) At the End of Its Life Cycle COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 65 3 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.3.2 SIP Based IP PBX Cloud and Unified Communications 68 2.3.3 SIP Enabled IP PBX SMB Market Shares Dollars, Worldwide, 2016 70 2.3.4 SIP Enabled IP PBX Enterprise Market Shares Dollars, Worldwide, 2016 71 2.3.5 SIP Enabled IP PBX Cloud SMB Market Shares Dollars, Worldwide, 2016 72 2.3.6 SIP Enabled IP PBX Cloud Enterprise / Service Provider Market Shares Dollars, Worldwide, 2016 73 2.3.7 SIP Enabled IP PBX Unified Communications Market Shares Dollars, Worldwide, 2016 74 2.4 SIP Based IP PBX Pricing 75 2.5 SIP Based IP PBX Regional Analysis 77 3. SIP BASED IP PBX PRODUCT DESCRIPTION 79 3.1 79 Avaya 3.1.1 Avaya Networking 79 3.1.2 Avaya Cloud Options 80 3.1.3 Avaya Communication Server 1000 81 3.1.4 Avaya Professional-Grade Business Communications 82 3.2 BT / Avaya IP PBX Cloud 83 3.3 Equinix / Avaya Cloud SIP Communications 83 3.4 Cisco 84 3.4.1 Cisco Existing Collaboration 84 3.4.2 Apple and Cisco Working Together on IP Communication 86 3.5 AT&T 87 3.5.1 Cisco Hosted Collaboration Solution from AT&T 88 3.5.1 Cisco Hosted Collaboration Solution from AT&T Hybrid and Existing Voice Services 89 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 4 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.6 NEC 94 3.6.1 NEC IP-PBX 94 3.6.2 NEC IP-PBX 96 3.6.3 NEC Univerge SV9500 97 3.7 Mitel 97 3.7.1 Mitel Phone System Offers Flexibility 98 3.7.2 Mitel VoIP 99 3.7.3 Mitel Cloud Solution 101 3.7.4 Mitel Hybrid Solution 101 3.7.5 Mitel Presence 103 3.8 Microsoft SfBS Premises-Based Version of Skype 104 3.9 RingCentral Phone System In The Cloud 105 3.10 8x8 Global Cloud Communications 106 3.10.1 3.11 8x8 Virtual Office Pre-Built CRM Integrations with Salesforce, NetSuite, and Zendesk Ericsson Multimedia Telephony Application Server 3.11.1 Ericsson Consumer and Enterprise Communication Services Offering 107 108 109 4. SIP BASED IP PBX RESEARCH AND TECHNOLOGY 112 4.1 112 NFV 4.1.1 4.2 NFV – Network Functions Virtualization - Cisco Scale: Cloud 2.0 Mega Data Center Containers 4.2.1 113 113 Data Center Architectures Evolving 114 5. SIP BASED IP PBX COMPANY PROFILES 115 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 5 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.1 8x8 115 5.2 AT&T 116 5.3 Avaya 116 5.3.1 Avaya Team Engagement Solutions 117 5.3.2 Avaya Customer Engagement Solutions 118 5.3.3 Avaya Fabric Networking 121 5.3.4 Avaya Services 121 5.3.5 Avaya Files for Chapter 11 Bankruptcy 122 5.3.6 Avaya Revenue 124 5.4 Brekeke Software 128 5.5 Broadsoft 129 5.6 BT / Avaya IP PBX Cloud 130 5.7 Ciena / BluePlanet 130 5.7.1 Ciena Opensource And Standards Affiliations 131 5.7.2 Ciena Open Network Operating System (Onos) 131 5.7.3 Ciena Metro Ethernet Forum 132 5.7.4 Ciena Open Compute Project 132 5.7.5 Ciena OpenDaylight 133 5.7.6 Ciena Open Networking Foundation 133 5.7.7 Ciena Internet Engineering Task Force 133 5.7.8 Ciena European Telecommunications Standards Institute 134 5.7.9 Centurylink And Blue Planet: Orchestration Of NFV-Based Services With NG-OSS 136 5.7.10 Telefónica, Blue Planet, Brocade, Intel, And Red Hat: Orchestrating Vrouter Vnf With Deterministic Performance 5.7.11 5.7.12 137 Centurylink, Blue Planet 139 Ciena Blue Planet SDN and NFV Orchestration Platforms For Network Operators COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 139 6 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.7.13 Ciena Blue Planet Container-Based Micro-Services Architecture 140 5.7.14 Ciena Blue Planet Container Based Architecture 141 5.8 Cisco Systems 143 5.8.1 Cisco Business 143 5.8.2 Cisco Strategy and Focus Areas 144 5.8.3 Cisco Leverages Market Transitions 146 5.8.4 Cisco Addresses Digital Transformation 147 5.8.5 Cisco Software-Defined Networking 149 5.8.6 Cisco Cloud Strategy 150 5.8.7 Cisco Switching 150 5.8.8 Cisco Spark 153 5.8.9 Cisco Data Center 153 5.8.10 Cisco UCS Mini Edge Of The Network Soolution 155 5.8.11 Cisco Competition 156 5.8.12 Cisco Revenue 158 5.9 5.10 Equinix / Avaya Cloud SIP Communications 160 Ericsson 5.10.1 161 Ericsson Revenue 161 5.11 Fonality 162 5.12 Huawei 164 5.12.1 Huawei 2016 Business 164 5.12.2 Huawei Smart Devices 165 5.12.3 Huawei Regional Strengths 166 5.12.4 Huawei Building Cloud Ecosystem 167 5.12.5 Huawei Adopting a Product + Service Strategy 168 5.12.6 Huawei Vision & Mission 169 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 7 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.12.7 Huawei Strategy 169 5.12.8 Huawei Financial Highlights 170 5.12.9 Huawei Corporate Governance 170 5.12.10 Huawei Research & Development 170 5.12.11 Huawei Cyber Security 170 5.12.12 Huawei Milestones 170 5.12.13 Huawei Annual Report 171 5.12.14 Huawei Partners with China Telecom, Shenzhen Gas On Smart Utility 171 5.13 Microsoft 172 5.13.1 Microsoft / Mojang AB Minecraft 172 5.13.2 Microsoft Reportable Segments 172 5.13.3 Microsoft Revenue by Segment 175 5.13.4 Skype and Microsoft 177 5.13.5 Microsoft / Skype / GroupMe Free Group Messaging 178 5.13.6 Microsoft SOA 179 5.13.7 Microsoft .Net Open Source 181 5.14 Mitel 181 5.14.1 Mitel Business Communication Experts 182 5.14.2 Mitel Empowering Partners 182 5.14.3 Mitel Signs Definitive Agreement to Divest Mobile Business 183 5.14.4 Mitel Reports September Quarter Results 184 5.14.5 Mitel Cloud and Revenue 185 5.14.6 Mitel Enhances Reliability of Cloud-Based Business Communications and Collaboration Services 186 5.14.7 Mitel Reduced IT Maintenance 187 5.14.8 Mitel Cloud Technology 190 5.14.9 Mitel’s Approach To Developing 5G Technologies 190 5.15 NEC COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 191 8 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.15.1 NEC Communication Platforms 192 5.15.2 NEC Software-Based Communication Platforms 192 5.15.3 NEC Software and Hardware Based: UNIVERGE® SV9000 193 5.15.4 NEC Small to Medium-Sized Businesses Communication Platforms 194 5.15.5 NEC Large Enterprise Communication Platforms 194 5.16 NetSapiens 195 5.17 RingCentral Next-Gen Competitor 195 5.18 Shoretel 196 5.19 Vonage 197 5.20 West Corporation 198 5.20.1 West Services 199 5.20.2 West Corporation Revenue 200 5.21 ZyXEL 201 5.22 List of Companies 216 WINTERGREEN RESEARCH, 223 WinterGreen Research Research Methodology 224 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 9 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 1. Dollars, 2016 SIP Enabled IP PBX Server, Cloud, and Unified Communications Market Shares Revenue, 18 Figure 2. SIP Enabled IP PBX Market Forecasts Dollars, Worldwide, 2016 20 Figure 3. SIP Application Server Business Benefits 26 Figure 4. SIP Server-Based Applications 28 Figure 5. SIP Server-Based Benefits 29 Figure 6. SIP Enabled IP PBX Server, Cloud, and Unified Communications Market Shares Revenue, Dollars, 2016 Figure 7. Dollars, 2016 49 SIP Enabled IP PBX Server, Cloud, and Unified Communications Market Shares Revenue, 50 Figure 8. Selected Enterprise Communications Systems Participants Figure 9. SIP Enabled IP PBX Market Shares, Segments SIP PBX SMB, SIP PBX Enterprise, SIP PBX Cloud SMB, SIP Cloud Enterprise / Service Provider, SIP Unified Communications, Dollars, Worldwide, 2016 51 52 Figure 10. NEC Univerge SIP IP PBX 54 Figure 11. NEC UNIVERGE SV9100 Features: 55 Figure 12. NEC UNIVERGE SV9100 Functions: 56 Figure 13. SIP Enabled IP PBX Market Forecasts Dollars, Worldwide, 2016 64 Figure 14. SIP Enabled IP PBX Market Forecasts Dollars, Worldwide, 2016 65 Figure 15. SIP Enabled IP PBX SMB Market Shares Dollars, Worldwide, 2016 70 Figure 16. SIP Enabled IP PBX Enterprise Market Shares Dollars, Worldwide, 2016 71 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 10 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 17. SIP Enabled IP PBX Cloud SMB Market Shares Dollars, Worldwide, 2016 Figure 18. SIP Enabled IP PBX Cloud Enterprise / Service Provider Market Shares Dollars, Worldwide, 2016 72 73 Figure 19. SIP Enabled IP PBX Unified Communications Market Shares Dollars, Worldwide, 2016 74 Figure 20. Avaya Networking Technology Driving Digital Transformation 80 Figure 21. Avaya Cloud Options 80 Figure 22. Avaya Communication Server 1000 Functions 82 Figure 23. Avaya Cloud Options 83 Figure 24. Avaya Cloud Options 83 Figure 25. Cisco Spark Plus App Features 85 Figure 26. Cisco Spark Board: A 3-in-1 Team Collaboration Device for Meeting Rooms 86 Figure 27. Cisco Hosted Collaboration Solution from AT&T Features 89 Figure 28. Cisco Hosted Collaboration Solution from AT&T Functions 90 Figure 29. Cisco Hosted Collaboration Solution from AT&T Functions 92 Figure 30. AT&T Cisco Unified SIP Collaboration System Features 93 Figure 31. NEC IP-PBX 94 Figure 32. NEC UNIVERGE SV9100 Features: 95 Figure 33. NEC SL1000 IP PBX 96 Figure 34. Microsoft Partners Affected by Pivot from SfBS (On-Premises) to SfBO COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 105 11 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 35. 8x8 Virtual Office Functions 106 Figure 36. Ericsson Multimedia Telephony Application Server Main Values 110 Figure 37. 8x8 Cloud-Based Phone Systems and Contact Center Functions: 115 Figure 38. 8x8 Customers 116 Figure 39. Avaya SIP PBX Solution Deployment Models 117 Figure 40. Avaya Transaction Solutions Functions 119 Figure 41. Avaya Telecommunications Leadership Position Metrics 120 Figure 42. Avaya Applications on Platform 123 Figure 43. Avaya Target Markets Businesses by Size 127 Figure 44. Figure 22. Avaya Target Markets Businesses by Industry 127 Figure 45. Avaya Cloud Options 130 Figure 46. Ciena OSS from BluePlanet 135 Figure 47. Benefits of Blue Planet's Container-Based Micro-Service Architecture 141 Figure 48. Ciena Blue Planet Component Micro Services: SDN, NFV, and Multi Domain 142 Figure 49. Cisco Technology Foundation For Digital Transformation 148 Figure 50. Cisco Unified Computing System Portfolio Of Solutions Functions 154 Figure 51. Avaya Cloud Options 160 Figure 52. Fonality Flexibility of Hosted 162 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 12 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 53. Fonality Benefits of Premise 163 Figure 54. Microsoft Intelligent Cloud Segment 174 Figure 55. Microsoft / Skype / GroupMe Free Group Messaging 178 Figure 56. Microsoft Service Orientated Architecture SOA Functions 179 Figure 57. NEC Global Sales by Segment 191 Figure 58. ShoreTel Target Markets 196 Figure 59. West Corporation Revenue by Segment 200 Figure 60. ZyXEL SIP IP PBX Functions 201 Figure 61. ZyXEL Enterprise-Grade SIP IP PBX System for Small and Medium Businesses Specifications, System Specifications, Standard Protocols 203 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 13 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SIP Based IP PBX Market Driving Forces SIP based IP PBX supporting FXO, FXS, ISDN-BRI, T1, E1 and SIP trunks. SIP supports the versatile trunking expansions, including FXO, FXS, ISDN, T1 and E1. The users can fit into all sort of telephony environment. Standard SIP trunks and trusted peers make devices seamlessly integrated with ITSP services. Following illustrates that some companies are more fully integrated with SIP application servers than others. • ISDN PRI (T1/E1): - Alcatel-Lucent, Avaya, Siemens, and Nortel PBXs • SIP Trunk: - Nokia Siemens, Nortel, Broadsoft, and Huawei Soft Switches Information technology (IT) has moved from the back office to the front office with platform technologies, mobile, social business, cloud, and analytics monitoring. The shift occurring is for digital technology to embed itself into every aspect of business endeavor and personal lives. This is an era where the distinction between the technologies and processes that businesses deploy is tightly linked. Digital technology directly impacts customers and markets. The boundary between internal operations of the enterprise and its external ecosystem is rapidly disappearing. Customers, markets, competitors, partners, and regulators are inextricably linked. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 14 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Business leaders are challenged to move their enterprises to the next level of competition. An effective digital business player, transformer, and disruptor position depends on the effectiveness of employing digital technologies. Organizational, operational, and business model innovation are needed to create ways of operating and growing the business. It is a journey. Many companies are using digital technology to create market disruption. Amazon, Uber, Airbnb represent companies using effective disruptive strategic positioning. As entire industries shift to the digital world, once buoyant companies are threatened with disappearing. SIP is a significant aspect of telecommunications applications server disruptive technology, it is enough to look at Avaya and the bankruptcy to see there is a shift to cloud SIP solutions. A Digital Transformation, An Approach That Enables Organizations To Drive Changes In Their Business Models And Ecosystems Disruption in the business communications markets represents major opportunity for vendors with cloud offerings. This is part of a larger digital transformation, a digital approach to interconnecting everything that enables organizations to drive changes in their business models and ecosystems. By leveraging digital competencies, businesses can grow faster than they would otherwise. A digital strategy, in conjunction with the appropriate unified communications solution permits the implementation of innovative communications services. Digital connectivity with combined voice, video and file transfer can help organizations and their end users innovate and compete more effectively. It is imperative that organizations have a digital communications strategy in place. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 15 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Communications and collaboration solutions are migrating to the cloud in every segment of small, medium and large business. In vertical markets, businesses are managing competition that is characterized by disruption. Traditional verticals exploit digital technologies. Initiatives provide innovation in the marketplaces. Communications initiatives are being used to leverage information from the Internet of Things (IoT) and video. New functionality is being built out in the healthcare sector. Communication goes beyond voice. Most people under 30 prefer to communicate via text. SIP IP communications can provide an increase in the quantity and quality of home and personal medical devices for monitoring patient health care. Care delivery is being improved by having monitors linked into a full communications system. By integrating the data from monitoring devices with a real-time communications system, medical professionals can do their jobs better. Making the workforce more engaged and productive by providing users with new tools and solutions that are highly relevant to how they work in the DX era, while delivering enterprise-class voice and video capabilities. Increased productivity is achieved. Users can remotely share and explain real-time data in context. Compelling benefits that organizations can realize from UC&C solutions designed for the digital transformation era: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 16 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SIP PBX Market Shares The SIP trunk: is supported by Nokia Siemens, Nortel, Broadsoft, and Huawei soft switches. Hosted PBX Systems implement unified communications servers. Avaya 1000 is sized for growth. This scalable and centrally managed solution supports up to 150,000 IP users, 40,000 IP clients, or 20,000 SIP clients per call server. Avaya has struggled to keep up with unified communications competitors, Cisco and Microsoft, as services become more cloud-oriented. The Avaya bankruptcy filing and restructuring gives the vendor a chance to create true cloud services. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 17 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 1. SIP Enabled IP PBX Server, Cloud, and Unified Communications Market Shares Revenue, Dollars, 2016 SIP Enabled IP PBX Server, Cloud, and Unified Communications Market Shares Revenue, Dollars, 2016 NEC 15% Microsoft 15% Total $14.2 Billion 2016 Other 15% Huawei 13% ShoreTel 2% Broadsoft 4% West Unified Communications 10% Cisco 6% Avaya 7% Vonage 7% Mitel 8% Source: WinterGreen Research, Inc . COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 18 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SIP PBX Forecast SIP enabled PBX and IP PBX market forecasts indicate a bifurcation in the market between hardware servers and cloud enabled services, either for soft switches and or Unified Communications (UC). The SIP based voice equipment and services market PBX phone systems, voice over IP gateways, UC applications and IP phones markets at $14.15 billion in 2016 are anticipated to grow strongly in the cloud computing segment to reach $59 billion by 2023. Strong growth is anticipated as mega data centers and hyper data centers create networks inside the data centers that force economies of scale and move users beyond server solutions to cloud solutions. The SIP IP technology is a softwre solution that can reside anywhere, on a PBX hardware server or inside a cloud as a software solution. Other combinations of hardware and software are done. What matters is that the broad feature function package known as a PBX gets implemented and made available to users. The SIP trunking is more efficient for users, creating clearer, more consistent voice communications. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 19 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 2. SIP Enabled IP PBX Market Forecasts Dollars, Worldwide, 2016 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 20 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 1.1 Software Based IP PBX The software based SIP based IP PBX integrated infrastructure provides opportunities for achieving significant acceleration of business processes and employee productivity. As communications functionality becomes integrated into daily worker productivity and core process business applications. The need to effectively support business communication application software takes on additional mission critical importance. Productivity and core process business applications effectively support business communication. Application software takes on additional mission critical importance in this context. The shift to a software centric communications model creates new requirements for operations and support. Conventional phone service can quickly become a costly venture, particularly if you are endeavoring to use such services to satisfy the unique communications demands of the small-to-midsized business market. Luckily, such businesses now have the options when it comes to voice communications and are no longer subject to the burdens of standard phone service. SIP IP PBX is being implemented as software driven sets of communications functionality. Instead of investing large sums of money on outdated servers, businesses opt for more reliable and cost efficient Voice over IP (VoIP) communications platforms based on efficient cloud computing. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 21 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts These types of digital calling systems leverage high-speed Internet to transmit high quality voice calls. Users have a wide range of rich, business enhancing features. Multiple VoIP PBX providers use robust software feature function packages located in the cloud to achieve PBX functionality. This extends the definition of a PBX beyond a server to label it SIP VoIP. The server has become a virtual machine. A phone system with hosted SIP PBX is referred to in the industry as an advanced virtual PBX that starts with 40 features and can be expanded to thousands of features. · 1.1.1 Session Initiation Protocol (SIP) Trunking Session initiation protocol (SIP) trunking is the virtual equivalent of a traditional business phone line. A SIP trunk is a virtual connection to the public switched telephone network (PSTN), utilizing an internet connection. SIP is one of the specific protocols that enable VoIP services to work. A SIP trunk replaces the physical connections with virtual connections over existing IP networks. Information is transmitted through the internet and not landline telephone lines. SIP integrates voice, video data and internet services into one single line. VoIP PBX, voice communications were no longer restricted to traditional circuits and landline phones. Instead through SIP, a signaling language designed to carry data like voice, video and instant messaging, utilize the internet to highly cut down on the cost and rigidity of older phone systems. All SIP calls are local calls and you do not need a phone line. SIP services are offered by most business VoIP providers for both small and large application. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 22 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SIP services offer a cost effective way for small businesses to maintain the professional presence. 1.1.2 SIP Trunking Works: Over an Existing IP Network SIP trunking delivers telephone and unified communications services over an existing IP network. SIP trunking replaces traditional telephone lines. Through a SIP trunk, VoIP users can make calls directly to any phone on the PSTN without telephone lines by connecting to a compatible hosted PBX system. Three elements to operate a SIP trunk are the SIP provider that supplies the services, a phone system that has a trunk side to enable SIP, and a border element to facilitate the connection between the enterprise network and the PSTN or an external IP carrier network. These border elements can be a firewall or switch, and are usually managed by SIP trunking provider. These elements any business can vastly boost its telecommunications reach. A pre-existing IP-PBX installed make the process even easier. Advantages of SIP trunking services: to SIP, small businesses can easily appear large and professional with a level of service often reserved for more expensive solutions or Fortune 100 companies. This makes it easier for a large business to maintain their local presence, as all SIP calls are local calls – customers do not have to dial a generic call center number. The benefits of SIP include inherent flexibility. SIP inherent flexibility allows users to add or even subtract as many phone lines as they need. The hassle of overpaying for unused lines, or waiting. Everything can be handled through dedicated web portals to tailor the phone system to needs on the fly. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 23 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Analog trunks can be disrupted by bad weather. Expensive phone companies, SIP trunking can help mitigate disaster scenarios by properly rerouting, and prioritizing calls to different networks or phones. Consolidated hardware and setups reduce the installation and maintenance costs of adding or changing existing phone system. The system can grow without adding hardware, a new trunk for extra phone lines doesn’t require any new devices. Take phone number anywhere you travel. Move offices, as number bound by location. If primary link to the SIP provider fails or any internet connection can serve as a temporary link to the SIP network. Business does a lot of calling oversees, SIP can offer free international calls based on provider and pricing plans. Compare industry leading SIP providers. SIP trunking can improve business communication. SIP trunking connections are more limited than IP networks. Phone lines are required for the purchase of a trunk that included at minimum, 24 additional lines. There is no o need to purchase an entire trunk. This is a lot more money and includes 23 useless lines. SIP trunking strongest advantage is scalability. SIP trunking combines video, data and voice all into one single line, Local, long distance, broadband internet service, and video calls are all handled through one network. With dynamic bandwidth allocation, users can ensure the necessary resources are available. Basic web use maintaining a consistent call volume and quality. Every service on the same network, the necessary hardware needed in house drops dramatically. In house IT managers stay on top of phone lines, with Sip technology nothing is on-site. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 24 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The provider sets up a SIP proxy server to provision incoming, outgoing, and PBX calls and they even take care of all technical support to cut down on costs and headaches. Service outages are a thing of the past with SIP trunking. If one location shuts down temporarily, SIP trunks will automatically reroute calls to any other locations and extensions to at least partially restore services. If there is an unexpected power outage, calls can be rerouted to a separate satellite office. Companies with an international presence, or even considering outsourcing, can take advantage of this benefit. The flexibility of SIP trunking allows spread staff across the country or even the world. SIP trunking helps businesses. 1.1.3 SIP Trunking Alternative Solutions: Sending data over one single connection does not take much to start saving money with a SIP trunk. SIP trunks are 25% cheaper than PRI trunks. Beyond a level of flexibility that just not available in traditional phone services, SIP allows making free voice calls between any office on the same VoIP system. With a large list of providers and hardware, pricing and installation costs are much lower, and rates for calls are lower. Another option, Primary Rate Interface (PRI) trunking allows for large businesses to transmit a large number of voice and data communications from multiple locations, This is an older, outdated alternative to SIP. As it relies on the use of T1 lines, telephone circuits might need to be added and calling fees are generally more expensive. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 25 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SIP services ensure staying connected and automatic rerouting calls. An internet-based replacement for traditional phone service, SIP is a central part of how VoIP works. It allows for a more robust, and flexible unified communications system. Figure 3. SIP Application Server Business Benefits • Enables service providers and enterprises to develop and deploy next-generation converged communication services fast and easily. • Provides a commercial-grade platform suited for deployments requiring massive scalability, high availability, service continuity, and high performance. • Single, open platform for hosting multiple applications and services • Performance, reliability & scalability • Optimization for real-time communication Source: WinterGreen Research, Inc. The SIP application server provides a wide ranging and flexible development environment for real-time SIP-based IP communications applications. Developers can choose to develop with: • Native JSR116 SIP Servlets • Event lets that allow external J2EE and .NET applications to invoke SIP applications through SOAP and RMI interfaces COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 26 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • SOA and Web Services development tools and techniques using a new SIP SOA developer kit, re-usable SIP service components, and a runtime application framework The SIP application server is a core component in leading network equipment vendors’ IMS solutions. It fulfills the role of application server for delivering advanced application control logic, and is connected to the IMS infrastructure through standard 3GPP IMS interfaces. The SIP application server is also proven interoperable with leading J2EE application servers, IP media servers, and additional network infrastructure equipment, guaranteeing seamless deployment into Tier 1 carrier networks. For enterprises, the SIP application server is interoperable with Avaya communication manager and SIP enablement services, allowing communication manager to be extended to support advanced SIP applications resident on the SIP Application Server. Some of the enterprise and service provider SIP Application Server-based applications currently developed and deployed include: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 27 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 4. SIP Server-Based Applications • Emergency notification to PSTN and mobile handsets • IP conferencing • Mobile conferencing • Consumer VoIP and IM • 3G mobile multi-party video sharing • IP Toll Free• / IP IVR • Ringback tones • Prepaid IM to PSTN calling • Remote TV/PVR manager • I'm Lost location-based service • Mobile handset-based remote video surveillance and security • Push ringtones • IPTV CallerID Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 28 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 5. SIP Server-Based Benefits • Enables service providers and enterprises to develop and deploy nextgeneration converged communication services fast and easily. • Provides a commercial-grade platform suited for deployments requiring massive scalability, high availability, service continuity, and high performance. Source: WinterGreen Research, Inc. UDE is a laptop or PC version of the SIP Application Server that is designed for developers and is self-contained to make it easier for the developer to deploy, debug, and test applications. UDS is a set of tools that simplify production, debugging and deployment of advanced real-time communication applications. UDS tools help produce, integrate, test and deploy code faster. They reduce the time it takes to introduce new solutions that improve communications and productivity. The UDS is based on the Eclipse IDE framework and enables developers to rapidly create, debug, and tune SIP applications that can be instantly deployed and executed on UDE and the SIP Application Server. UDS takes advantage of the plug-in framework of Eclipse to make it easier to create, integrate and utilize software tools, saving time and money. UDS combines the best of Eclipse built-in and real-time application development plug-ins. A vast number of third-party plug-ins are also available. The Eclipse platform and plug-ins are written in the Java language and come with extensive plug-in construction toolkits and examples. Key aspects of the UDS include: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 29 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SOA and a web services development and runtime environment support the rapid creation and deployment of SIP applications using familiar and well understood SOA and web services programming models. SIP SOA enables the seamless integration of SIP Application Server with Web Services-based SDP infrastructures and enterprise SOA environments at the application layer. SIP SOA abstracts the complexities of the SIP protocol by exposing reusable Service Components as standards-based web services to external applications, enabling developers that are not necessarily SIP experts to quickly incorporate SIPbased real-time session control into their applications. Service Components are pre-built software building blocks providing specific elements of functionality that can be composed into logical applications. Service Components are organized into a 3-Tier hierarchy with each tier delivering a specific class of functionality. Service Orchestration is a capability of SIP SOA that enables more rapid service creation. Service Orchestration lets developers use a simple scripting language, called BPEL (Business Process Execution Language), to orchestrate the interaction between Service Components. This allows composite applications to be quickly built by combining and orchestrating different SLBs (Service Level Blocks) into an overall application or service. SIP SOA products include: • SIP SOA SDK (SIP SOA Framework and Service Components) • Open Web Services SDK • Inova IT SIP Objects.NET COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 30 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The SIP Application Server Runtime Platform provides a full runtime environment for deploying applications to end users, whether service provider customers or enterprise employees. This environment includes the components to deploy and manage the runtime environment including: • Service Hosts (Active, Hot Standby, and Pool) • Service Director • Management Server The SIP Application Server is a core component in leading network equipment vendors' IMS solutions, fulfilling the role of Application Server for delivering advanced application control logic, and is connected to the IMS infrastructure through standard 3GPP IMS interfaces. The SIP Application Server is proven interoperable with leading J2EE application servers, IP media servers, and additional network infrastructure equipment, guaranteeing seamless deployment into Tier 1 carrier networks. For enterprise customers, this means that the SIP Application Server supports next-generation standards-based architectures, which meets the need for open, interoperable network environments. It also means that enterprises' developers are already familiar with working within this structure. The SIP Application Server is an open programmable application server platform that can be used to develop and deploy (host) multiple applications that share common network resources. Once the first application is deployed, adding others becomes simpler and more efficient because they can utilize existing components like media servers and web servers. The SIP Application Server offers a distributed, load-balanced, clustered architecture with no single-point of failure, ensuring the continuous operation of hosted COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 31 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts services. SIP session state is replicated across active (primary) Service Hosts and backup (hot standby) Service Hosts in an HA Channel configuration, with each cluster supporting multiple Channels. SIP Application Server provides a comprehensive logging service that enables service providers to quickly collect usage, fault, and performance data. Carriers also can extract accounting information and export the data to external billing systems to expedite customer invoices. Businesses can choose their preferred container for business-level application logic, whether a J2EE platform with HTTP and EJB containers, or a Microsoft .NET platform. The SIP Application Server also interoperates with Microsoft's Connected Services Framework. 1.2 SIP-PBX Deployment The Session Initiation Protocol SIP-PBX uses advanced protocols to enable a framework for advanced enterprise-wide productivity. Systems provide flexible configuration, enhancing customer interaction with applications. Voice communications capabilities are extended by presence features. The SIP-PBX can be deployed in a variety of customer scenarios. The telephony networks of most major enterprises use a host of vendor equipment that has delivered digital voice services. These companies need to leverage the existing investment in their capital equipment. Voice mail, call center, and automated call distribution offerings involve adjunct servers, attached to the PBX fabric through proprietary line side ports or data interfaces. These applications do interoperate through standards. The vast majority of PBXs are network islands connected via traffic-bearing circuits. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 32 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The SIP-PBX can work with legacy PBX implementations to bring these islands together, participate fully in forklift upgrades of already depreciated telephony infrastructure, and act as an overlay application to unify control of the VoIP network backbone. The SIP-PBX enables centralized voice mail services to be extended based on the availability of inexpensive storage, backup, and regulatory compliance. Corporatewide directories are able to strengthen customer service and global follow-me services. Systems are implemented for more productive employees. Many other applications drive successful penetration of this technology. Using IP technology and applications based on session initiation protocol (SIP), companies can connect to employees located in remote branches or home offices and provide expanded services and expertise to existing operations. However, to be successful, companies need to build processes and policies that support their virtual workforce in a secure environment and ensure that remote workers are well-trained and support the company's culture. With IP contact centers, companies now have a new way to improve services through the virtualization of their contact centers, while also reducing operational expenses 1.2.1 Telephone First Point Of Contact The telephone is the first point of contact customers have with a business. A good phone system can improve customer service, save time and money, reduce staff turnover and frustration and grow the business. Telephone systems need to be easy to operate and manage, give a good first impression, strengthen employee productivity, and lead to ongoing efficiencies in time and hard dollars. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 33 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Voice and data traffic does not yet run on a unified network. The unified network is coming because of the cost savings involved. Combining the numerous pieces of voice and data communications equipment into a single, fully integrated communications platform can mean faster response times and a lower total cost of ownership. Businesses of all sizes want to be able to take advantage of changing technology without losing their current investment in an existing communications system. An open architecture that allows for upgrading of both hardware and software. This enables system to grow with a business. 1.2.2 SIP Application Server SIP application servers are enabling intelligent communications applications. The development of IP communications is linked to the Internet broadband networking revolution. Its main characteristic is the positioning of a less expensive communications system that is more fully featured than existing systems. Equally reliable and available means of voice communications over a converged IP Network is possible. The second phase of IP Telephony has been characterized by its essential economic replacement dominance. By moving to standards based platforms and taking advantage of new less expensive network services, IP Telephony is becoming the obvious choice in the natural replacement cycle for telephony systems. The third phase is starting to shift focus from tactical cost reductions to enhanced functionality that can begin to deliver strategic value to enterprises poised to take advantages of the underlying technology. At the heart of the strategic value proposition is the promise that communications capabilities, when closely linked into business COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 34 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts processes and applications, can accelerate the velocity of enterprises to respond to changes in customers and markets situations. Embedding communications applications in daily business processes improves quality and efficiency, creates upswings in worker productivity, improves customer loyalty, and increases enterprise profitability. Avaya Intelligent Communication solutions reduce human latency. The time it takes for a desired action is for business decisions can be made faster, easier and more accurately and offer profound transformations in operations. Intelligent communications mean users are no longer bound by the structured communications modes and capabilities that have existed in the past, but are able to construct communications applications that fit into the way you do business, enabling to leverage the power of communications uniquely for each audience in business. Sales personnel can have access to key data on their mobile devices, as well as being alerted to shipping or other customer impacting issues, or operations managers can more easily communicate and collaborate with vendors or downstream operations leveraging presence and ad-hoc conferencing tools. The basis for creating this tight linkage of business applications and communications capabilities resides in two emerging technologies: Web Services in a Services Oriented Architecture (SOA) and Session Initiated Protocol (SIP). Web Services in a SOA construct provide the ability to create new business application integration that incorporates communications services. SOA is aimed at building high level interfaces between applications that allow them to share information and process flows. SOA promises to achieve higher levels of application interoperability which can result in better application integration with business process, faster deployment of new COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 35 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts capabilities, and increased flexibility for application and business process modification. SIP is the communications protocol of choice, providing a rich presence context that is a key foundational element for creating intelligent communication capabilities. Improved worker productivity, customer loyalty and enterprise profitability are achieved through communication-enabling integrated applications By communication-enabling their integrated applications and processes, enterprises are able to gain the strategic value at the heart of IP telephony’s third phase of evolution. For IT organizations, the convergence of communications over SIP and IP, the convergence of IP communication with IT applications using Web Services and SOA, and the ubiquitous access by fixed and mobile devices mean a fundamental transformation to the way they architect their enterprise applications and support. Phones have been migrated over to the SOA telephone system. IBM is the defacto industry standard market leader in SOA. SOA provides the ability to provide flexible response to changing market conditions. IBM dominates SOA with 64% of the market, the rest of market is divided between 12 other participants with measurable market share, none of whom have even been able to garner as much as 8% of the market. IBM dominates the SOA infrastructure markets with more than half of the market because it has the infrastructure offering that can be used to achieve integration in a heterogeneous IT environment and solid services support to permit the large enterprises to change their business model. The small-to-medium sized businesses, multi-site businesses, corporate branch offices, and call centers are target markets. A PBX telephone system switches calls between users within an enterprise while allowing sharing external telephone lines. The COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 36 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts system provides intuitive and easy to use system administration software. This allows customer self-administration and remote administration. 1.3 Convergence of Voice and Data Businesses have separate, incompatible networks to handle their communication. The traditional telephone network circuit-switched network maintains a dedicated line between calling parties for the duration of a call. The "packet-switched" network replaces circuit switching. Internal local area networks and the Internet combine voice, video, images or data. Internet protocol packets of information are readied for transmission. Packets are simultaneously combined with other unrelated packets of information and routed to a final destination where this process is reversed. Packet-switched networks are more efficient than the traditional circuit-switched telephone network, because network paths are not dedicated to a single user, but instead are available to be shared by all users. As a result, network capacity is allocated more efficiently. It is commonplace for networks installed today to be able to support both voice and data usage with Internet protocol packet-switching. Most telecommunications systems do not address the needs of businesses that need to transmit voice communications over both traditional telephone networks and packet-switching networks. For example, businesses may wish to route internal calls over their existing voice network and route calls between offices over packet-switched networks, all using the same telecommunications system. We believe a significant opportunity exists to provide small-to-medium sized and mid-enterprise businesses with an integrated phone system that delivers the benefits of integrated, multi-function telecommunications systems using Internet protocol packet switching networks as well as traditional circuit-switched telephone networks. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 37 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 1.4 Enterprise PBX Premise-based PBX (Private Branch eXchange) is an automatic switchboard for telephone systems. It provides the same basic functions for any business or enterprise that the ranks of telephone operators with handfuls of wiring plugs did that you will remember seeing in old movies. Those essential features provide switching and connection between any two (or more) telephone users and make sure the connection remains in place until it is ended, at which point the system properly terminates the connection. Any system that does this automatically for telephone calls within an organization is a PBX. The reason businesses move to PBXes is to avoid requiring every employee to have a direct line to the public telephone system, each of which incurs a connection and a line charge. A smaller number of lines get shared by all the users and managed by the PBX. This saves money and is more efficient. All IP PBX systems are basically exchange and extension managers for calls based on Internet protocol – also known as VoIP and Internet telephony. The essential advantage they offer to small- to mediumsized businesses is the ability to add features that have only been affordable or available to large businesses up to now. VoIP and Internet telephony are usually also more cost-effective when looking at long-term operating costs, due to lower monthly fees and much lower costs to connect and complete calls. There are three basic kinds of premise-based phone systems. The first kind is called keyless systems or KSU-less systems. They are very lightweight phone systems designed for organizations with fewer than 10 employees that also have very basic phone requirements. The advantage of these systems is that they are very inexpensive and very easy to set up and run. They COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 38 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts are portable and can be moved easily if users relocate. However, in a typical keyless system, there is little support and maintenance from your service provider. 1.5 Session Initiation Protocol (SIP) Standard IT decision makers in medium to large-sized businesses are adopting Session Initiation Protocol (SIP) standard. Drivers, benefits, and barriers to implementation are all part of the package. The business applications for SIP trunking and the advantages of SIP as an enabler for unified communications are a central issue. SIP has become the de facto industry standard for IP telephony development, the businesses and enterprises of all sizes may be well served if they consider SIP as part of their evolving network strategy. The extension of the Internet Protocol as an application layer signaling protocol in the telecommunications network infrastructure is used to implement systems that work for both wireline and wireless networks. SIP enables the suite of IP-based Unified Communications applications to be extended from PBX systems and/or an IP network across different network transport services and end user devices to support remote sites and mobile workers. It allows any user on any network to have access to any content on-demand, regardless of their physical location, the device they’re using, or the access modality they’re employing. SIP is enabling Unified Communications. SIP migration facilitates a number of customer advantages, including increased enterprise productivity through improved support for distributed workforces, timelier and higher quality responsiveness to customers, and reduced capital expenses (CAPEX) and operating expenses (OPEX) for telecommunications infrastructures. On the small business and enterprise side of the house, it gets even better. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 39 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Using SIP helps reduce the cost of networking, plus SIP trunks free the customer from being locked into a specific system vendor or network provider. 1.5.1 SIP Advantages and Applications When deployed in a network, SIP offers a collection of distinct advantages that can be used to develop powerful and compelling end-user applications. SIP-enabled telephony systems offer most of the call processing and feature invocation procedures offered through SS7 — but in a different way. SS7 is a hierarchical, centralized, corebased protocol designed around the limited requirements of telephone sets — which have no innate intelligence. SIP, on the other hand, is a peer-to-peer protocol, which requires a different type of network core infrastructure (preferably MPLS built on an IP platform) with a blend of intelligence located at the edge (i.e., software or end-user device hardware or PBX), complemented by more scalable, granular, and rapidly deployed services offered by network operators. 1.5.2 SIP Part of IP Suite As part of the overall IP suite, SIP is flexible and extraordinarily dynamic. Its functionality can be extended to any number of applications, including enhanced signaling for value-added services, VoIP, and XML-tagged applications. Because XML is used to structure, store, and send information across the network, it works well with SIP in environments where data needs to be retrieved and used, as in a call center environment where customer records must be accessed, or in a healthcare environment where access to customer data is critical. As a “lightweight, text-based protocol,” SIP relies on a text-based command structure that uses the now universally familiar HTTP syntax and URL addressing, both ideal for delivering COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 40 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts telephony over an IP network where the logical integration of applications (e.g., voice, messaging, conferencing, and Web access) can create an enhanced customer experience. SIP is flexible and extraordinarily dynamic. Its functionality can be extended to any number of applications, including enhanced signaling for value added services, VoIP, and XML tagged applications. 1.5.3 Session Initiation Protocol SIP is an application layer protocol, it can ride seamlessly across any transport scheme and be transported across any access modality — cable, DSL, private line, Ethernet, and wireless. SIP can enable a broad range of applications and remote session capabilities (such as mobile application delivery and supply chain management) without the need to provision additional transport services. From an enterprise point-ofview, this is critical because SIP offers seamless connectivity options for service delivery for branch locations, remote workers, or trading partners. Since branch offices account for anywhere from 30% to 90% of the enterprise’s employees globally, depending on the industry, this will be a significant benefit for the enterprise. 1.5.4 SIP Mobility and Presence Support SIP is now incorporated into a range of user devices, including mobile wireless devices and desktop clients. Using SIP, session establishment requests are not sent to a device; they are sent to the network, which locates the user’s “presence” and establishes a session based on the user’s current location and usage profile. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 41 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SIP unshackles users’ physical location from their logical address, they can have fully integrated corporate communications — regardless of location. They can integrate instant messaging and desktop collaboration applications. Presence is a relatively new concept in the networking arena. The user’s client publishes his or her availability within the presence application, and all users then has access to that person’s availability via all services — office wireline voice, mobile, email, chat, etc. Users can customize their availability profile and publish it. Communications are efficient. SIP is the protocol that supports the universal availability of presence information. A call center might use presence to ensure that a customer has the ability to get back in touch with a call center agent who was helping them with a technical support problem. With presence, the agent would not have to be in the call center, but could be located by the network and have the call routed to them, regardless of where they actually are, thus making it possible to fulfill and exceed customer service requirements without reliance on a physical call center presence. 1.6 SIP Application Server The SIP Application Server (SIP A/S) is a robust application development and runtime platform for deploying applications that blend voice, video, data, and presence to form advanced communications services for corporate users and consumers. The SIP Application Server is the leading SIP development and runtime platform. It is designed for Tier 1 wireline and wireless carriers, enterprises, new generation ISPs and ASPs, and a rich ecosystem of ISVs and System Integrators (SIs). The SIP Application Server is a mature, proven platform that meets carrier and large enterprises' exacting requirements for scalability, high availability, service continuity, high performance, and comprehensive management. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 42 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 1.6.1 Session Initiation Protocol (SIP) Trunking Session Initiation Protocol (SIP) Trunking is the virtual equivalent of a traditional business phone line. A SIP trunk is a virtual connection to the Public Switched Telephone Network (PSTN), utilizing an internet connection. SIP is one of the specific protocols that enable VoIP services to work. A SIP trunk replaces the physical connections with virtual connections over existing IP networks. Because information is transmitted through the internet and not landline telephone lines, SIP integrates voice, video data and internet services into one single line. With the invention of VoIP and PBX, voice communications were no longer restricted to traditional circuits and landline phones. Instead through SIP, a signaling language designed to carry data like voice, video and instant messaging, can utilize the internet to highly cut down on the cost and rigidity of older phone systems. All SIP calls are local calls and users do not need a phone line. SIP Services are offered by most business VoIP providers for small and large applications. SIP offers a cost effective way for small businesses to maintain the professional presence. It provides a way for large companies to maintain a local presence. 1.6.2 SIP Trunking: SIP trunking delivers telephone and Unified Communications services over an existing IP network, and replaces traditional telephone lines. Through a SIP trunk, VoIP users can make calls directly to any phone on the PSTN without telephone lines by connecting to a compatible hosted PBX system. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 43 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The only three necessary elements to operate a SIP trunk are the SIP Provider that supplies the services, a phone system that has a trunk side to enable SIP, and a border element to facilitate the connection between your enterprise network and the PSTN or an external IP carrier network. These border elements can be a firewall or switch, and are usually managed by a SIP Trunking provider. With only these three simple elements any business can vastly boost its telecommunications reach. A pre existing IP-PBX installed will only make the process even easier. 1.6.3 Advantages of SIP Trunking Services: SIP means small businesses can appear large and professional with a level of service reserved for more expensive solutions or Fortune 100 companies. This makes it easier for a large business to maintain their local presence, as all SIP calls are local calls. Customers do not have to dial a generic call center number. SIP has inherent flexibility. It allows for users to add or subtract as many phone lines as they need. Everything can be handled through dedicated web portals to tailor the phone system to needs on the fly. SIP trunking can help mitigate disaster scenarios by properly rerouting and prioritizing calls to different networks or phones. Consolidated hardware and setups reduce the installation and maintenance costs of adding or changing your existing phone system. The system can grow without even adding new hardware, a new trunk for extra phone lines doesn’t require any new devices. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 44 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.1 SIP Based IP PBX Market Driving Forces SIP based IP PBX supporting FXO, FXS, ISDN-BRI, T1, E1 and SIP trunks. SIP supports the versatile trunking expansions, including FXO, FXS, ISDN, T1 and E1. The users can fit into all sort of telephony environment. Standard SIP trunks and trusted peers make devices seamlessly integrated with ITSP services. Following illustrates that some companies are more fully integrated with SIP application servers than others. • ISDN PRI (T1/E1): - Alcatel-Lucent, Avaya, Siemens, and Nortel PBXs • SIP Trunk: - Nokia Siemens, Nortel, Broadsoft, and Huawei Soft Switches Information technology (IT) has moved from the back office to the front office with platform technologies, mobile, social business, cloud, and analytics monitoring. The shift occurring is for digital technology to embed itself into every aspect of business endeavor and personal lives. This is an era where the distinction between the technologies and processes that businesses deploy is tightly linked. Digital technology directly impacts customers and markets. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 45 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The boundary between internal operations of the enterprise and its external ecosystem is rapidly disappearing. Customers, markets, competitors, partners, and regulators are inextricably linked. Business leaders are challenged to move their enterprises to the next level of competition. An effective digital business player, transformer, and disruptor position depends on the effectiveness of employing digital technologies. Organizational, operational, and business model innovation are needed to create ways of operating and growing the business. It is a journey. Many companies are using digital technology to create market disruption. Amazon, Uber, Airbnb represent companies using effective disruptive strategic positioning. As entire industries shift to the digital world, once buoyant companies are threatened with disappearing. SIP is a significant aspect of telecommunications applications server disruptive technology, it is enough to look at Avaya and the bankruptcy to see there is a shift to cloud SIP solutions. 2.1.1 A Digital Transformation, An Approach That Enables Organizations To Drive Changes In Their Business Models And Ecosystems Disruption in the business communications markets represents major opportunity for vendors with cloud offerings. This is part of a larger digital transformation, a digital approach to interconnecting everything that enables organizations to drive changes in their business models and ecosystems. By leveraging digital competencies, businesses can grow faster than they would otherwise. A digital strategy, in conjunction with the appropriate unified communications solution permits the implementation of innovative communications services. Digital connectivity with combined voice, video and file transfer can help organizations and COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 46 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts their end users innovate and compete more effectively. It is imperative that organizations have a digital communications strategy in place. Communications and collaboration solutions are migrating to the cloud in every segment of small, medium and large business. In vertical markets, businesses are managing competition that is characterized by disruption. Traditional verticals exploit digital technologies. Initiatives provide innovation in the marketplaces. Communications initiatives are being used to leverage information from the Internet of Things (IoT) and video. New functionality is being built out in the healthcare sector. Communication goes beyond voice. Most people under 30 prefer to communicate via text. SIP IP communications can provide an increase in the quantity and quality of home and personal medical devices for monitoring patient health care. Care delivery is being improved by having monitors linked into a full communications system. By integrating the data from monitoring devices with a real-time communications system, medical professionals can do their jobs better. Making the workforce more engaged and productive by providing users with new tools and solutions that are highly relevant to how they work in the DX era, while delivering enterprise-class voice and video capabilities. Increased productivity is achieved. Users can remotely share and explain real-time data in context. Compelling benefits that organizations can realize from UC&C solutions designed for the digital transformation era: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 47 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.2 SIP PBX Market Shares The SIP trunk: is supported by Nokia Siemens, Nortel, Broadsoft, and Huawei soft switches. Hosted PBX Systems implement unified communications servers. Avaya 1000 is sized for growth. This scalable and centrally managed solution supports up to 150,000 IP users, 40,000 IP clients, or 20,000 SIP clients per call server. Avaya has struggled to keep up with unified communications competitors, Cisco and Microsoft, as services become more cloud-oriented. The Avaya bankruptcy filing and restructuring gives the vendor a chance to create true cloud services. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 48 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 6. SIP Enabled IP PBX Server, Cloud, and Unified Communications Market Shares Revenue, Dollars, 2016 SIP Enabled IP PBX Server, Cloud, and Unified Communications Market Shares Revenue, Dollars, 2016 NEC 15% Microsoft 15% Total $14.2 Billion 2016 Other 15% Huawei 13% ShoreTel 2% Broadsoft 4% West Unified Communications 10% Cisco 6% Avaya 7% Vonage 7% Mitel 8% Source: WinterGreen Research, Inc . COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 49 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 7. SIP Enabled IP PBX Server, Cloud, and Unified Communications Market Shares Revenue, Dollars, 2016 SIP Enabled IP PBX Market Shares Dollars, Worldwide, 2016 In Millions of Dollars NEC Microsoft Huawei West Unified Communications Mitel Vonage Avaya Cisco Broadsoft ShoreTel Other Total (MM$) MM$ 2016 % 2016 2,119.0 2,098.0 1,782.0 1,441.0 1,150.0 987.0 936.0 901.0 352.0 263.0 2,125.0 15.0 14.8 12.6 10.2 8.1 7.0 6.6 6.4 2.5 1.9 15.0 14,154.0 100.0 Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 50 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 8. Selected Enterprise Communications Systems Participants BroadSoft Vonage Ring Central BT 8x8 Fuze West Mitel Orange Business Services Vonage Interroute Microsoft Google Verizon AT&T NTT Shoretel Star2Star Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 51 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 9. SIP Enabled IP PBX Market Shares, Segments SIP PBX SMB, SIP PBX Enterprise, SIP PBX Cloud SMB, SIP Cloud Enterprise / Service Provider, SIP Unified Communications, Dollars, Worldwide, 2016 SIP Enabled IP PBX Market Shares, Segments SIP PBX SMB, SIP PBX Enterprise, SIP PBX Cloud SMB, SIP Cloud Enterprise / Service Provider, SIP Unified Communications, Market Shares, Dollars, Worldwide, 2016 In Millions of Dollars NEC Microsoft Huawei West Unified Communications Mitel Vonage Avaya Cisco Broadsoft ShoreTel Other Total (MM$) MM$ 2016 % 2016 SIP PBX SIP PBX SMB Enterprise SIP PBX SIP PBX Cloud Cloud SMB Enterprise / Service Provider 2,119.0 2,098.0 1,782.0 1,441.0 1,150.0 987.0 936.0 901.0 352.0 263.0 2,125.0 15.0 14.8 12.6 10.2 8.1 7.0 6.6 6.4 2.5 1.9 15.0 691.0 320.5 256.0 439.0 374.0 745.0 879.2 882.0 277.0 587.0 224.0 432.0 45.0 217.0 40.0 478.0 32.0 342.0 14.0 216.0 56.0 148.0 67.0 116.0 645.0 78.0 376.0 78.0 30.0 342.0 14,154.0 100.0 1,454.0 1,857.5 1,944.0 4,171.2 SIP PBX Unified Communications 106.5 779.8 526.0 1,441.0 138.0 188.0 309.0 218.0 1,021.0 4,727.3 Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 52 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.2.1 8x8 More than 47,000 companies have made the transition to 8x8’s cloud-based communications and contact center solutions, including Lazy Dog Restaurants who enabled faster growth by replacing their aging and expensive Avaya system with the flexibility of 8x8. 2.2.2 Microsoft Unified communications as a service (UCaaS) supports the same functions as its premises-based unified communications (UC) counterpart. The chief difference is that UCaaS adheres to a cloud service delivery model. Gartner therefore uses the same six broad communications functions for both (see Note 1 for detailed definitions): Voice and telephony, including mobility support Conferencing — Audioconferencing, videoconferencing and web conferencing Messaging — Email with voice mail and unified messaging (UM) Presence and instant messaging (IM) Clients — Including desktop clients and thin browser clients Communications-enabled applications — For example, integrated collaboration and contact center applications 2.2.3 NEC NEC Corporation of America (NEC) is the leading vendor in the global PBX extensions/licenses market. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 53 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts With a market share of 15%, NEC remained ahead of Avaya and overtook Cisco. NEC has continued strength in Asia Pacific, as well as strong share growth in North America. 2.2.4 NEC NEC IP-PBX is the global leader in that segment. NEC IP PBX/PABX solutions offer the advantage to business communications because of the combination of low cost and high quality feature set. Figure 10. NEC Univerge SIP IP PBX Source: NEC. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 54 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts NEC offers smart communications for small and medium businesses. The UNIVERGE® SV9100 IP PBX/PABX is a unified communications solution targeted to small and medium-sized businesses (SMEs). Intelligent design helps to solve communications challenges. The system is built to scale as the business grows. Figure 11. NEC UNIVERGE SV9100 Features: > Multi-carrier SIP support – SIP technology offers greater resilience and provides more cost effective routing of calls > VoIP (Voice over IP) and Traditional Voice Support – Deploy a pure VoIP solution or any combination of VoIP and traditional phone service with a single SV9100 system > Application Integration – Embedded applications are easily accessed through simple license activation > Scalability – As a business’s communication needs grow with the company > Stackable Architecture – The SV9100’s rack stackable chassis supports server functions, media gateways and media converters through a single unit Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 55 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 12. NEC UNIVERGE SV9100 Functions: > Easy migration from the SV8100 > Investment protection > Features and improved functionality > Enhanced unified communications (UC) choices > High capacity - almost double the ports of the SV8100 Source: WinterGreen Research, Inc. The success underscores the strength of NEC's portfolio of communications solutions, the company's commitment to expand its global enterprise communications footprint and the ability to serve customers worldwide. NEC offers a broad range of enterprise communications solutions – ranging from small to very large systems. These support enterprise and SMB customers effectively. Customer requirements span from traditional TDM to full IP and 100% software-based deployments. NEC has a global leadership position. Solutions are below 100 extensions/licenses. NEC has 21% market share in that segment. NEC does well in Japan, North America, Latin America and Western Europe. The leadership position is garnered from the strength of NEC's portfolio of communications solutions. The company has a commitment to expand its global enterprise communications footprint and the ability to serve customers worldwide. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 56 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.2.5 SIP Cloud Delivery Architectures Market Share Cloud delivery architectures are iterated as multitenant and multi instance. Multi tenant clouds are those, in which all customers share a common (single) software instance. The second is multi-instance, in which each customer receives its own software instance. Both the multitenant and multi-instance architectures possess such cloud characteristics as shared infrastructure (for example, data centers, racks, common equipment and blades), shared tools (for example, provisioning, performance and network management tools), per-user-per-month pricing, and elasticity to dynamically add and subtract users. Large businesses (typically those with more than 1,000 employees) have traditionally preferred a separate software instance because of perceived security, integration and customization benefits. UCaaS implementations are with the multitenant architecture, because it is easier to support, manage, and enhance with new capabilities and services. In contrast, it takes more administration time to manage each user's separate software instance in the multi-instance architecture. The UCaaS market as a whole is transitioning. The early adopter phase has passed to the mainstream phase. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 57 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.2.6 Mitel Source: Mitel COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 58 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.2.7 Cisco Tops PBX Market, Microsoft Leads In UC Source: Cisco. Cisco showed measurable year-over-year revenue growth in the third quarter 2016. while Microsoft once again captured the highest unified communications (UC) revenue market share. On a year-over-year basis, however, the PBX market was down 7 percent while the UC market was flat. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 59 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.2.8 Cloud PBX Market Shares Cisco, Microsoft, BroadSoft, and Avaya with strong Cloud PBX Solutions The Global PBX market accounts for more than $40 billion in annual sales. It continues to grow almost independent of the global economy since PBX purchases are primarily driven by their ability to improve employee productivity. The broader market significantly exceeds $40 billion when the following are added to proprietary PBX sales: · Pull-through services such as planning and design · Systems integration projects · Ecosystem pull-through · Services component of managed PBXs · Hosted PBX · Open source PBX software and distributions · Customer owned server based PBXs Amid the strong market, there are also huge amounts of untapped potential. How SIP Trunking Works: 2.2.9 RingCentral 350,000 businesses use RingCentral. A secure and scalable, enterprise-class platform gives businesses a professional image without costly hardware and maintenance. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 60 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.2.10 West Corporation West Corporation is a global provider of communication and network infrastructure services. West helps its clients more effectively communicate, collaborate and connect with their audiences through a diverse portfolio of solutions that include unified communications services, safety services, interactive services such as automated notifications, telecom services and specialty agent services. For 30 years, West has provided reliable, high-quality, voice and data services. West has sales and operations in the United States, Canada, Europe, the Middle East, Asia Pacific and Latin America. West has processed 64 billion telephony minutes. processed 159M 159 million conference calls facilitated 290M 290 million Emergency 911 calls facilitated COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 61 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Source: West Corporation. 2.2.11 Huawei Huawei is actively supporting developers. In the carrier and enterprise markets, Huawei has a open ICT developer ecosystem strategy. ICT infrastructure open innovative and leading ICT capabilities to developers. An open environment enablement platform is used for the carrier and enterprise markets. Developers create innovative services, rapidly respond to and meet customers' business needs, and help customers achieve business success. Over the next five years, Huawei will invest US$1 billion to implement a developer enablement plan. Huawei has 180 million consumer cloud service users and 27.5 billion app downloads in the Huawei AppStore (HiApp). COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 62 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.2.12 Broadsoft BroadSoft, Inc. (NASDAQ: BSFT), a leading global provider of hosted cloudbased enterprise communications software and services to the telecommunications industry. BroadSoft charges for every user on the system. They add additional charges to enable features of conferencing, call recording. For the quarter ended September 30, 2016 include total revenue that increased 22% year-over-year to $84.1 million. For the second quarter of 2016, total revenue increased 27% year-over-year to $81.7 million. 2.3 SIP PBX Forecast SIP enabled PBX and IP PBX market forecasts indicate a bifurcation in the market between hardware servers and cloud enabled services, either for soft switches and or Unified Communications (UC). The SIP based voice equipment and services market PBX phone systems, voice over IP gateways, UC applications and IP phones markets at $14.15 billion in 2016 are anticipated to grow strongly in the cloud computing segment to reach $59 billion by 2023. Strong growth is anticipated as mega data centers and hyper data centers create networks inside the data centers that force economies of scale and move users beyond server solutions to cloud solutions. The SIP IP technology is a softwre solution that can reside anywhere, on a PBX hardware server or inside a cloud as a software solution. Other combinations of hardware and software are done. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 63 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts What matters is that the broad feature function package known as a PBX gets implemented and made available to users. The SIP trunking is more efficient for users, creating clearer, more consistent voice communications. Figure 13. SIP Enabled IP PBX Market Forecasts Dollars, Worldwide, 2016 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 64 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 14. SIP Enabled IP PBX Market Forecasts Dollars, Worldwide, 2016 SIP Enabled IP PBX Market Forecasts Dollars, Worldwide, 2016 In Millions of Dollars Total MM$ 2016 2017 2018 2019 2020 2021 2022 2023 14,154.0 15,868.6 18,313.4 21,786.0 26,728.9 33,808.9 44,042.9 59,004.3 Source: WinterGreen Research, Inc. 2.3.1 Digital Private Branch Exchange (PBX) At the End of Its Life Cycle Consolidating into a single platform the numerous UC solutions that organizations typically have deployed within their environments — reducing the cost and complexity of multiple solutions. Embedding communications into applications in which employees work so that they can just clickto-call, conference, or collaborate from within the application to engage other participants more productively. A sales person who does most of his/her work in Salesforce.com likes the digital integration with application software. Integrating and customizing communications into line of business (LoB) processes and applications to drive enhanced performance within the organization. Upgrading a manually-intensive manufacturing process to a more contextual, automated one that includes embedded communication alerts and notifications for COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 65 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts designated persons, along with intuitive links to messaging, presence, and collaboration technologies in order to help address a situation in real time is being done. Systems minimize a work stoppage or downtime. Vertical market applications can benefit from these more user-defined capabilities. Utilizing a mobile-first user experience with an intuitive, mobile-first design paradigm that makes people more productive on mobile devices with a less-restrictive form factor. Enabling employees to access enterprise services anywhere with the same intuitiveness and simplicity of their consumer apps. This is very different compared to a traditional enterprise, IT-defined desktop environment. SIP IP is being used to easily create unique, custom communications experiences that project a company’s offerings over standard, off-the-shelf experiences for verticals such as hospitality, healthcare, retail, government, media, and entertainment. This enables users to rapidly use focused, context sensitive communications applications or engage the business as required. Mobility is a core part of the story — and a major driver. It reaches across most or all of the technologies. It increasingly offers end users multiple device support; a simpler, more intuitive user experience; a mobile-centric design device that features support for independence. Features, functions, and rules associated with the user, not the mobile device and mobile business applications are used to communicate and collaborate internally in real time as well as externally. In a global business environment, companies large and small have mobile workforces in varying degrees that include executives, knowledge workers, telecommuters, sales staff, service personnel, and field workers. The following trends are driving the market: Increasing emphasis on the use case to help justify customer investment COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 66 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Support for a simpler end-user experience Support for a more intuitive user interface. End users are increasingly accessing their business applications from a browser Delivery model is maturing Communications service providers (CSPs) expand managed and hosted/cloud offerings UC vendors add cloud and hybrid solutions either directly and/or in conjunction with channel partners. Google with Google Apps and the increased focus by Microsoft Office on browser-based access to productivity tools, users are now able to work completely in the browser from anywhere in the cloud application delivery model. The integration of collaborative applications and business processes is becoming essential. Via APIs and SDKs, organizations have started embedding communications within the applications they use. UC is no longer another app that sits on the desktop, the communications functions are brought forward and made available to the users in context, when they need them, and how they need them, without switching applications. The business model is slowly shifting from upfront capital expense to recurring per user or seat/per month consumption and pricing (i.e., operational expense). Tighter integration of videoconferencing with UC&C environments is occurring; WebRTC gaining traction as a video (and voice) user endpoint. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 67 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Mobility has become central to improving employee productivity, changing how information is accessed and exchanged, creating new revenue streams, and enabling remote/flexible working solutions, among other benefits. With mobility as a core part of the UC&C story, vendors can offer end users an increasing ability to communicate and collaborate internally, as well as externally, in real time. Network – With a lot of provider’s simply rebranding SIP trunking service hosted on other provider’s networks, it’s important to distinguish if the network is hosted and run by SIP provider directly. Everything is easier without a middleman. Security – A standard concern for almost any service over the internet, it’s important to ensure the necessary security measures are in place to keep your information safe. With all of data transmitted over the Internet users want a SIP trunk to be secured with a solid, protected network and anti-fraud system in place to monitor any feedback and mitigate any risks. Number Porting –keep existing phone number, make sure provider is capable of number porting from specific region. Most services and providers do offer porting, but it can be limited in different regions around the world. Customer Service – Although SIP Trunking itself does a good job and disaster mitigation, if everything goes down users want to make sure to get ahold of the provider as soon as possible. A five-minute outage could quickly turn into a problem. 2.3.2 SIP Based IP PBX Cloud and Unified Communications Unified communications and collaboration brings together multiple forms of communications, like voice, video and data services, and software applications into a COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 68 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts single environment, improving business processes making it easier for employees to connect. Unified communications and collaboration can include components like: Instant messaging Presence – knowing if a contact is free or busy Unified messaging – the ability to retrieve all your messages from one central location Conferencing applications – to connect larger groups and allow them to share information and ideas Teamwork applications – to coordinate work on group projects Video conferencing – on your PC, mobile device and using room-based systems Mobile applications – extending unified communications and collaboration to smartphones and tablets COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 69 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.3.3 SIP Enabled IP PBX SMB Market Shares Dollars, Worldwide, 2016 Figure 15. SIP Enabled IP PBX SMB Market Shares Dollars, Worldwide, 2016 SIP Enabled IP PBX Market Shares Dollars, Worldwide, 2016 In Millions of Dollars MM$ 2016 % 2016 SIP PBX SMB ` 2016 NEC Mitel Avaya ShoreTel Other 2,119.0 1,150.0 936.0 263.0 2,125.0 15.0 8.1 6.6 1.9 15.0 691.0 277.0 224.0 45.0 217.0 47.5 19.1 15.4 3.1 14.9 Total (MM$) 6,593.0 46.6 1,454.0 100.0 Total Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 70 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.3.4 SIP Enabled IP PBX Enterprise Market Shares Dollars, Worldwide, 2016 Figure 16. SIP Enabled IP PBX Enterprise Market Shares Dollars, Worldwide, 2016 SIP Enabled IP PBX Enterprise Market Shares Dollars, Worldwide, 2016 In Millions of Dollars MM$ 2016 Total % 2016 SIP PBX Enterprise % 2016 NEC Mitel Avaya ShoreTel Other 2,119.0 1,150.0 936.0 263.0 2,125.0 15.0 8.1 6.6 1.9 15.0 320.5 587.0 432.0 40.0 478.0 17.3 31.6 23.3 2.2 25.7 Total (MM$) 6,593.0 46.6 1,857.5 100.0 Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 71 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.3.5 SIP Enabled IP PBX Cloud SMB Market Shares Dollars, Worldwide, 2016 Figure 17. SIP Enabled IP PBX Cloud SMB Market Shares Dollars, Worldwide, 2016 SIP Enabled IP PBX Cloud SMB Market Shares Dollars, Worldwide, 2016 In Millions of Dollars NEC Microsoft Huawei Mitel Vonage Avaya Cisco Broadsoft ShoreTel Other Total (MM$) MM$ 2016 % 2016 SIP PBX Cloud SMB % 2016 2,119.0 2,098.0 1,782.0 1,150.0 987.0 936.0 901.0 352.0 263.0 2,125.0 15.0 14.8 12.6 8.1 7.0 6.6 6.4 2.5 1.9 15.0 256.0 439.0 374.0 32.0 342.0 14.0 216.0 56.0 148.0 67.0 13.2 22.6 19.2 1.6 17.6 0.7 11.1 2.9 7.6 3.4 12,713.0 89.8 1,944.0 100.0 Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 72 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.3.6 SIP Enabled IP PBX Cloud Enterprise / Service Provider Market Shares Dollars, Worldwide, 2016 Figure 18. SIP Enabled IP PBX Cloud Enterprise / Service Provider Market Shares Dollars, Worldwide, 2016 SIP Enabled IP PBX Cloud Enterprise / Service Provider Market Shares Dollars, Worldwide, 2016 In Millions of Dollars MM$ 2016 Total NEC Microsoft Huawei Mitel Vonage Avaya Cisco Broadsoft ShoreTel Other Total (MM$) % SIP PBX 2016 Cloud Enterprise / Service Provider % 2016 2,119.0 2,098.0 1,782.0 1,150.0 987.0 936.0 901.0 352.0 263.0 2,125.0 15.0 14.8 12.6 8.1 7.0 6.6 6.4 2.5 1.9 15.0 745.0 879.2 882.0 116.0 645.0 78.0 376.0 78.0 30.0 342.0 17.9 21.1 21.1 2.8 15.5 1.9 9.0 1.9 0.7 8.2 12,713.0 89.8 4,171.2 100.0 Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 73 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.3.7 SIP Enabled IP PBX Unified Communications Market Shares Dollars, Worldwide, 2016 Figure 19. SIP Enabled IP PBX Unified Communications Market Shares Dollars, Worldwide, 2016 SIP Enabled IP PBX Unified Communications Market Shares Dollars, Worldwide, 2016 In Millions of Dollars NEC Microsoft Huawei West Unified Communications Mitel Avaya Cisco Broadsoft Other Total (MM$) MM$ 2016 % 2016 SIP PBX Unified Communications % 2016 2,119.0 2,098.0 1,782.0 1,441.0 1,150.0 936.0 901.0 352.0 2,125.0 15.0 14.8 12.6 10.2 8.1 6.6 6.4 2.5 15.0 106.5 779.8 526.0 1,441.0 138.0 188.0 309.0 218.0 1,021.0 2.3 16.5 11.1 30.5 2.9 4.0 6.5 4.6 21.6 12,904.0 91.2 4,727.3 100.0 Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 74 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.4 SIP Based IP PBX Pricing Pricing –Service pricing varies based on provider and level of service offered. Business-class service means users pay more. Cisco 20 VoIP Phone PBX - ... $3,295.00 Altigen Max1000 Ip-pbx $499.99 Sangoma Vega 50 - VS0114 - ... $352.50 Digium G400 VoIP Gateway $2,995.00 Grandstream HT814 4 port ... $89.99 50 Phone Cisco IP Office ... $6,995.00 Panasonic Kx-ncp500 ... $299.99 Yeastar MyPBX SOHO $288.94 Cisco 20 VoIP Phone PBX - ... $3,295.00 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 75 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco Spark Plus $ 12 .00 per user per month Unlimited in-app audio calls (VoIP) Altigen Max1000 Ip-pbx $499.99 Sangoma Vega 50 - VS0114 - ... $352.50 Digium G400 VoIP Gateway $2,995.00 Grandstream HT814 4 port ... $89.99 50 Phone Cisco IP Office ... $6,995.00 Panasonic Kx-ncp500 ... $299.99 Yeastar MyPBX SOHO $288.94 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 76 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 2.5 SIP Based IP PBX Regional Analysis SIP IP PBX Regional Market Segments, Dollars, 2016 Rest of World 1% Rest of Asia 2% Japan 2% United States 81% China 4% Total $14,15 Billion 2016 Europe 10% Source: WinterGreen Research, Inc . COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 77 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SIP IP PBX Solutions Regional Market Segments Dollars, Worldwide, 2016 In Millions of Dollars MM$ 2016 % 2016 United States Europe China Japan Rest of Asia Rest of World 11,464.7 1,415.4 566.2 283.1 283.1 141.5 81.0 10.0 4.0 2.0 2.0 1.0 Total (MM$) 14,154.0 100.0 Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 78 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.1 Avaya Avaya offers Internet telephony, wireless data communications, and customer relationship management (CRM) software. The company provides business communication solutions. Avaya provides services to organizations at over 1 million customer locations worldwide. Operations are divided globally in 5 regions. The systems support a maximization of network uptime. Capabilities permit delivery of communication services. The enterprise telecommunications services platform delivers a converged network, advanced applications, and 750 call-processing and telephony features. 3.1.1 Avaya Networking Technology is driving waves of digital transformation, including the Internet of Things (IoT), which delivers effective omnipresence solutions for devices. Avaya supports heart machines, heating systems, and helicopters. Digital online, integrated, available connectivity is offered. Innovative network cybersecurity complements efficiency and performance provided by the cloud based SIP PBX systems. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 79 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 20. Avaya Networking Technology Driving Digital Transformation Network Virtualization Unified Access Video Surveillance Cloud Source: WinterGreen Research, Inc. Avaya cloud-based solutions are positioned for pay as you grow expandability. Endpoints and applications are used to support business processes that drive success. For any size business, Avaya delivers cloud open architecture connectivity. Avaya cloud-based solutions support flexibility, reliability, security and scaling. They transfer the burden of technical and architectural maintenance to cloud partners. 3.1.2 Avaya Cloud Options Figure 21. Avaya Cloud Options Enterprise Cloud Managed Services Cloud Solutions Delivered by BT Wholesale Cloud Experience Built for Mobile Users Avaya Equinox™ Experience Communication that is simple, transparent, in context, and user defined Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 80 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Mobile user interactions are supported by Avaya Equinox. Equinox cloud includes action-oriented workflows. There is an intuitive, top-of-mind status. All communications are in one place. Users can quickly join and participate in meetings, retrieve or send messages, and access hundreds of communications features. Users can take immediate action with one touch. Mobile and land line are supported: HD video is available. Voice calls deliver clarity. Remote access works without VPN connectivity. Voice and video are reliable and secure on any device, anywhere. Telephony features include one-number reach. Multiple devices can be used simultaneously when needed. Systems are optimized to the device—mobile, tablet, browser, desktop are supported. The experience enables multiple capabilities while maintaining mobile simplicity. 3.1.3 Avaya Communication Server 1000 The Avaya Communication Server 1000 is an integrated access element of the Avaya Aura® Platform. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 81 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 22. Avaya Communication Server 1000 Functions Serve customers Serve employees Improve contact center communications Improve IVRs Work-anywhere (office, home, on the road) Provide hundreds Provide feature function capabilities Provide high-quality unified messaging Provide conferencing Source: WinterGreen Research, Inc. 3.1.4 Avaya Professional-Grade Business Communications Avaya provides a robust offering of services. Automated attendants, conferencing, call forwarding and unified communications are benchmarks for modern business. A scalable and centrally managed solution supports up to 150,000 IP users, 40,000 IP clients, or 20,000 SIP clients per call server. The Communications Server 1000 is designed with no single point of failure, and it has campus redundancy, geographic redundancy, and branch survivability. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 82 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.2 BT / Avaya IP PBX Cloud Figure 23. Avaya Cloud Options Enterprise Cloud Managed Services Cloud Solutions Delivered by BT Wholesale Cloud Experience Built for Mobile Users Avaya Equinox™ Experience Communication that is simple, transparent, in context, and user defined Source: WinterGreen Research, Inc. 3.3 Equinix / Avaya Cloud SIP Communications Figure 24. Avaya Cloud Options Enterprise Cloud Managed Services Cloud Solutions Delivered by BT Wholesale Cloud Experience Built for Mobile Users Avaya Equinox™ Experience Communication that is simple, transparent, in context, and user defined Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 83 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.4 Cisco Cisco unified communications is the leading product in its category. The product is positioned to make teamwork work: Cisco Spark offers combined messaging, meetings, and calls. Meetings are supported with the ability to see, hear, and share content with everyone. Users can join a meeting from anywhere, on any mobile device or video system. Messaging (IM) gets information transmitted quickly and conveniently. . Business messaging depends on a robust feature set. Users can spend less time in email. Calling is supported as users make or receive all calls where and when they want: through the Cisco Spark app, on an IP phone, or on a conference room video system. Content sharing is supported. Persistent sharing simplifies posting and finding information. Users can share content in team spaces and it stays in context. Cisco unified communications integration and Bots help users rely on fewer systems and apps. Integrations can streamline workflows and bots can automate actions. A secure, scalable, and comprehensive collaboration platform helps teams get work done more efficiently. 3.4.1 Cisco Existing Collaboration Existing collaboration for customers is supported. Cisco collaboration depends on providing features that build on existing investments to securely add messaging, filesharing, calling, and video capabilities. Cisco Spark is a secure space for users to create, share, and get work done together. Functions support transformation of team projects. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 84 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco Spark Plus is implemented as a app, a business messaging app, conferencing solution, and phone system all in one. Cisco Spark Plus M1 online supports sending a message, making a video call, or executing a screen share. Figure 25. Cisco Spark Plus App Features Search messages, files, and users Integrate apps ZenDesk GitHub Zapier Security End-to-end encryption Locking messaging spaces Admin controls Single Sign-On Administrative portal Org analytics and metrics Integrate with Exchange, Outlook, and corporate directory Live support Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 85 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco business phone systems and video conferencing can be added to Cisco Spark service. Figure 26. Cisco Spark Board: A 3-in-1 Team Collaboration Device for Meeting Rooms Source: Cisco. 3.4.2 Apple and Cisco Working Together on IP Communication Apple and Cisco are working together to deliver a mobile experience for apps, voice, and collaboration on iPhone and iPad. Cisco Spark video systems are evolving. Video conferencing can be implemented pervasively throughout an organization. Cisco has made it easy to deploy. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 86 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco has stepped up the pace of innovation. The level of change is dramatic. Spark™ Board is a team collaboration device that combines wireless presentation, digital white boarding, and video conferencing. It is fully cloud- and touch-based and designed for rich team collaboration, securely connecting physical and virtual meeting rooms. Cisco Spark™ Board resides in meeting rooms. It can be connected to the Cisco Spark service to facilitate continuous workflow. Cisco Spark service is initiated before the meeting starts. It continues to work after everyone has left the physical room. Through the Cisco Spark app, team members both in the physical conference room and attending remotely can meet, message, call, and, white board from anywhere through their Cisco Spark app-enabled device. The Cisco Spark Board permits users to bring teams together and work with you wherever you are. Cisco Spark service and app offers an integrated and comprehensive life-cycle approach to teamwork. It is a leading solution. The Cisco Spark Board performs key activities that teams need to work together in a physical meeting room. The Cisco Spark service connects the board to a virtual space so work can continue even after the meeting has ended. 3.5 AT&T AT&T unified communications services leverage Cisco SIP IP collaboration telephony. Unified communications (UC) are integrated solutions that make multiple tools, instant messaging (IM), conferencing, email, and voice calling ready for seamless interactions with co-workers, partners, and customers. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 87 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Users can simplify delivery of real-time communication and collaboration solutions to the enterprise. Users are able to log into one system for voice, e-mail, IM, and conferencing. Users can stay on calls as they move between wired and wireless environments. AT&T offers a cloud-based, as-a-service real-time communication and collaboration offering. Unified communications services integrate multiple UC tools with presence behind a single user interface. AT&T offers unified communications. AT&T collaborate permits users to manage multiple locations and multiple devices. AT&T Collaborate™ unifies communications. This flexible solution blends voice, video, IM, and conferencing. They function like one. The collaboration tools leverage cloud-based unified communications. Collaboration transforming the work experience depends on workers using mobile devices. AT&T UC helps support real-time communications with internal and external teams. Cloud-based UC solutions can help increase productivity. 3.5.1 Cisco Hosted Collaboration Solution from AT&T Cisco hosted collaboration solution from AT&T is able to bring voice and UC features together in new ways and to new places. A variety of UC capabilities give a mix of features. UC solutions are available via the cloud. They enable organizations to leverage UC platforms to integrate with global conferencing and mobility platforms to deliver an array of collaboration tools in a single offering. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 88 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 27. Cisco Hosted Collaboration Solution from AT&T Features Single number reach for wired and wireless devices Presence and instant messaging Video, voice, and Web conferencing UC federation Cloud-Based Unified Communications Source: WinterGreen Research, Inc. Cisco hosted collaboration solution from AT&T leverages unified communications to help change delivery of voice and collaboration services. Using on-premises solutions and buying equipment, users can access virtual resources in the AT&T cloud over a global IP network: Users can scale with ease and speed to keep up with growth and changing business needs. High-bandwidth, low-latency performance of the AT&T network works with UC Federation. Users can connect with multiple cross-functional teams inside and outside the company. They are using a collaboration solution. 3.5.1 Cisco Hosted Collaboration Solution from AT&T Hybrid and Existing Voice Services Users can tap into enhanced voice and UC features. Cisco hosted collaboration solution from AT&T supports: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 89 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 28. Cisco Hosted Collaboration Solution from AT&T Functions Integration with existing voice platforms Multiple devices Multiple platforms Multiple operating systems Multiple carriers Hybrid cloud/on-premises environments Source: WinterGreen Research, Inc. Cisco collaboration systems permit users to scale with ease to meet dynamic business needs. Users can add communications features. As the business grows, users stay connected and productive while helping keep the cost and complexity of unified communications to a minimum. AT&T leverages Cisco cloud services to transform the way to deliver communications services to an organization. Unified communications cloud solutions give access to virtual resources over the global AT&T network. Users purchase communications as a service, not as an asset, and AT&T delivers those services where and when needed. This makes scalability possible. As the business grows and changes, so do communication needs. AT&T can help keep this growth lean, efficient, and effective. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 90 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The Cisco Hosted Collaboration solution from AT&T integrates multiple communication and collaboration tools such as voice, single number reach, IM/chat, email, web/audio and video conferencing, voicemail, unified messaging and mobility, with presence, behind a single client. The communication capability is accessible from mobile phones, desktops, laptops, and other wired and wireless devices. This solution enables real-time communication and collaboration, regardless of location or device. The solution supports the ability to work with team members around the globe on desktops, laptops, landlines, smart phones, and tablets at the same time. It works almost anywhere, anytime. Users can communicate with reliable high quality voice from the AT&T cloud. There is no need to buy PBXs and software licenses, or renew maintenance contracts. This collaboration solution employs the Cisco Hosted Collaboration Solution (HCS) platform as the core of the service and comes with a full suite of advanced collaboration features and capabilities. Capital costs can be kept to a minimum with a convenient and reliable monthly subscription-based price model. A multivendor support program is necessary because no single vendor provides all the pieces needed for a complete unified communications solution. It brings the best components together and provides a single point of contact for communication and collaboration services. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 91 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 29. Cisco Hosted Collaboration Solution from AT&T Functions Simple One point of contact Design, implementation, service additions, upgrades and ongoing support Easy migration pathway from legacy voice systems Advanced unified communications Mitigate technology risk Avoid obsolescence Preserve existing investments Easy to manage solution Integrates with legacy TDM/IP PBX systems Avoid capital investments by procuring unified communications Offered as a Service; per-user, per month Avoid infrastructure, maintenance and upgrade costs Carrier-grade quality Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 92 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 30. AT&T Cisco Unified SIP Collaboration System Features Premier network Collaboration capabilities integrating with leading UC platforms Local, in-country phone numbers in over 150 countries Reduce audio costs Integration with AT&T IP Flexible Reach Integrated voice/data SIP trunks Reduce costs Secure connectivity Built-in security Redundancy Virtualized infrastructure monitored 24x7x365 Extend reach with scalable, global unified communications Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 93 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.6 NEC NEC is the global leader in the IP PBX market. NEC IP PBX/PABX solutions offer significant advantage to business communications. 3.6.1 NEC IP-PBX Figure 31. NEC IP-PBX Source: NEC. NEC offers smart communications targeted to small and medium businesses. The NEC UNIVERGE® SV9100 IP PBX/PABX is a unified communications solution for small and medium-sized businesses (SMEs). Intelligent design helps to solve communications challenges. The system is built to scale as the business grows. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 94 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 32. NEC UNIVERGE SV9100 Features: > Multi-carrier SIP support – SIP technology offers greater resilience and provides more cost-effective routing of calls > VoIP (Voice over IP) and Traditional Voice Support – Deploy a pure VoIP solution or any combination of VoIP and traditional phone service with a single SV9100 system > Application Integration – Embedded applications are easily accessed through simple license activation > Scalability – As a business’s communication needs grow with the company > Stackable Architecture – The SV9100’s rack stackable chassis supports server functions, media gateways and media converters through a single unit > Investment protection > More features and improved functionality > Enhanced Unified Communications (UC) choices > High capacity - almost double the ports of the SV8100 Source: WinterGreen Research, Inc. NEC UNIVERGE SV9100 has easy migration from the SV8100. NEC offers a broad range of enterprise communications solutions. – ranging from small to very large systems - that effectively support enterprise and SMB customers whose requirements span from traditional TDM to full IP and 100% software-based deployments. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 95 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.6.2 NEC IP-PBX NEC IP-PBX/PABX is positioned as the backbone of a company. The phone system ensures that incoming and outgoing calls reach the right person. It keeps working during busy times, grows with a business and provides technical features that enhance the phone system. The best communication system for regulating the phone traffic in a specific company can be determined by a number of factors. The size of a business and number of workstations determine feature function packages bought. NEC is the global market leader, one of the NEC IP-PBX/PABX solutions below offers specific advantages for any business communications. Figure 33. NEC SL1000 IP PBX Source: NEC. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 96 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts SL1000 is an intelligent cost-effective IP PBX/PABX system that is equipped with capability to adapt functions for immediate and emerging business needs, covering SMEs and small offices, home offices (SOHOs). The NEC Univerge SV9100 IP PBX/PABX is a unified communications solution targeted to small and medium-sized businesses (SMEs). Its intelligent design helps solve communication challenges and is built to scale. The UNIVERGE SV9300 IP PBX/PABX is a robust, feature-rich, Unified Communications enabled system targeted to medium-sized businesses. It is designed to solve communications challenges, permitting communications scale. 3.6.3 NEC Univerge SV9500 The NEC Univerge SV9500 IP PBX/PABX is a powerful communications solution that is designed to provide competitive businesses with the high-efficiency, easy-todeploy technology that they require. Reliable, scalable, adaptable, and easy-tomanage, the SV9500 is built on cutting-edge technology that supports voice, unified communications and collaboration, unified messaging, and mobility out-of-the-box, all the while remaining easy to manage. 3.7 Mitel Mitel VoIP phone system to get the most functionality depends on purchasing VoIP handsets. These range in price from $30 for a basic device to several hundred dollars for phones that support HD video conferencing. VoIP technology has advanced beyond landline capability. A VoIP system can provide advanced business features, while also saving money and improving productivity. Added advantages include unified messaging, video, presence, call center capabilities, and single phone number mobility. UC systems reduce costs. By porting COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 97 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts calls to the Internet, UC eliminates or greatly reduces reliance on phone company services. A UC implementation for hospitals includes advanced uses, direct integration with electronic health record (EHR) systems. Business phone system requirements include the desire to eliminate poor voice quality, outages or dropped calls, the need for better call routing, a reduction in contract or maintenance costs and a desire for additional features. Internet versus traditional phone lines potentially bring big cost savings. An array of available features on advanced phone systems include audio, video and Web conferencing. The ability to program speed dials through a computer interface is a compelling feature. Sometimes users want multiple voicemail boxes. Occasionally employees share desks but want their own separate phone system on that desk. A message service can greet callers and route calls to the appropriate staff member. 3.7.1 Mitel Phone System Offers Flexibility With the rise of mobile communication, the anytime / anyplace nature of business and the realities of multitasking have raised the stakes. With multiple offices, a number of employees who travel regularly or staffers who work remotely, a phone system requires flexibility. Mitel phone system offers a central hub that can seamlessly manage telecommunications traffic without compromising quality or productivity. The right system offers freedom and flexibility for all users. Traditional phone systems use landlines and trunks, and transmit voice using analog or digital devices. Each employee has his or her own phone extension and voice mailbox as well as conferencing and caller ID features. Traditional systems are COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 98 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts highly reliable and can continue working even during power outages and other network interruptions. There is plenty of infrastructure in place. Traditional phone systems are best for businesses that make mostly local calls. They can be costly for those that do a lot of long distance and international calling. 3.7.2 Mitel VoIP VoIP uses a dedicated or shared Internet connection to one or more locations using special IP phones. These systems reduce telecommunications costs by delivering calls over the Internet, requiring that users pay for extensions being used, reducing staff, and eliminating costly voice lines and local and long distance contracts. A basic VoIP system lowers operating cost by eliminating multiple vendors and communications providers. Refocusing IT staff from hardware-based systems to other areas of the business saves resource. VoIP systems do not require the large capital expense that traditional phone systems do. They use existing computer networks. The applications and management of VoIP systems reside with the service provider. Instead of spending money on a costly capital expenditure, Mitel VoIP gives a predictable monthly operating expense. Updates to VoIP systems are managed through an online admin portal. Instead of sending a technician to physically move a phone line, the user simply moves his or her phone. Mitel can remotely configure a new jack or the phone is reprogrammed through the portal with a new extension. Voice is treated as an application running on the network, meaning that only one data network has to be maintained. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 99 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts VoIP also allows for more flexibility than traditional systems. Businesses with multiple offices can be connected with remote employees. Phones can be relocated without complex hardware installations. VoIP can still make calls from the network. Access to an Internet connection means calls can be routed to mobile devices or remote computers. Users can receive and respond to voicemail messages. VoIP Internet connection requires an optimal network performance to ensure acceptable voice quality and reliability. Wireless phone users in the past have had substandard call quality issues. With ubiquitous broadband, makes wireless connectivity as good as desktop phones. Business can be seriously adversely affected by poor phone service. Call quality, dial tone, and connection are fundamental phone service requirements. These fundamentals depend on remaking network infrastructures that is optimized for data, to be reconfigured for converged data and voice traffic. VoIP needs to take priority over data. Systems that monitor and prioritize voice over data traffic are not universal. Telecommunications managers need to evaluate network performance as a whole in the context of the ability to handle converged data and voice traffic. If the business depends on applications and quality user experiences, t Mitel Phone System Offershen an expensive network is necessary. Teleco administrators need to configure broadband networks to support VoIP. Premises-based deployments require substantial up-front investment in infrastructure. The cost of staffing personnel to manage and maintain the network is an issue. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 100 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.7.3 Mitel Cloud Solution As storage and bandwidth charges fall, cloud solutions are becoming more affordable for business communications systems implementations. The cloud is able to reduce licensing costs and IT staff. With a cloud solution, a business can focus on growing their business. The cloud requires a low up-front investment and no software or hardware and licensing. You pay only for what you use. Companies have been uncomfortable with cloud deployments because they do not like to relinquish control over their network. Some believe that the cloud is not as secure as a premises based solution. This, however, is a myth. Cloud solutions can be highly secure and reliable. In fact, they may be more so when you consider the disasters that can strike a workplace, such as power outages and weather-related events. 3.7.4 Mitel Hybrid Solution A hybrid deployment utilizes combined premises-based and cloud solutions to build a network. It lets users maintain control where wanted and use existing infrastructure, resulting in a significant cost savings, flexibility and scalability. A hybrid solution can save the business thousands of dollars from having to upgrade its entire LAN infrastructure to accommodate IP-only phones. A business phone system is comprised of desktop and wireless devices. Features support better, faster and more efficient communication. Beyond standard features are call transfer, speed dialing. and voicemail. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 101 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts A pool of phones can be shared by multiple employees. Real estate agents and financial traders are often out of the office. They may not need dedicated phones. Hot desking allows users to enter an access code into any phone on the system and automatically have access to personalized phone settings, speed dials, and voicemail. Hot desking makes phone sharing possible and can help businesses save on equipment and office space. Auto Attendant has become a widely available business phone feature and comes standard with many systems. Some systems allow callers to search the directory by entering the first three letters of the individual’s last name. Automatic call distribution routes calls when customers call a company but do not need to speak with anyone in particular. The automatic call distribution feature allows system administrators to determine how calls will be distributed within an organization or call center. The automatic call distribution feature routes calls to technicians who have been idle longest. Or, they can be routed to staff in order of seniority, technical expertise or location. A conference call, or audio conferencing, feature allows users to join more than two phone lines on a call. Depending on the system, though, that number of participants can range from three to many. Advanced systems include the capability for video conferencing. Many service providers offer video conferencing. It is important to work with a provider that is reliable and can handle the bandwidth needed to support a video conference. Unified messaging takes care of the collection of voice mail, email, fax and text messages in one interface. The access point for messages could be a computer application that is included with a phone system. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 102 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.7.5 Mitel Presence Presence is the status indicator of each person on the system. It allows every user to see each other’s status at a glance so they can decide the method for communication that is needed. If a user sees the person, it is possible to choose to instant message instead. Another user would benefit from seeing his co-worker’s status set to gone for the day. While the do not disturb (DND) feature is widely available, different systems handle the process differently. With some systems, callers get a busy signal or hear a recorded message that the person being called does not wish to be disturbed. Other systems’ DND feature sends calls to voice mail or allows you to route them to another person. Follow me feature is the polar opposite of DND. It’s a type of call routing that allows users to program a list of numbers to be tried, in order, for locating a person who is not at the desk. Mitel is able to install the system and provide support for technical issues. Mitel specializes in installing particular systems in businesses of every size. Training and support are vital. Phone systems are priced all over the place. Some that have low monthly fees have large up-front costs. Others are reasonably priced at the outset and on a monthly basis but then require regular and costly upgrades or service fees. The design of the user interface is key. Is the phone easy to use? Will employees (and customers, if they’ll be using them, too) be able to figure out how? COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 103 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 3.8 Microsoft SfBS Premises-Based Version of Skype Microsoft is a major UCaaS provider partnered with the communications service providers (CSPs). CSPs generally have pursued a multi-instance cloud version of Microsoft Skype for Business (SfB) Server (SfBS). SfBS is the premises-based version of Skype. With a full feature set, select partners have virtualized via a combination of their own and Microsoft tools. During the past year, Microsoft has begun to emphasize Microsoft Skype for Business Online (SfBO) — delivered by Microsoft personnel and run out of Microsoft data centers. This is delivered as part of Office 365. Through a series of licensing policies, R&D investment and marketing tools, Microsoft has sent the message that the future is centered on SfBO. This pivot from SfBS (the on-premises version) to SfBO has strained some of the Microsoft-partner relationships. UCaaS vendors include AT&T, BT, Interoute, NTT Communications (Arkadin) and Orange Business Services. They have invested in Microsoft Skype UC, and they are all navigating this changing landscape. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 104 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 34. Microsoft Partners Affected by Pivot from SfBS (On-Premises) to SfBO Strained some of the Microsoft-partner relationships UCaaS vendor partners AT&T BT Interoute NTT Communications (Arkadin) Orange Business Services Have invested in Microsoft Skype UC Navigating this changing landscape. Source: WinterGreen Research, Inc. 3.9 RingCentral Phone System In The Cloud RingCentral offers an all-inclusive cloud phone system. It supports HD video meetings, delivers enterprise level security and reliability. RingCentral solution empowers users with mobile apps. It enables BYOD for business communications across locations and devices. The system delivers flexible management across locations. The systems work from smartphones, tablets and PCs providing reliability and quality of service. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 105 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 350,000 businesses use RingCentral. A secure and scalable, enterprise-class platform gives businesses a professional image without costly hardware and maintenance. 3.10 8x8 Global Cloud Communications 8x8 Global Cloud Communications is seeking to leverage its cloud based solution to compete effectively with Avaya at the time Avaya has filed for bankruptcy. It is seeking to capture business from companies that have until now relied on Avaya for their communications. It is an opportunity for 8x8 to convert Avaya customers to cloud communications services. Businesses can achieve better feature function packages at less cost beyond current Avaya systems. 8x8 cloud offers a platform approach to communications services. Figure 35. 8x8 Virtual Office Functions Cloud-based business communications Communications platform Goes anywhere Unified communications as a service Providing users a leading solution. 8x8 Virtual Office lightens the load for IT COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 106 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Freeing IT department to take on bigger business challenges. Eliminating IT communications hardware and software upgrades Source: WinterGreen Research, Inc. As software and hardware needs changed, on-premise systems had to be updated or physically replaced, otherwise, new features were unavailable. Systems could fall into an unsupportable state. If you have a network of systems comprising unified communications strategy, businesses had to coordinate the upgrade across multiple sites and geographies. 8x8 Virtual Office seamlessly coordinates the upgrade across multiple sites and geographies. It works without disruption to service. That assures users have the latest features, it keeps IT focused. 3.10.1 8x8 Virtual Office Pre-Built CRM Integrations with Salesforce, NetSuite, and Zendesk 8x8 Virtual Office includes pre-built integrations with leading CRM solutions, Salesforce, NetSuite, and Zendesk. 8x8’s integrations bring information into every customer interaction. It works out-of-the-box without the need for professional services. 8x8 is able to provide more consistent and unified communications services than has been available from servers. 8x8 Virtual Office provides a single, all-in-one mobile/desktop application for accessing and managing all communications services: voice, IM and presence, peer-to-peer video, messaging, and audio, web, and video collaboration. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 107 www.wintergreenresearch.com/blog Email: [email protected]earch.com SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts There is only one app for users to install. It is easier for them to understand and use the services, easier and less costly to enable and support. Built in reliability, security, and compliance are available. 8x8 Virtual Office is third-party validated for compliance with industry and government standards including the Health Insurance Portability and Accountability Act (HIPAA), the U.S. Federal Information Security Management Act (FISMA), and the UK government Cyber Essentials controls. 8x8 has received a UK government Authority to Operate (ATO), one of the highest levels of security and compliance certifications. 8x8 has 12 redundant data centers around the world, a service level agreement offering 99.99% network uptime. Network uptime of 99.997% was available in 2016. 47,000 companies rely on 8x8 for their communications. . Businesses realize cost-savings. The cloud provides easy and seamless expansion with the addition of employees and locations. The capabilities eliminate lengthy implementations and costly hardware upgrades. The cloud is modern and cost effective for business communications. 3.11 Ericsson Multimedia Telephony Application Server Ericsson Multimedia Telephony Application Server is a high-performing carrier class application server. It is used for voice and multimedia applications providing cost efficient services for next generation mobile and fixed networks. It provides energy efficiency, capacity, scalability, reliability and foot-print by utilizing state of the art technology. The product supports all legacy telephony services as well as next generation services like multi-device applications, multi-media services over multiple accesses like COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 108 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts mobile 2G, 3G, 4G, Wi-Fi and fixed accesses. This makes an excellent start to replace legacy networks, introduce Voice over LTE as well as building an excellent foundation to offer a service evolution for next generation end user services. 3.11.1 Ericsson Consumer and Enterprise Communication Services Offering Ericsson Multimedia Telephony Application Server (MTAS) includes several application servers (AS) roles to support consumer as well as enterprise voice and multimedia services. The following AS roles are supported: Multimedia Telephony AS, MMTel AS, supporting both 3GPP compliant supplementary services as well as additional valuable services not yet defined by 3GPP. Also multi device services is natively supported as well as a northbound service API that enables an operator to build own value added services. This makes it an excellent AS to offer a service evolution to end users. Service Centralization and Continuity Application Server (SCC-AS) supporting IMS Centralized Services (ICS) as well service continuity for subscribers moving from VoLTE to 2G/3G coverage. SIP Trunking AS that makes it possible to interconnect PBX’s with a common numbering plan. MTAS can be deployed in combinations of the above AS-roles as well as standalone AS’s. The product can be deployed on traditional telecom optimized hardware as well as in virtualized deployments based upon 3rd party hypervisors and 3rd party HW, or OpenStack based Ericsson Cloud System, which gives smoother deployment and improved TCO. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 109 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 36. Ericsson Multimedia Telephony Application Server Main Values Sustain revenue with first-line Mobile communication A key enabler to roll out voice and video over LTE based on IR.92 and IR.94 specifications Mobile Telephony evolution becomes easy Long track record of VoLTE networks deployed in commercial service Fast launch and smooth evolution for IN services in VoLTE In order to speed up launch of VoLTE, MTAS has IN support to re-use relevant IN services from existing IN based service layers. MTAS also offers a northbound API enabling service evolution of new services as well as multimedia services that legacy IN protocols cannot support. Support for Wi-Fi Calling It has support for WiFi Calling already in commercial operation in several networks. The built in multi-device capability is also an excellent base to enhance this offerings further over time to support enhanced capabilities in this area from the device industry. Grow economically with superior scalability and reusable platform MTAS offers unique scalability making it suitable for both large and small networks. This scalability is already proven in several large installations serving both fixed and mobile networks. Deployments can be done both with native, dedicated telecom hardware as well as a virtualized network function (VNF) in cloud based deployment using any 3rd party based hardware. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 110 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Offer SIP trunking using same platform as MMTel MTAS supports SIP trunking to interconnect several PBX’s using the same numbering plan. This is an excellent way to bring in old legacy offerings into a future proof IMS solution. MTAS is also a key component in Ericsson Mobile Unified Communication offering making it easy to enable an attractive Enterprise offering. MTAS is purpose built for IMS and supports both legacy and future services MTAS supports high capacity, scalability & availability MTAS is fully proven in field (live operation since2010) for both fixed IMS (MMTel) and mobile (VoLTE and WiFi calling), including in multi-vendor networks Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 111 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 4.1 NFV An agile infrastructure is able to support network transformation. NFV implements agility via·scale. · Technology solutions are able to evplve flexibility using·softwre designed networks (SDN). Communications ecosystems have evolved support for NFV that is leading the future of 5G. NFV virtualization can be found on blueplanet.com Adwww.blueplanet.com/NFV Scalable vendor-agnostic management and orchestration of services. It is used for 5g mobile networks, · utilities Highlights:: Reduces The Complexity, Carrier-Grade NFV Orchestration Capabilities… Network functions virtualization (NFV) is a network architecture concept that uses the technologies of IT virtualization to virtualize entire classes of network node functions into building blocks that may connect, or chain together, to create communication services. Network functions virtualization (NFV) is an initiative to virtualize the network services that are now being carried out by proprietary, dedicated hardware. If successful, NFV will decrease the amount of proprietary hardware that's needed to launch and operate network services. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 112 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Network functions Virtualization (NFV) offers a new way to design, deploy and ... led them to applying standard IT virtualization technologies to their networks. Ensemble Delivers NFV. 4.1.1 NFV – Network Functions Virtualization - Cisco Cisco combines NFV with Open Source and SDN for an innovative and adaptable network. ... NFV is used with two complementary technology initiatives: ... Network functions virtualization - Ericsson Network Functions Virtualization - ETSI Network Funcons Virtualizaon (NFV) aims to address these problems by evolving ... technology to consolidate many network equipment types onto industry ... ETSI Network Functions Virtualisation Industry Specification Group, NFV ISG. Overview of NFV technology, status of ETSI NFV work, list of ETSI NFV standards ... 4.2 Scale: Cloud 2.0 Mega Data Center Containers Containers have real promise. The advantage of containers is scale. Until there is a Cloud 2.0 mega data center with 100,000 servers and 100,001 switchers operating at 40 GBPS, 100 GBPS, and 400 GBPS, there is not enough scale to make the point to point connections that provide complete application integration. Connecting one point to every other point in the data center depends on scale and that makes the point to point connection work. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 113 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Once the scale is in place, software is needed to manage the facility automatically. At this scale, humans do not know enough to keep the systems running. 4.2.1 Data Center Architectures Evolving Data centers are modular, reaching thousands of VMs over the host. Networks are shifting from the traditional three-tier model (top-of-rack/aggregation/core) to flattened (leaf/TOR-spine/core) topology. These changes imply a change in traffic from a north-south orientation to an east-west orientation and consequently, 75% of data center traffic is now east-west. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 114 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.1 8x8 8x8 competes with on-premises PBX and call center solutions. Avaya bankruptcy shows things have changed. Figure 37. 8x8 Cloud-Based Phone Systems and Contact Center Functions: Better features Reliability Availability at less cost Do not require expensive upgrades Do not require software updates Eliminate the need to buy, install and maintain on-site hardware Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 115 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 38. 8x8 Customers Source” 8x8 5.2 AT&T AT&T IP Flexible Reach is a Session Initiation Protocol (SIP) Voice over IP (VoIP) trunking service that integrates voice and data on a single network. This enables optimization of the network. Capacity and flexibility of existing PBX or key system investments are leveraged. SIP at AT&T provides the foundation for advanced communications services. 5.3 Avaya Avaya innovation leads business communication for the digital age. Avaya delivers smart global solutions and technologies. Customer and team engagement, unified communications, collaboration, contact center, customer experience, management, and networking are provided. Avaya services go to large enterprises, midmarket companies, small businesses, and government organizations around the world. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 116 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Avaya solutions bring the right information at the right time in the right context, helping to enable a higher level of engagement among customers, teams, employees and partners. The aim is to improve efficiency and quickly address critical business challenges. Avaya solutions are designed to be highly scalable, reliable, secure and flexible. Solutions help reduce costs and simplify management. They provide a platform for next-generation engagement and collaboration. They are available in a variety of deployment models: Figure 39. Avaya SIP PBX Solution Deployment Models Public Hybrid Private cloud Customer premise Source: Wintergreen Research, Inc. All Avaya solutions deployment models are supported by a portfolio of professional and support services. 5.3.1 Avaya Team Engagement Solutions Avaya is a global leader in team engagement solutions. Unified communications and collaboration technologies drive services configurations. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 117 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Avaya Team Engagement Solutions quickly and seamlessly bring together the right people, at the right time with the right information to deliver business results. Avaya team engagement solutions enable focus on the purpose of interactions instead of worrying about the mechanics. Avaya supports a workforce that is highly distributed, mobile, and seeks access to people and information through multiple channels and devices. Employees need to work with colleagues based in headquarters, regional centers, branch offices, and other remote locations. They need to work those within the enterprise ecosystem inclusive of supply chain, service providers, channels, and customers. Avaya team engagement solutions empower people to communicate and collaborate using any modality, independent of location, network, or device. The solutions run on an enterprise-class platform that is open, reliable, scalable, and secure. Avaya provides the platform and tools, within the Avaya engagement environment. These enable enterprise business analysts, developers and ISVs to rapidly create and deploy communication applications that are embedded into their business processes and applications. 5.3.2 Avaya Customer Engagement Solutions Avaya is a global leader in the contact center market. It offers highly reliable, intelligent and scalable solutions. Avaya is positioned to help businesses deliver a customer experience, build customer loyalty, reduce total cost of ownership, and compete effectively. Avaya helps organizations transform customer service to rich, sustainable customer relationships. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 118 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Transaction solutions help organizations understand customer unique needs and preferences, dynamically manage a customer experience. Avaya resources support facile interactions, helping achieve a high rate of resolution on contact. Avaya’s customer engagement solutions support multi-channel interactions, intelligent routing, self-service, and proactive communication. Figure 40. Avaya Transaction Solutions Functions Help organizations understand customer unique needs Elucidate customer preferences Dynamically manage a customer experience Resources support facile interactions Help achieve a high rate of resolution on contact Customer engagement solutions Multi-channel interactions Intelligent routing Self-service Proactive communication Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 119 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Extensive workforce optimization, analytics and reporting capabilities provide companies with actionable insights that can improve profitability and customer retention. Avaya customer engagement solutions enable businesses to transform the customer experience, an interaction at a time. Avaya seeks to leverage the strength of solutions and services to create value. Figure 41. Avaya Telecommunications Leadership Position Metrics 90% of Fortune 100 companies are Avaya customers Avaya has 5,419 patents and pending patent applications World's top 10 passenger airlines are running Avaya Solutions 300,000 customers worldwide Continues to operate Provides industry-leading solutions Helps businesses grow Source: Wintergreen Research, Inc. Avaya works closely with customers, rolling up sleeves, and becoming immersed and invested in their businesses, challenges, goals. Avaya creates innovative engagement solutions, in the cloud. By combining contact center, unified communications, and networking products and services, Avaya delivers effortless mobility, easy application development, and social channel mastery. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 120 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.3.3 Avaya Fabric Networking Avaya offers a fabric networking portfolio. It delivers a broad range of featurerich products and differentiated technologies that combine to form simple, effective, scalable, and business-orientated solutions. Wired and wireless, access and core, campus and data center, desktop and branch are all aspects of business communications. Avaya solutions emphasize management simplicity, network resiliency and optimal performance. The Avaya fabric networking architecture provides the framework for businesses to implement integrated next-generation solutions from a variety of complementary components. Avaya fabric networking solutions address mobility and BYOD, Edge-only and zero-touch configuration, and application optimization. Avaya solutions scale from the mid-market to large enterprise. Scaling is achieved with an operational consistency that reduces the plan, build, and run burden. 5.3.4 Avaya Services Avaya services organization is a comprehensive and robust suite of offers. Avaya consults, enables, supports, manages, optimizes and outsources client team engagement, customer engagement and networking solutions. Avaya’s services enable customers and partners to mitigate risk, reduce total cost of ownership and optimize solution performance based on customer unique business needs. Avaya Support Services are backed by experts in 28 support centers around the world, handling more than two million service requests annually in 16 languages in 42 countries. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 121 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The Avaya support website uses advanced technology and best practices. User design is used to deliver a comprehensive service experience. Avaya technology supports products and solutions. 85 percent of Avaya support customers use the website. 46,000 issue resolutions are found each month without agent assistance. Avaya experts resolve 83 percent of issues in less than one hour. Avaya has the ability to deliver web talk and web video to customers to enable communication with live agents in the way that works best for the customer. 5.3.5 Avaya Files for Chapter 11 Bankruptcy Avaya Inc filed for Chapter 11 bankruptcy to reduce its debt load of $6.3 billion. It has no interest in selling its call center business. The bankruptcy illustrates challenges Avaya faces as it transitions to software and services from hardware. Avaya had planned to sell its call center business but did not reach a deal with buyout firm Clayton, Dubilier & Rice LLC, which had been in the lead to acquire it for about $4 billion. Avaya now has a focus on its debt. The company is restructuring debt with creditors. The original goal was to have one in place before bankruptcy, but an agreement was not reached. An affiliate of Citigroup is providing a $725 million loan to fund its operations during the reorganization. Avaya uses the loan to reassure jittery vendors who had been shortening payment periods and reducing credit terms on fears about the company's financial health. Decisive action to addresses capital structure was taken by initiating a restructuring through chapter 11. Operations remain strong, and this path will provide enhanced flexibility to invest in innovation and growth. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 122 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Avaya has 27,000 outside application developers writing to platforms. In 2016 it released 16 major solutions spanning customer engagement, team engagement, and networking. Figure 42. Avaya Applications on Platform Avaya Oceana™ Solution for the best customer experience, each and every time. Avaya Equinox™ Experience for simple, contextual, user-defined communications. Avaya Breeze™ Platform for fast development of great communications apps. Avaya Vantage™ Device for one touch to voice, chat, apps. Source: Wintergreen Research, Inc. A measure of Avaya performance relates to mindfully building software and services solutions. Performance in customer environments is continuously measured. The positive impact of solutions on customer businesses requires commitment and diligence. On January 19, 2017 Avaya filed for bankruptcy protection under Chapter 11, however stated that its foreign operations would remain unaffected. In its petition, Avaya listed $5.5 billion in assets and $6.3 billion in debts. Avaya says bankruptcy is a step toward building a software and services company. Avaya needs to shed debt as its focus shifts away from hardware. Networking and collaboration remain a priority. It is positioned to be responsive to the COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 123 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts shift toward mobile phones and cloud-based tools for communication. In a tight market for enterprise network equipment, the company has been changing its focus. It plans to keep operating during the bankruptcy thanks to its cash from operations and US$725 million in financing. Avaya said its foreign affiliates are not included in the filing and will not be affected. The company plans to keep its contact center business, but is in talks to sell other assets. The Chapter 11 bankruptcy filing is intended to cut Avaya’s debt and interest expenses. The company reported $3.7 billion in in revenue for the year ended Sept. 30, 2016, down 9 percent from the previous year. It posted an operating loss of $262 million. 5.3.6 Avaya Revenue At Sept. 30 2016, Avaya owed its pensioners $1.7 billion. Avaya's revenue fell to $958 million in the fourth quarter ended on Sept. 30 from $1 billion a year earlier. For the fiscal year, the company posted a net loss of $750 million. Avaya's Private Equity owners Silver Lake Partners and TPG Capital are considering a sale of telecommunications equipment company Avaya that could value it at $6 billion and $10 billion, including debt. Goldman Sachs is helping Avaya evaluate expressions of interest that have been received relative to specific assets, as well as in exploring other potential strategic opportunities. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 124 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Avaya is positioning to address software-defined networking, IoT, and cloudbased platforms that work on many different devices and the web. An all-in-one collaboration platform called Avaya Equinox can carry voice and video calls, text messaging, web collaboration and streaming of events. Equinox can run on mobile clients, PCs, and Avaya’s Vantage, a desktop device that’s like a phone but with a large touchscreen for running applications. The company has a SDK (software development kit) for integrating Equinox into productivity applications. The demand for UC hardware has fallen in favor of software and cloud-based services. Avaya seeks to address the opportunities inherent in providing communication via cloud infrastructure. Avaya has struggled to keep up with unified communications competitors, such as Cisco and Microsoft, especially as services become more cloud-oriented. The Avaya bankruptcy filing and restructuring gives the vendor a chance to create true cloud services. If an organization wants to buy a cloud service from Avaya, that organization has to build its own cloud or buy one from an Avaya partner. Partners do not make money selling cloud services like they do selling hardware. Partners and legacy vendors are losing business to cloud providers. They have to accelerate growth to make up for the loss of the core PBX, telephony business. Avaya's communications platform as a service, Zang, is a pure cloud offering. Zang's roadmap is aggressive and positions it against cloud UC vendors, such as RingCentral and 8x8, it has yet to prove itself in the market. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 125 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Network security is a top priority for IT leaders. Avaya has not provided the level of security that organizations need. This drives customers to Avaya competitors. Avaya is repositioning to address networking from a user perspective, Wi-Fi is more strategic and important than a wired network. Avaya is behind the competition in this repositioning. Avaya could expand its enterprise wireless services. Avaya has an OEM partnership with Xirrus for its Wi-Fi services. Avaya restructuring needs to expand its wireless business by building its own or buying a Wi-Fi network. Wi-Fi is more strategic and important than a wired network. Avaya has had some success reinventing itself as a CPaaS provider with Zang and Breeze, an API development platform. Avaya customers use the Breeze platform to build custom apps or integrations into their business processes. Avaya cloud platform aims to ease network management. Avaya looks to bridge on-premises contact center to the cloud. AI and messaging are significant aspects of unified communications trends. The enterprise desktop phone simply is not used as much anymore. Employees are traveling, moving from one workplace to another and using mobile devices for all communications. Younger employees do not use voice communications anymore; messaging is the choice and has been for several years. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 126 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 43. Avaya Target Markets Businesses by Size < 100 Employees 100-2,499 Employees 2,500+ Employees Source: Wintergreen Research, Inc. Figure 44. Figure 22. Avaya Target Markets Businesses by Industry Banking Insurance Healthcare Providers Higher Education Hotels and Lodging K-12 Education U.S. Government Solutions Federal Civilian Government Defense and Military State and Local Government Source: Wintergreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 127 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Your customers, employees and partners need a communications experience that fits into how they work instead of changing how they work. Avaya is redefining unified communications to be your natural, convenient way to engage, respond, and share. We put UC in the applications, browsers, and devices that people use every day. With the Avaya Equinox™ Experience, communication just got simple, transparent, in context, and user defined. 5.4 Brekeke Software Brekeke Software is based in San Mateo, California. Its core business is in the IP-PBX and SIP server software market. With an open standard approach the firm devises solutions for businesses and individual use. Its products include Brekeke PBX, Brekeke SIP Server 2.0 and Brekeke JTAPI SDK. These products are compatible with many IP phones, gateways, and service providers. Brekeke PBX is a complete IP-PBX system based on a web interface. It can be used by any organization of any size. Major benefits from the product are support for industry standard protocol – SIP, Advanced Intuitive Browser-based Management System, Sophisticated PBX functionality, scalability, compatibility, and ability to be customized. Brekeke is a growing leader in the SIP communications platform market. Brekeke offers SIP communications software that enables IP-based communications for businesses of all sizes. Brekeke offers Brekeke PBX, Brekeke SIP Server, Brekeke JTAPI SDK, and Brekeke PBX Active Library (PAL) for .NET developers. Design architecture provides feature rich, user-friendly products, and simple installation. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 128 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.5 Broadsoft BroadSoft, Inc. (NASDAQ: BSFT), a leading global provider of hosted cloudbased enterprise communications software and services to the telecommunications industry. BroadSoft charges for every user on the system. They add additional charges to enable features of conferencing, call recording. For the quarter ended September 30, 2016 include total revenue that increased 22% year-over-year to $84.1 million. Highlights for the second quarter of 2016, total revenue increased 27% year-over-year to $81.7 million Service provider customers around the world are launching and promoting truly converged fixed and mobile unified communications services. Some of these are based on BroadSoft solutions. This is a great validation of our products and vision. We will continue to innovate to remain the industry leader as the business communications market continues to evolve." COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 129 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.6 BT / Avaya IP PBX Cloud Figure 45. Avaya Cloud Options Enterprise Cloud Managed Services Cloud Solutions Delivered by BT Wholesale Cloud Experience Built for Mobile Users Avaya Equinox™ Experience Communication that is simple, transparent, in context, and user defined Source: WinterGreen Research, Inc. 5.7 Ciena / BluePlanet Ciena’s Blue Planet division was created to ignite a network transformation by enabling true end-to-end service orchestration. And as a team, we are on a mission to deliver. The Blue Planet division is dedicated to preserving the open, multi-vendor focus that made Blue Planet the most-recognized and celebrated SDN and NFV software suite in the industry trusted, not just by customers, but by the vendor community at large. Disruptive software, collaborative approach, and earnest desire to change an industry, not a just single network, has earned the team some of the highest honors in this market space. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 130 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Ciena has always been an extremely focused, thought leader and trusted advisor to customers. With Blue Planet, we have taken the same, focused approach to helping customers automate services - from creation to orchestration to delivery – across both physical and virtual domains. Our software reduces operational costs by abstracting network complexity creating space for innovation and differentiation through a level of service programmability that was previously unachievable. 5.7.1 Ciena Opensource And Standards Affiliations The Blue Planet software is based on over 15 open source components. Blue Planet engineers are constantly looking for additional components that can meaningfully add or enhance the software’s functionality. The team is active in both industry standards-bodies and the Opensource community. affiliations include: Onos. 5.7.2 Ciena Open Network Operating System (Onos) Open Network Operating System ONOS is the open source SDN networking operating system for Service Provider networks architected for high performance, scale, and availability. ONOS' ecosystem comprises of ON.Lab and organizations that are funding and contributing to the ONOS initiative. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 131 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.7.3 Ciena Metro Ethernet Forum The Metro Ethernet Forum MEF is an industry consortium of more than 150 members dedicated to developing technical specifications and implementation agreements to accelerate adoption of Carrier Ethernet. 5.7.4 Ciena Open Compute Project Ciena has been a community member of the Open Compute Project (OCP) since June of 2014. OCP’s mission is to apply the benefits of open source software to hardware and rapidly increase the pace of innovation to hardware design and engineering in, near, or around data center technologies. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 132 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.7.5 Ciena OpenDaylight OpenDaylight facilitates a community-led, industry-supported open source framework, including code and architecture, to accelerate and advance a common, robust Software-Defined Networking platform. 5.7.6 Ciena Open Networking Foundation The Open Networking Foundation (ONF) is a nonprofit organization committed to bringing programmability to networks and accelerating the delivery and use of SoftwareDefined Networking (SDN) standards. 5.7.7 Ciena Internet Engineering Task Force The mission of the IETF is to make the Internet work better by producing high quality, relevant technical documents that influence the way people design, use, and manage the Internet. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 133 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.7.8 Ciena European Telecommunications Standards Institute ETSI produces globally-applicable standards for Information and Communications Technologies (ICT), including fixed, mobile, radio, converged, aeronautical, broadcast, and internet technologies and is officially recognized by the European Union as a European Standards Organization. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 134 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 46. Ciena OSS from BluePlanet Source: Ciena. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 135 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Source: Ciena. 5.7.9 Centurylink And Blue Planet: Orchestration Of NFV- Based Services With NG-OSS CenturyLink announced that the company will leverage Cyan’s Blue Planet to orchestrate the delivery of NFV-enhanced services to their enterprise and small and midsized business (SMB) customers. Specifically, Blue Planet will be integrated with CenturyLink’s Programmable Services Backbone (PSB), providing the ability to orchestrate VNFs from multiple vendors and bridge multiple technologies to rapidly deploy new services across the company’s footprint. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 136 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.7.10 Telefónica, Blue Planet, Brocade, Intel, And Red Hat: Orchestrating Vrouter Vnf With Deterministic Performance Telefonica collaborated with Brocade, Cyan, Intel, and Red Hat to demonstrate an advanced and multi-vendor implementation of the ETSI ISG NFV architecture capable of intelligently orchestrating resources to ensure predictable performance for telco-grade network functions. This was called Enhanced Platform Awareness (EPA). The EPA demo utilized Cyan’s Blue Planet as the intelligent NFV service orchestrator, the Brocade Vyatta 5600 vRouter as the VNF, and Telefónica’s custom VIM, all running on hardware infrastructure utilizing Intel processors. Building upon the Deterministic NFV Collaboration with Telefonica and Red Hat announced in 2014, the demo showcased the deterministic allocation of CPU, memory, I/O, and storage resources in real-time to deliver carrier-grade performance for a particular type of VNF. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 137 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 138 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.7.11 Centurylink, Blue Planet 5.7.12 Ciena Blue Planet SDN and NFV Orchestration Platforms For Network Operators Ciena Blue Planet is one of the industry’s first and most widely deployed SDN and NFV orchestration platforms for network operators, Blue Planet has engaged with Blue Orbit partners in a number of publicly announced production network deployments, COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 139 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts trials, and PoCs with leading network operators. This includes multiple use cases that demonstrate real-world implementation of NFV and SDN, ranging from multi-vendor Ethernet service automation to deterministic NFV. 5.7.13 Ciena Blue Planet Container-Based Micro-Services Architecture Web-scale software for simplified operations and rapid feature adoption Disruptive micro-service architecture As more applications are being deployed in the cloud, the limitations of older, monolithic software applications are becoming more apparent. Changes made to a small part of the application require the entire monolith to be rebuilt and re-deployed. Scaling equates to scaling of the entire application rather than just the components that require more resources. As a result, changes and improvements are made at a glacial pace, new features are adopted slowly, and integration with third-party integration systems is difficult. In addition, the increasing CAPEX and OPEX required to operate and upgrade these platforms is becoming a material burden on the balance sheet. The micro-services architecture was developed to address these challenges. In a micro-services architecture, an application is built using a combination of loosely coupled and service-specific software containers that communicate using APIs, instead of using a single, tightly coupled monolith of code. This development methodology makes an application easier to enhance, maintain, and scale, making it prevalent in cloud environments. Ciena’s Blue Planet is built upon a container-based micro-services architecture. Unlike the SDN and NFV solutions from large incumbent suppliers that package multiple monolithic software applications focused on individual technology domains, Blue Planet COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 140 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts provides a vendor-agnostic and programmable software platform that is highly customizable for the network operator. Beyond SDN management and control (full FCAPS) for Ciena’s packet and packet-optical networking products, Blue Planet can be tailored to support use cases ranging from NFV service orchestration to multi-vendor automation, and/or multi-domain service orchestration. 5.7.14 Ciena Blue Planet Container Based Architecture Figure 47. Benefits of Blue Planet's Container-Based Micro-Service Architecture One platform, multiple use cases: Users can easily customize and tailor the platform by choosing the best software to accomplish a particular task, benefiting from best-of-breed solutions by utilizing the latest technologies or third-party solutions. Resilience: With Blue Planet’s architecture, if one component of a system fails, it will not bring down the whole platform or affect the service being delivered. Web-scale: As the demand on the platform increases, rather than scaling all the components, scaling can be focused on the problematic micro-services that need to grow with more resource allocation. The result is frugal use of existing resources, lowering OPEX and improving ROI. Agility and ease of deployment: Since each service is decoupled, services can be upgraded and new features can be added and deployed independently of the rest of the platform, with no downtime or interruption in the overall business. Modularity: The cost of replacing a service is much cheaper in a micro-servicesbased architecture. As long as each service adheres to the API convention, the service can be evolved or entirely replaced with much less technical and business risk. That COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 141 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts also includes our customers' ability to add their own microservices to the platform when they are looking for technology differentiation. Micro-Services: Agility based on simple architecture Source: WinterGreen Research, Inc. A container-based micro-services architecture provides a complete departure from monolithic software systems, creating a number of opportunities. Benefits translate to transformative service agility, reduced OPEX, and lower professional services fees typically associated with monolithic software design. Figure 48. Ciena Blue Planet Component Micro Services: SDN, NFV, and Multi Domain Source: Ciena COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 142 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.8 Cisco Systems Cisco designs and sells broad lines of products. It provides services and delivers integrated solutions to develop and connect networks. Cisco helps customers build networks and automate, orchestrate, integrate, and digitize information technology (IT). Digital based products and services are offered. In an increasingly connected world, Cisco is helping to transform businesses, governments and cities worldwide. 5.8.1 Cisco Business Cisco has expanded to new markets that are a natural extension of the core networking business. As the network has become the platform for delivering an everincreasing portfolio of IT–based products and services cisco has had remarkable market growth. Cisco conducts business globally. It manages the business by geography. The geographic segments: Americas; Europe, Middle East, and Africa (EMEA); and Asia Pacific, Japan, and China (APJC) are well defined. Products and technologies are grouped into the categories: Switching; NextGeneration Network (NGN) Routing; Collaboration; Data Center; Wireless; Service Provider Video; Security; and Other Products. Cisco provides a range of service offerings, including technical support services and advanced services. It is delivering technology and services to customers as solutions. Solution priorities include cloud, video, mobility, security, collaboration, and analytics. The network is at the center of these markets and technologies. Cisco is focused on delivering integrated solutions to help customers achieve business outcomes. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 143 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco customers include businesses of all sizes, public institutions, governments and service providers. These customers use Cisco as a strategic partner. Cisco is able to help use IT to enable, differentiate or fundamentally define their business strategy and drive growth, improve productivity, reduce costs, mitigate risk, and gain a competitive advantage. 5.8.2 Cisco Strategy and Focus Areas In an increasingly digital world, the network becomes all consuming. Cisco customers increasingly use technology and, specifically, networks to grow their businesses, drive efficiencies, and try to gain a competitive advantage. In this increasingly digital world, data is the most strategic asset. It is increasingly distributed across every organization and ecosystem. Data is managed on customer premises, at the edge of the network, and in the cloud. The network plays an increasingly important role enabling customers to aggregate, automate, and draw insights from highly distributed data. There is a premium on security and speed. This is driving them to adopt entirely new IT architecture and organizational structure. Cisco has a deep understanding of how technology can deliver outcomes. The strategy is to lead customers in their digital transition with solutions including pervasive, industry-leading security that intelligently connects nearly everything that can be digitally connected. To deliver on strategy, Cisco is focused on providing highly secure, automated and intelligent solutions. Solutions build on infrastructure that connects highly distributed data, globally dispersed, and spread across different organizations. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 144 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco has an ecosystem of partners and developers. Cisco solutions enable gaining insight and advantage from distributed data. Cisco systems scale, Transforming the Business offer security, and agility. As a part of this transformation, Cisco continues Cisco has been to make changes to organization, selling, and delivery of transforming the technology. It is aggressively transitioning the portfolio business to move from to enable delivery of on premise and through the cloud. selling individual In alignment with a strategy to shift to a business model based on more recurring revenue, detailed planning to expand cloud-networking platforms has been undertaken. An increasing portion of product and products and services to selling products and services integrated into architectures and solutions. service portfolio accelerates a shift to a more subscription and software-based model. The Cisco approach is to continue to lead the market transitions in core markets, and enter new markets where the network is foundational. Cisco continues to drive product transitions, including the introduction of next-generation products that offer better price-performance and architectural advantages. Innovation across the portfolio seeks to sustain leadership. Strategic position is enhanced through portfolio transformation, internal innovation, acquisition of strategic assets, investments in start-up companies, and co-development of products with customers. Cisco is good at building of strategic partnerships. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 145 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.8.3 Cisco Leverages Market Transitions Cisco seeks to capitalize on market transitions to digitation of everything to address capture of sources of future opportunities. As part of continued transformation of the business Cisco seeks to leverage market transitions occurring in the IT industry. Market transitions are occurring with greater frequency. Market transitions relating to the network are becoming increasingly significant as intelligent networks move from being a cost center issue to becoming the core of the IT processing. The network is at the core of every new data center. The focus is on reducing network operating costs and increasing network-related productivity, in the context of creating a platform for revenue generation, business agility, and competitive advantage. Significant market transitions are related to security. Security is the top IT priority for IT. In an evolving dynamic threat landscape, Cisco has been able to address security challenges with continuous threat protection. Protection needs to be pervasive and integrated. Security solutions help protect the digital economy. Security is an enabler that safeguards business interests, protects customers, and creates competitive advantage. Cisco security strategy is focused on delivering a unified threat-centric security architecture combining network-based, cloud-based and endpoint-based solutions, providing customers more effective security outcomes and a secure foundation to digitize assets. Cisco has invested in security through a build, buy, and partner strategy to provide security across the entire attack continuum before, during, and after a cyber attack. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 146 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.8.4 Cisco Addresses Digital Transformation Countries, cities, industries and businesses are pursuing "digital transformation". This represents the application of technology to building new business models, processes, software and systems. The aim is to capitalize on digital ways of doing business. Digital transformation is made possible by the convergence of people, businesses and things. These types of transformations create opportunities to deliver better customer experiences, create new revenue streams through business model transformation, and optimize efficiency through workforce innovation. As digital businesses is adopted, Cisco seeks to be a strategic partner by providing a technology foundation for digital transformation. Offerings for this opportunity incorporate a portfolio of products and services, outcome-oriented digital solutions, a developer-rich environment and a partner ecosystem that integrate connectivity, security, automation, collaboration and analytics across customers' business value-chains. The architectural approach and solution-based results help customers reduce complexity, accelerate and grow, and manage risk. Virtualization, application-centric, cloud-based, analytics-driven, and mobile solution platforms are offered. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 147 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 49. Cisco Technology Foundation For Digital Transformation Architectural approach Solution-based results Help customers reduce complexity Help customers accelerate and grow Help customers manage risk Virtualization Application-centric Cloud-based Analytics-driven Mobile solution platforms Source: Wintergreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 148 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco fiscal 2016 acquisition of Jasper Technologies, a developer of a cloudbased Internet of Things (IoT) services platform, positions Cisco in the IoT markets. IoT is designed to help enterprises and service providers launch, manage and monetize IoT services on a global scale. 5.8.5 Cisco Software-Defined Networking Cisco is focusing on a market transition. Cisco move toward programmable, flexible, and virtual networks brings risk of execution. Software-defined networking (SDN) transition is focused on providing a virtualized network environment. A virtual network enables flexible, application-driven customization of infrastructure. SDN solutions combine application-specific integrated circuits (ASICs) with software elements to reduce total cost of ownership, quality, security, scalability, and experience requirements. There is no single architecture that supports all customer requirements in this area. SDN enables open, and programmable network infrastructure. Cisco strategy is to design a set of solutions able to respond automatically to the needs of customer mission critical applications. Application Centric Infrastructure (ACI) delivers centralized application-driven policy automation, management, and visibility of both physical and virtual environments as a single system. ACI is comprised of Nexus 9000 portfolio of switches, enhanced versions of NXOS operating system, and the Application Policy Infrastructure Controller (APIC). APIC provides a central place to configure, automate, and manage an entire network, based on the needs of applications. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 149 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.8.6 Cisco Cloud Strategy Cisco cloud strategy connects private and public clouds. Working across hypervisors, software programs create and manage virtual environments. OpenStack open source computing platform delivers integrated hybrid-cloud solutions. Cisco supports secure cloud infrastructures. To make a cloud secure, it is necessary to support a rich ecosystem of network-enabled applications. To deliver data and analytics to implement the digitization of business, data center environments are evolving a clos architecture. As part of cloud strategy, Cisco is delivering infrastructure. Cloud-based software-as-a-service (SaaS) offerings include WebEx, Meraki cloud networking, and security and collaboration offerings. Cisco approach to the cloud is differentiated and unique. Cisco solution is tuned to address different cloud environments including private, hybrid, and public clouds. Cisco cloud solution enables the enterprise to move workloads across heterogeneous private and public clouds with the necessary policy, security and management features. This strategy depends on the development of new products and enhancements to existing products. The aim is to respond effectively to emerging technological trends and customer changing needs. 5.8.7 Cisco Switching Switching is an integral networking technology used in campuses, branch offices, and data centers. Switches are used within buildings in local-area networks (LANs), COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 150 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts and across great distances in wide-area networks (WANs). Cisco switching products offer many forms of connectivity to end users, workstations, IP phones, wireless access points, and servers. They function as aggregators on LANs and WANs. Cisco switching systems employ widely used technologies, Ethernet, Power over Ethernet (PoE), Fibre Channel over Ethernet (FCoE), Packet over Synchronous Optical Network, and Multiprotocol Label Switching. Many switches are designed to support an integrated set of advanced services, allowing organizations to be more efficient by using one switch for multiple networking functions rather than multiple switches to accomplish the same functions. Fixed-configuration switches are designed to cover a range of deployments in both large enterprises as well as in small and medium-sized businesses, providing a foundation for converged data, voice, and video services. Fixed-configuration switches range from small, standalone switches to stackable models that function as a single, scalable switching unit. Modular switches are typically used by enterprise and service provider customers with large-scale network needs. These products are designed to offer customers the flexibility and scalability to deploy numerous, advanced, networking services without degrading overall network performance. Fixed-configuration and modular switches include products such as optics modules, which are shared across multiple product platforms. The switching portfolio includes virtual switches. These products provide switching functionality for virtual machines, and are designed to operate in a complementary fashion with virtual services to optimize security and application behavior. The application centric infrastructure (ACI) solution is part of the data center switching portfolio. Cisco ACI consists of the Cisco Nexus 9000 Series Switches, a COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 151 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco APIC and accompanying centralized policy management capability, integrated physical and virtual infrastructure, and an open ecosystem of network, storage, management, and orchestration vendors. During fiscal 2016, strong adoption of Cisco ACI occurred across geographies and customer segments. Cisco plans to integrate new technologies with the Cisco ACI solution. Cisco CloudCenter platform is a technology obtained through the acquisition of CliQr Technologies. It is an application-defined platform that works with the Cisco ACI networking solution to provide an infrastructure agnostic way to streamline the modeling, migration, and management of applications across IT resources. Tetration analytics platform delivers real-time visibility across the data center using hardware, and software sensors to provide behavior-based application insight with deep forensic-based analysis. Multi-gigabit-capable technology is implemented on Cisco Catalyst 4500-E, 3850 and 3560-CX switches. Cisco Catalyst multigigabit technology can deliver speeds beyond one Gigabit on the existing Category 5e cable delivery. Utilizing capabilities in customer existing cabling infrastructure meets their bandwidth requirements. Multi-gigabit technology enables intermediate data rates of 2.5 and 5 gigabitsper-second (Gbps) to ease the jump between traditional rates of one Gbps and ten Gbps. The technology supports Cisco’s power-over-ethernet capabilities known as PoE+, and Cisco Universal PoE (UPOE). PoE is a technology for wired ethernet local area networks (LANs) that allows the electrical current necessary for the operation of each device to be carried by the data cables rather than by power cords. This minimizes the number of wires that must be installed with the network, lowering cost and downtime. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 152 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco’s Unified Access architecture based on the Unified Access Data Plane ASIC, was first made available on the Cisco Catalyst 3850 and then added to the Cisco Catalyst 4500-E and the Cisco Catalyst 3650. The Unified Access platform has been adopted across all geographies and customer segments. 5.8.8 Cisco Spark Cisco includes revenue from WebEx within the collaboration product category. Cisco Spark was expanded to become a platform for messaging, meeting and calling from the cloud. Cisco acquired Acano bringing increased scalability and enhanced interoperability to on-premises video conferencing. Cisco has partnering arrangements with Apple and IBM. 5.8.9 Cisco Data Center The Cisco Unified Computing System (UCS) combines computing, networking and storage infrastructure with management and virtualization. This combination enhances speed, simplicity and scale. Cisco architecture provides pools of policydriven infrastructure. Customers can optimize traditional workloads, data analytics, and cloud-native applications. A common operating environment comes with an open application program interface (API) for broad interoperability and automation. Data center product innovations accelerate consolidation of physical and virtualized workloads. Systems can be customized to take into account the customer application requirements. Workloads move onto a single scalable, centrally managed, and automated system. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 153 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco offers a portfolio of solutions designed to preserve customer choice, accelerate business initiatives, reduce risk, lower the cost of IT, and represent a comprehensive solution when deployed. Cisco UCS C3260, storage optimized server, brings the UCS products' architectural advantages to parallel workloads, including cloud and web-scale applications. Figure 50. Cisco Unified Computing System Portfolio Of Solutions Functions Preserve customer choice Accelerate business initiatives Reduce risk Lower the cost of IT Represent a comprehensive solution when deployed Storage optimized server Brings the UCS product architectural advantages to parallel workloads Cloud applications Web-scale applications Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 154 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.8.10 Cisco UCS Mini Edge Of The Network Soolution At the edge of the network, Cisco UCS Mini is an all-in-one solution optimized for branch and remote office, point-of-scale endpoint locations, and smaller IT environments. Cisco data center infrastructure management and automation software works within UCS Manager and UCS Director products. Cisco UCS portfolio has next generation hyper-converged infrastructure. Cisco HyperFlex systems solution represents combining software defined storage, and data services software with Cisco UCS. Cisco ONE Enterprise Cloud Suite solution enables private and hybrid clouds. Wireless products provide indoor and outdoor coverage with seamless roaming for voice, video, and data applications. They include wireless access points; standalone, controller-based, switch-converged, and cloud-managed technologies; and network managed services. These products deliver an optimized user experience over Wi-Fi and leverage the intelligence of the network. The wireless solutions portfolio is enhanced with security and location-based services. Connected mobile experiences (CMX) and Cisco Enterprise Mobility Services platforms provide users with simplified management. Mobile device troubleshooting features are designed to reduce operational cost, and maximize flexibility and reliability. Cisco is investing in development with merchant off the shelf silicon, and customized chipsets. Innovative product functionality is available to the Wi-Fi market. High Density Experience (HDX) suite of solutions improve battery life on mobile devices, implement video optimization, and achieve flexible radio architecture. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 155 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.8.11 Cisco Competition Cisco competes in the networking and communications equipment markets. Products and services are used for transporting data, voice, and video traffic across intranets, extranets, and the Internet. These markets are characterized by rapid change, converging technologies, and a migration to networking and communications solutions that offer relative advantages. Market factors represent both an opportunity, and a competitive threat to Cisco. . Price-focused competition from competitors in Asia, especially China are part of the market. Competitors include Amazon Web Services LLC; Arista Networks, Inc.; ARRIS Group, Inc.; Avaya Inc.; Blue Jeans Networks, Brocade Communications Systems, Inc.; Check Point Software Technologies Ltd.; Citrix Systems, Inc.; Dell Inc.; Extreme Networks, Inc.; F5 Networks, Inc.; FireEye, Inc.; Fortinet, Inc.; Hewlett-Packard Enterprise Company; Huawei Technologies Co., Ltd.; International Business Machines Corporation; Juniper Networks, Inc.; Lenovo Group Limited; Microsoft Corporation; Nokia Corporation; Palo Alto Networks, Inc.; Polycom, Inc.; Riverbed Technology, Inc.; Symantec Corporation; Ubiquiti Networks and VMware. The enterprise data center is undergoing a fundamental transformation arising from the convergence of technologies, including computing, networking, storage, and software. Previously these were segregated within the data center. The availability of highly scalable and general purpose microprocessors, application-specific integrated circuits offering advanced services, standards-based protocols, cloud computing, and virtualization, have brought a convergence of technologies within the enterprise data center. End-to-end technology solutions are evolving for the enterprise data center. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 156 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Data center and wireless products grew 5% and 3% in 2016. Offsetting these increases was a 4% product revenue decrease in NGN Routing category, driven primarily by a decrease in sales of high-end router products. Sales of switching products were flat due to higher sales of data center switches, flat sales of switches used in campus environments (which comprises the majority of this product category), and lower sales of storage products. Flat sales of switches used in campus environments was driven by uncertainty in the macro environment. This led to a slowdown in customer spending. A challenging environment with significant volatility and a highly competitive landscape characterizes the market in which Cisco competes. The network plays an increasingly important role enabling customers to aggregate, automate, and draw insights from highly distributed data, where there is a premium on security and speed. This is driving the adoption of entirely new IT architectures and organizational structures. Technology can deliver the outcomes customers need to achieve. Cisco strategy is to lead customers in their digital transition with solutions that implement pervasive, industry-leading security. The aim is to intelligently connect nearly everything that can be digitally connected. To deliver on strategy, Cisco is focused on providing highly secure, automated and intelligent solutions. These are built on infrastructure that connects highly distributed data that is globally dispersed across organizations. Together with an ecosystem of partners and developers, Cisco is able to provide technology, services, and solutions. The aim is to enable customers to gain insight and advantage from the distributed data with scale, security and agility. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 157 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.8.12 Cisco Revenue Cisco Revenue by Segment (In Millions of Dollars) Year Ended December 31, Products Services Total Source: Cisco company reports 2014YET 36,865.0 11,218.0 48,083.0 2015YET 38,064.0 11,525.0 49,589.0 2014YET 30,391.0 12,838.0 7,586.0 48,083.0 2015YET 29,757.0 12,411.0 7,421.0 49,589.0 2015Q3 9,844.0 2,838.0 12,682.0 2016Q3 9,302.0 3,050.0 12,352.0 Cisco Revenue by Regional Segment (In Millions of Dollars) Year Ended December 31, United States and Canada Europe Middle East Africa Asia Pacific Markets Total Source: Cisco company reports Cisco Revenue by Segment (In Millions of Dollars) Quarter Ended September 30, Products Services Total Source: Cisco company reports COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 158 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Cisco Revenue by Regional Segment (In Millions of Dollars) Quarter Ended September 30, 2015Q3 7,792.0 3,094.0 1,796.0 12,682.0 United States and Canada Europe Middle East Africa Asia Pacific Markets Total Source: Cisco company reports 2016Q3 7,443.0 3,013.0 1,896.0 12,352.0 Cisco Global Units Analysis Quarter 3 2016 Cisco IP Phones (Units) Desktop phones 2,675,941 1,414,258 Conference phones 33,988 Wireless phones 28,729 Softphones Video Phones Analog Station Ports 1,086,681 112,285 207,306 Cisco U.S. Units Analysis Quarter 3 2016 Cisco IP Phones (Units) Desktop phones 1,720,528 689,939 Conference phones COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 20,532 159 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Wireless phones Softphones 32,585 910,448 Video Phones Analog Station Ports 67,024 129,187 Cisco Global Unified Messaging (seats) 942,375 Enterprise & SMB Voice Gateway DS0s Global 1,766,051 US 1,030,913 5.9 Equinix / Avaya Cloud SIP Communications Figure 51. Avaya Cloud Options Enterprise Cloud Managed Services Cloud Solutions Delivered by BT Wholesale Cloud Experience Built for Mobile Users Avaya Equinox™ Experience Communication that is simple, transparent, in context, and user defined Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 160 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.10 Ericsson The application note describes the necessary steps and configurations for connectivity between an Ericsson (Aastra) MD110 (MX-One) Version 3.2 SP1 and a Cisco Unified Communications Manager (CUCM) 7.0 with SIP trunks. The network topology supports end-to-end interoperability between Cisco Unified Communications Manager and the Aastra MX-One (Ericsson MD110) PBX using SIP trunks via IP connectivity. Features are basic call, 3-way (ad-hoc) conference, call transfer (attended and unattended), call forward (all, busy and no answer), hold/resume, and DTMF internetworking. Cisco 3825 voice gateway can be used as the DSP farm point (MTP, Conference bridge). Cisco voice gateways can be used and the decision to choose what Cisco gateway model to use is left to the customer. The customer should choose a Cisco IOS gateway model based on the capabilities and the capacity that will be required based on the planned network deployment. 5.10.1 Ericsson Revenue SEK b. Net sales Of which Networks Of which Global Services Of which Support Solutions Of which Modems Gross i Q4 2016 65.2 32.4 29.4 3.4 — Q4 2015 73.6 37.3 30.7 5.6 — COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts YoY change -11% -13% -4% -39% — Q3 2016 51.1 23.3 24.8 2.9 — QoQ change 28% 39% 19% 16% — Full year 2016 Full year 2015 222.6 108.3 101.7 12.5 — 246.9 123.7 108.0 15.0 0.1 161 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.11 Fonality Fonality provides mobility functionality. The cost is $29.95 per user. Onpremises PBX with the cloud hybrid solution starts up with an on-premises system anchored by onsite hardware. A powerful cloud-based unified communications (UC) and administration tools are provided. Fonality is a hosted VoIP. Fonality can work for telecom for a 12-person sales floor. Fonality provides call routing and distribution options to evenly distribute calls among 3-12 agents working at any time. Fonality targets small to medium businesses. Fonality offers a call routing feature set within the control panel. Phones route through a dedicated internet line, in this manner, computer traffic does not affect the voice quality. Bring your own telecom (BYOT). Kick upfront capital costs to the curb and only pay low flat monthly rates. Provide all employees the same great experience, regardless of location. Figure 52. Fonality Flexibility of Hosted Available software updates COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 162 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Anytime, anywhere access Seamless scalability Configuration backups Moves, Adds, Changes in minutes Source: Fonality Figure 53. Fonality Benefits of Premise Investment protection IP PBX on-site Auto PSTN Failover Source: Fonality. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 163 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.12 Huawei Huawei Technologies is a Chinese multinational networking, telecommunications equipment and services company. It is the largest telecommunications equipment manufacturer in the world. 5.12.1 Huawei 2016 Business Carriers are embracing a digital transformation. End users are demanding digital services that deliver a real-time, on-demand, all-online, DIY, and social experience. The Carrier's ICT Network 2020 transformation is in the areas of network, architecture, operations, and services. In order to help customers begin the digital transformation Huawei works with leading global carriers. It has 36 innovation centers and has commercially deployed over 70 NFV and SDN projects around the world. Huawei expects to support 6.7 billion mobile broadband connections to provide a better service experience, and support a 1 Gbit/s access rate. It expects to support 1 billion cellular IoT connections and enable ubiquitous networks to connect everything. Achieving these goals requires innovation in technology and business models, as well as cross-industry collaboration. Huawei has a focus on spectrums, air interfaces, network architecture, integrated base stations, and user experience-based operations. Huawei is entering the Gigaband era. 4K video and cloud services boost user demand for ultra-broadband, which is accelerating many countries' economic development. Gigaband development strategy works in terms of bandwidth, coverage, and experience. Huawei expects to upgrade COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 164 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts broadband networks from 100 Mbit/s to 1,000 Mbit/s by continuously innovating access technologies. For coverage, Huawei strives to cover 90% of households with broadband networks by 2020. It has adopted the U-vMOS system to quantify video experience indicators and form a unified video experience standard, in order to help carriers change their network construction and operations model into one that is driven by user experience. The BDII guiding principle fuels innovation For the enterprise market: Huawei is building Business-Driven ICT Infrastructure (BDII). It continues to focus on developing ICT infrastructure with open architecture through joint innovation with partners. This has allowed industry users to have innovative, differentiated, and leading products and solutions. 5.12.2 Huawei Smart Devices Smart devices will become smarter and more diverse. Huawei is developing future-oriented capabilities focused on consumer needs under all scenarios, including the way people live, work, and play. Huawei has made continuous breakthroughs with mid-range and high-end flagship phones. The Mate 8 was a major hit among consumers, and it sold more than 100 million smartphones in 2015. Smartphones are market leaders in multiple countries. Mobile Broadband and Home Device Product Line transformed itself by focusing on consumers. Smart watch integrates technology and fashion. In the IoV and smart home domains, Huawei provides consumers with easy-to-use products, superior services, and an inspired experience through innovative solutions. 4.5G helps carriers tap into vast new markets COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 165 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Huawei was the first company in the industry to put forward the concept of 4.5G. The goal is meeting consumer increasing experience needs and enabling carriers to make full use of legacy assets. Huawei 5G technology optimizes carrier existing 4G network infrastructure and brings higher speeds and a better user experience. 5.12.3 Huawei Regional Strengths Carriers tap into new markets and develop more new services. Huawei is an active player in standards organizations, and has helped make LTE-Advanced Pro, a 4.5G standard, the new marker for LTE standards at 3GPP. Huawei has worked with multiple leading global carriers to deploy pre-commercialized 4.5G networks in Norway, Germany, Australia, Kuwait, Saudi Arabia, the United Arab Emirates, China, Japan, Canada, and Singapore, and has achieved positive results in this regard. Accelerating 5G development through extensive innovation, 5G development has entered a critical phase. Accelerating 5G development requires deeper technological innovation and cross-industry collaboration. Huawei has invested heavily in innovation and emerged as a major contributor to and leader of global 5G development. While making significant breakthroughs in key 5G technologies, Huawei has been an active player in major global 5G organizations such as the EU's 5G Infrastructure Public Private Partnership (5G-PPP). It has launched joint innovation projects with partners. One example is a partnership with NTT Docomo, Japan's largest mobile communications carrier. NTT launched the world's first multi-user 5G testing site in Chengdu, China. The real-world testing environment provided at the site enables us to systematically verify 5G air interface technology and network architecture. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 166 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.12.4 Huawei Building Cloud Ecosystem Huawei has launched cloud ecosystem strategy. under which we focus on IaaS, enable PaaS, aggregate SaaSa , and develop a leading cloud operating system, Big Data platform, and PaaS platform based on software platforms and enterprise cloud services to create an open cloud ecosystem. At the end of 2015, the number of Huawei's enterprise cloud partners exceeded 500. Working together, we have provided cloud services to over 2,500 customers in the government & public utility, telecom, energy, and finance sectors across 108 countries and regions, deploying more than 1.4 million virtual machines. We have also built 660 data centers worldwide, including 255 cloud data centers. Huawei is actively supporting developers. In the carrier and enterprise markets, Huawei has a open ICT developer ecosystem strategy. ICT infrastructure open innovative and leading ICT capabilities to developers. An open environment enablement platform is used for the carrier and enterprise markets. Developers create innovative services, rapidly respond to and meet customers' business needs, and help customers achieve business success. Over the next five years, Huawei will invest US$1 billion to implement a developer enablement plan. Huawei has 180 million consumer cloud service users and 27.5 billion app downloads in the Huawei AppStore (HiApp). Huawei has opened up software and hardware capabilities in cloud and devices, and provided a series of development, testing, and promotion services for 150,000 mobile app developers. It has organized activities, including the Maker Lecture Room, the Maker Carnival, and the Maker Competition to unleash the creativity of young people, and motivate developers to succeed. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 167 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.12.5 Huawei Adopting a Product + Service Strategy Huawei service strategy targets a ROADS experience, shifting from a "product driven + service as support" focus to a "product driven + service driven" focus. Through open collaboration, it has established a digital business ecosystem, and continued to improve network performance, service quality, and user experience. Through consulting and system integration services, Huawei has become a strategic partner for carriers' operations transformation and ICT infrastructure restructuring. Huawei Revenue by Segment (In Millions of Dollars) Year Ended December 31, Carrier Network Business Telecom Networks Global Services Devices Total Source: Huawei company reports 2014YET 30,941.4 3,123.7 12,098.0 263.1 46,426.2 2015YET 34,846.1 4,141.4 19,369.2 894.8 59,251.4 2014YET 17,539.9 2015YET 25,153.5 16,268.7 6,834.2 4,970.0 813.5 17,539.9 19,202.4 7,579.1 5,846.4 1,470.0 59,251.4 Huawei Revenue by Regional Segment (In Millions of Dollars) Year Ended December 31, China Overseas EMEA Asia Pacific Americas Others Total Source: Huawei company reports COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 168 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Huawei is a leading global ICT solutions provider. Through dedication to customer-centric innovation and strong partnerships, they have established end-to-end capabilities and strengths across the carrier networks, enterprise, consumer, and cloud computing fields. They are committed to creating maximum value for telecom carriers, enterprises and consumers by providing competitive ICT solutions and services. Their products and solutions have been deployed in over 140 countries, serving more than one third of the world's population. Huawei 's vision is to enrich life through communication. By leveraging their experience and expertise in the ICT sector, they help bridge the digital divide by providing opportunities to enjoy broadband services, regardless of geographic location. Contributing to the sustainable development of society, the economy, and the environment, Huawei creates green solutions that enable customers to reduce consumption, carbon emissions, and resource costs. 5.12.6 Huawei Vision & Mission They can only earn customers respect and trust through continuous dedication and hard work. Therefore, they have insisted on customer centricity, creating long-term values and bringing customers success. 5.12.7 Huawei Strategy To adapt to the revolutionary changes that are taking place in the information industry, Huawei is making strategic adjustments to better serve its customers. Huawei has extended the reach of its innovative offerings from the telecom carrier network field to the enterprise and consumer fields. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 169 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.12.8 Huawei Financial Highlights Through the dedicated efforts of all their employees, their sales revenue reached CNY203.9 billion and net profits amounted to CNY11.6 billion in 2011. 5.12.9 Huawei Corporate Governance Huawei advocates "customers as their focus and dedicated employees as their foundation." They will continue to improve organizational structure, processes, and appraisal systems to achieve effective growth. 5.12.10 Huawei Research & Development Huawei 's R&D expenses totaled CNY23,696 million in 2011, and the company has spent accumulatively over CNY100 billion on R&D over the last decade. 5.12.11 Huawei Cyber Security At Huawei , establishing and implementing an end-to-end global cyber security assurance system is an integral part of their development strategy. Huawei is always ready to cooperate extensively with governments, customers, and industry peers to address cyber security threats and challenges all over the world. 5.12.12 Huawei Milestones Founded in 1987, Huawei has grown from a USD 5,680 small company to a global company with a sales volume of over USD 20 billion with business presence in over 140 countries thanks to the tireless efforts of its staff and the company's globalmindedness. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 170 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.12.13 Huawei Annual Report Huawei Technologies releases an annual report with consolidated financial statements audited by KPMG. Huawei Partners with China Telecom, Shenzhen Gas On Smart Utility 5.12.14 Huawei has worked to create a smart utility; the firms open a working group to develop gas meter reading and gas grid surveillance solutions. Huawei signed a narrowband “internet of things” cooperation agreement with two compatriot companies, Shenzhen Gas and China Telecom Shenzhen, with the aim of promoting the NB-IoT application in smart utility applications. A joint work group is to be set up to start cooperation on household meter reading, gas grid surveillance and integration of gas IT applications. The joint work group aims to achieve technological verification and trial application. NB-IoT-based remote meter reading is being done to verify the technological feasibility. The group plans to carry out industrial standardization of the NB-IoT technologies on data transmission for smart gas terminals in a move to boost the extension of NB-IoT applications to the gas industry, and plans to promote the scale deployment of NB-IoTbased smart utility tech in gas provisioning to facilitate the construction of a smart city initiative in the city of Shenzhen. The NB-IoT technology features deep coverage, massive connectivity, ultra-low power consumption, high reliability and security. The solution upgrades the gas industry applications. NB-IoT solution facilitates telecom operators by embracing new opportunities in terms of IoT services, boosting the healthy network construction cycle. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 171 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Huawei safe city solutions have been deployed in 100 cities across 30 countries. 5.13 Microsoft Microsoft targets personal computing. It seeks to bring automated process to every person and every organization. It seeks to build best-in-class platforms and productivity services for a mobile-first, cloud-first world. Microsoft works to reinvent productivity & business processes, build the intelligent cloud platform, create more personal computing. 5.13.1 Microsoft / Mojang AB Minecraft Mojang AB is a games studio based in Stockholm, Sweden. It was founded in 2009. The creator of the best-selling game: Minecraft second game, the card-collecting tactical battler Scrolls, and have dabbled in publishing with Oxeye Game Studio’s awesome side-scrolling robo-blaster Cobalt. In 2014, Mojang was bought by Microsoft. The acquisition hasn’t changed much about the company. It supports games on multiple platforms, including iOS, Playstation and more, as well as Windows and Xbox. 5.13.2 Microsoft Reportable Segments Productivity and Business Processes Microsoft Productivity and Business Processes segment consists of products and cloud services. They are included in portfolio of productivity, communication, and information services. They span a variety of devices and platforms. This segment comprises: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 172 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts TABLE 5-26 MICROSOFT PRODUCTIVITY AND BUSINESS PROCESSES SEGMENT • Office Commercial, including volume licensing and subscriptions to Office 365 Commercial for products and cloud services such as Microsoft Office, Exchange, SharePoint, and Skype for Business, and related Client Access Licenses (“CALs”). • Office Consumer, including Office sold through retail or through an Office 365 Consumer subscription, and Office Consumer Services, including Outlook.com, OneDrive, and consumer Skype services. • Microsoft Dynamics business solutions, including Dynamics ERP products, Dynamics CRM on-premises, and Dynamics CRM Online Source: WinterGreen Research, Inc. Intelligent Cloud Microsoft Intelligent Cloud segment consists of public, private, and hybrid server products and cloud services that can power modern business. This segment primarily comprises: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 173 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Figure 54. Microsoft Intelligent Cloud Segment • Server products and cloud services, including Windows Server, Microsoft SQL Server, Visual Studio, System Center, and related CALs, as well as Microsoft Azure. • Enterprise Services, including Premier Support Services and Microsoft Consulting Services. More Personal Computing Microsoft personal computing segment consists of products and services geared towards harmonizing the interests of end users, developers, and information technology professionals across screens of all sizes. This segment primarily comprises: • Windows, including Windows original equipment manufacturer licensing (“Windows OEM”) and other non-volume licensing of the Windows operating system, volume licensing of the Windows operating system, patent licensing, Windows Embedded, MSN display advertising, and Windows Phone licensing. • Devices, including phones, Surface, and Microsoft PC accessories. • Gaming, including Xbox hardware; Xbox Live, comprising transactions, subscriptions, and advertising; video games; and third-party video game royalties. • Search advertising. Microsoft revenue is directly attributed to segments. Revenue recognized by one segment may benefit other segments. Revenue on certain contracts is allocated among the segments based on the relative value of the underlying products and services, COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 174 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts which can include allocation based on actual prices charged, prices when sold separately, or estimated costs plus a profit margin. 5.13.3 Microsoft Revenue by Segment Microsoft Revenue by Segment (In Millions of Dollars) Quarter Ended September 30, Corporate and Other Productivity and Business Processes Intelligent Cloud More Personal Computing Total Source: Microsoft company reports COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 2015Q3 -1,200.0 6,306.0 5,892.0 9,381.0 20,379.0 2016Q3 -1,881.0 6,658.0 6,382.0 9,294.0 20,453.0 175 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Microsoft Revenue by Segment, 3 Months and 6 Months Ending December 31, Worldwide, 2015 and 2014 In Millions of Dollars Three Months Ended December 31, Microsoft Productivity and Business Processes Intelligent Cloud Personal Computing Corporate and Other Total revenue Six Months Ended December 31, 2015 2014 2015 2014 6,690.0 6,343.0 6,822.0 6,041.0 12,990.0 12,232.0 13,312.0 11,516.0 12,660.0 13,282.0 22,114.0 24,548.0 -1,897.0 325.0 -3,161.0 295.0 23,796.0 26,479.0 44,175.0 49,671.0 Source: WinterGreen Research, Inc. Microsoft is a technology leader focused on building best-in-class platforms and productivity services for a mobile-first, cloud-first world. Microsoft software, services, and devices deliver opportunity, convenience, and enhanced value. Highlights from the second quarter of fiscal year 2016 included: • Commercial cloud, comprises Office 365 Commercial, Microsoft Azure, and Dynamics CRM Online, reached an annualized run rate exceeding $9.4 billion. • Office 365 Consumer subscribers increased to 20.6 million. • Dynamics CRM Online seats more than doubled year-over-year. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 176 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • Microsoft Azure revenue from premium services nearly tripled year- over-year, and over one third of the Fortune 500 have Enterprise Mobility, nearly tripling year-over-year. • Windows 10 is running on 200 million devices worldwide. • Xbox Live monthly active users grew 30% year-over-year to 48 million. 5.13.4 Skype and Microsoft Skype is part of Microsoft. Skype enables people to connect in ways that transform and enhance their lives. Skype offers text, voice and video to make it simple to share experiences with the people that matter, wherever they are. Skype works on whatever device the user has. It works on the phone or computer or a TV. Skype is free. People can speak, see and instant message other people on Skype. Group videos work with the latest version of Skype. When users pay a little on Skype they can do more things, in more ways, with more people. Low fees permit calling phones, accessing WiFi and sending texts. Users can pay as you go or buy a subscription. In the workplace, users can bring an entire ecosystem of workers, partners and customers together. Skype works by adding friends, family and colleagues. Hundreds of millions of people are using Skype to do things together. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 177 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.13.5 Microsoft / Skype / GroupMe Free Group Messaging Microsoft / Skype / GroupMe provides a private chat room for a small group. Users can have as many as wanted , and it's always free. Users can coordinate with coworkers, organize a game night, and keep in touch with family all in the same place. Figure 55. Microsoft / Skype / GroupMe Free Group Messaging Source: GroupMe GroupMe was built overnight at a TechCrunch Disrupt Hackathon. The messaging app quickly accumulated millions of users, millions in venture capital, 20 employees, and an overwhelming barrage of media attention. The momentum was enough to convince Skype to purchase GroupMe. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 178 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.13.6 Microsoft SOA Service Orientation (SO) is the natural evolution of current development models. Object-oriented models came before the component-based development model in the 90s. Service orientation (SO) retains the benefits of component-based development (self-description, encapsulation, dynamic discovery and loading). There is a shift in paradigm from remotely invoking methods on objects, to one of passing messages between services. Schemas describe the structure of messages. Contracts are used to define acceptable message exchange patterns and policies to define service semantics. This promotes interoperability, and thus provides adaptability benefits, as messages can be sent from one service to another without consideration of how the service handling those messages has been implemented. Figure 56. Microsoft Service Orientated Architecture SOA Functions COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 179 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts To developers and solution architects, service orientation is a means for creating dynamic, collaborative applications. By supporting run-time selection of capability providers, service orientation allows applications to be sensitive to the content and context of a specific business process, and to gracefully incorporate new capability providers over time. To the IT manager, service orientation is a means for effectively integrating the diverse systems typical of modern enterprise data centers. By providing a model for aggregating the information and business logic of multiple systems into a single interface, service orientation allows diverse and redundant systems to be addressed through a common, coherent set of interfaces. To the CIO, service orientation is a means for protecting existing IT investments without inhibiting the deployment of new capabilities. By encapsulating a business application behind capability-based interfaces, the service model allows controlled access to mission-critical applications, and creates the opportunity for continuous improvement of the implementation behind that interface. Service orientation protects investments from the swirl of change. To the business analyst, service orientation is a means of bringing information technology investments more in line with business strategy. By mapping employees, external capability providers and automation systems into a single model, the analyst can better understand the cost tradeoffs associated with investments in people, systems and sourcing. To Microsoft, service orientation is a crucial prerequisite to creating applications that leverage the network to link the actors and systems that drive business processes. This application model transcends any single device, crossing boundaries respectfully, and rejecting the restrictions of synchronicity. SOA-enabled solutions pull together a constellation of services and devices to more effectively meet your business challenges than the disconnected applications of the past. Source: WinterGreen Research. Inc. The architectural concepts associated with SOA enable loose coupling. Loose coupling is the fundamental principle behind SOA, enabling us to summarize up the benefit of SOA in a single word: agility. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 180 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts As traditional application architectures evolved from the mainframe application through client server to multi-tier web applications, the applications have remained to a large extent tightly coupled. In other words, each of the subsystems that comprise the greater application is not only semantically aware of its surrounding subsystems, but is physically bound to those subsystems at compile time and run time. The ability to replace key pieces of functionality in reaction to a change in a business model, or of distributing an application as individual business capabilities, is simply not possible. With a Service Oriented Architecture the application’s functionality is exposed through a collection of services. These services are independent and encapsulate both the business logic and its associated data. The services are interconnected via messages with a schema defining their format; a contract defining their interchanges and a policy defining how they should be exchanged. 5.13.7 Microsoft .Net Open Source Microsoft is seeking to address the needs of the open source community with .Net. Roslyn compiler project to open source and formed the .Net Foundation to promote .Net technologies in open source. Open-sourcing of its WinJS JavaScript project is underway. Roslyn is the .Net Compiler Platform. It provides C# and Visual Basic compilers with rich code analysis APIs so that developers can build code analysis tools with the same APIs Microsoft uses to implement Visual Studio. An end-user preview of Roslyn for Visual Studio 2013 was announced as well. 5.14 Mitel Mitel business communication powers 2 billion connections every day, including over 33 million daily cloud connections. It helps companies connect, collaborate and COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 181 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts take care of their customers anywhere, anytime, over any device. With over 40 years of experience providing business communication solutions, more than 60 million users in 100 countries have with their communication needs. It’s why we hold the #1 market share leader in Europe, the Middle East and Africa. It is a leader in Unified Communications. Offering the best path to the cloud has made a fastest-growing global cloud communication provider. 5.14.1 Mitel Business Communication Experts Mitel has the industry’s broadest portfolio of business phone systems, collaboration and contact center solutions . Target markets are communications needs of the smallest business to the largest enterprise, in the cloud and on premise. Mitel products include applications and mobility options that optimize businesses and make companies more productive. Solutions help customers keep up with leading technology trends, like bring-yourown-device (BYOD), cloud-enablement and multi-channel communication. Businesses can even use our solutions to help attract and retain the best employees and customers. Solutions create a foundation for scalable and upgradable systems. Mitel is an innovative company but technology does not dictate our decisions. Mitel solutions are designed based on customer business objectives and challenges, and innovation is reflected in 1,800 patents and applications. 5.14.2 Mitel Empowering Partners Mitel has 2500 channel partners globally. Partners win customers with margin advantage, sales and marketing enablement and the most flexible solutions. In the cloud, on premise or a hybrid of the two, Mitel is there. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 182 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The choice and flexibility of products and services enable partners to build efficient, robust offerings that are tailored to suit their business needs. Partners gain additional advantages through our post-sales technical support and one-on-one relationship approach. 60 Million Users Worldwide Award-winning Reliability & Redundancy Unlimited Calling/Faxing/Conferencing $19.95 Anytime -Fees Apply 5.14.3 Mitel Signs Definitive Agreement to Divest Mobile Business Mitel has refocused on UCC market as digital transformation accelerates premise to cloud transition. Reduces gross leverage from 3.3x to 1.8x on a proforma basis and improves cash flow to drive shareholder value Mitel® (Nasdaq:MITL) (TSX:MNW), a global leader in real-time business, cloud and mobile communications, today announced that it has entered into a definitive agreement to divest its mobile division to the parent company of Xura, Inc. for $350 million in cash, a $35 million non-interest bearing promissory note and an equity interest in Sierra Private Investments L.P., the limited partnership that will own Xura and the mobile division. The cash portion of the purchase price is subject to adjustments for closing working capital and indebtedness. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 183 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.14.4 Mitel Reports September Quarter Results GAAP Revenues of $279.8 million In Q3 the Mitel team delivered a solid performance reporting GAAP EPS of $0.20 and non-GAAP EPS of $0.12. In a highly competitive and rapidly changing landscape, Mitel continued to win new enterprise accounts in premise and cloud. Financial Highlights in millions (except per share data) Q3 2016 Q3 2015 279.8 $ Historical Currency Constant Currency1 GAAP Revenues $ GAAP Net Income (Loss) $ 25.1 290.7 $ $ 285.8 (8.1 ) $ $ (0.08 ) (9.2 ) GAAP EPS $ 0.20 $ (0.07 ) Significant new contract award for 60,000 private cloud users from a major German automobile manufacturer. Deployment is scheduled to begin in the fourth quarter of this year. Introduced the new Mitel 6900 series sets with high resolution touch screen display designed for seamless smartphone and desk phone integration, featuring COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 184 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts bluetooth sync for automatic handoff from smartphone to desk phone, shared access to contacts across devices and WiFi connectivity. 5.14.5 Mitel Cloud and Revenue Recurring cloud seats grew by 43,000 during the quarter, up from 31,000 seats added during Q2-2016, and now stand at 494,000 seats. Bouygues Telecom, a leading enterprise carrier in France, chose Mitel UCaaS solutions to market to their more than two million professional and corporate users. A major European government customer chose to migrate 40,000 seats through a Mitel Cloud enabled service provider. Strength in cloud services in North America and Europe. Mitel Networks (in millions of US dollars) MITL-F CY15 Q1 CY15 Q2 CY15 Q3 CY15 Q4 CY16 Q1 CY16 Q2 CY16 Q3 Total Cloud 1,375,635 1,611,172 1,763,857 1,929,882 2,194,040 2,468,791 2,654,978 Seats Recurring Cloud 304,956 329,620 370,093 401,737 419,766 450,856 494,302 Seats Retail Cloud $ 50 $ 49 $ 49 $ 49 $ 50 $ 50 $ 47 Monthly ARPU Retail Cloud Avg Seats per $ 39 $ 38 $ 39 $ 39 $ 37 $ 37 $ 37 Customer Retail Cloud Monthly 0.8 % 0.7 % 0.9 % 0.7 % 0.6 % 0.7 % 0.7 % Customer Churn COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 185 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts MITEL NETWORKS CORPORATION SUMMARY STATEMENT OF OPERATIONS INFORMATION (in millions of US dollars) (unaudited) As Reported Quarter Ended September 30, 2016 (US GAAP, except as indicated otherwise) Non-GAAP Revenues $ Less: Purchase accounting revenue adjustments Total Revenues Three Months Ended June 30 279.8 279.8 As Reported Quarter Ended September 30, 2015 (US GAAP, except as indicated otherwise) $ 293.7 (3.0 290.7 ) Six Months Ended June 30 2016 2015 2016 2015 307.2 276.9 583.3 525.0 5.14.6 Mitel Enhances Reliability of Cloud-Based Business Communications and Collaboration Services Mitel has a partnership with VeloCloud improves network performance through software-defined wide area networking and provides 3x times cost savings over traditional WANs. New Mitel systems steer business-critical traffic to the highest performing paths with SD-WAN technology. Mitel optimizes the performance of voice and video Assured service quality Provides three times the savings of a traditional WAN COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 186 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.14.7 Mitel Reduced IT Maintenance Mitel® real-time business, cloud networking solution increases the performance and reliability of business communications. Mitel is streamlining network management and providing three times the cost savings of a traditional WAN. Heavy traffic or high bandwidth usage can lower quality for fast, robust Internet connections. MiCloud Edge is powered by Software-Defined Wide Area Network (SDWAN) technology from VeloCloud™. Companies can maximize bandwidth resources to provide optimal service quality for voice and video applications with SD-WAN that enables businesses to prioritize their applications and detect the highest quality connectivity path. MiCloud Edge facilitates network management. It works for multiple locations. New offices or branches can be mobilized within minutes. Simplified configuration options monitor and control them from a centralized, cloud-based location. MiCloud Edge offers cost savings by minimizing the need for IT staff at each office and allows most companies to scale. Software-Defined Wide Area Networking (SD-WAN) is a transformational approach to simplify branch office networking and assure optimal application performance. Unlike traditional WANs, SD-WAN delivers increased network agility and cost reduction. Software-Defined WAN has its roots in Software-Defined Networking (SDN), the underlying principle of which is to abstract the network hardware and transport characteristics from the applications that use the network VeloCloud Orchestrator and a branch platform, V Dynamic Multipath OptimizationTM COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 187 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Aggregate broadband Internet, 4G-LTE, and MPLS circuits with applicationaware per-packet link steering and on-demand remediation to achieve optimal performance for demanding, real-time voice and video over any transport. By deploying Mitel's MiCloud and MiCollab services, NORDSEE aims to streamline communications between its new headquarters in Germany, headquarters in Austria and over 300 restaurants. Consolidation of collaboration, mobility and messaging into a unified infrastructure with one corporate directory is expected to drive employee productivity through easier, more interactive communications. New tools, including video conferencing and chat, will offer new ways of working and cooperating between all sites. Mitel's real-time communications tools will also be available via a single smartphone app enabling staff to access company data from any device or location. Mitel will initially deploy MiCloud and MiCollab at NORDSEE's new headquarters in Bremerhaven, Germany, before rolling the solution out to its stores and restaurants across Germany and Austria. Mitel MiCloud product overview is part of a series on unified communications as a service, or UCaaS. Part one examined the evolution of UC in the cloud, and part two discussed the business case for UCaaS. Part three detailed the purchasing criteria and key features to consider, and part four compared the top vendors in the market. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 188 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The Mitel MiCloud Enterprise, Business and Office products provide a complete cloud-based unified communications portfolio that users can pair with advanced services, such as cloud contact centers and video conferencing. MiCloud Enterprise is geared toward large companies, with 100 to 10,000 users. The product is based on Mitel's MiVoice Business and MiCollab platforms, which means companies with Mitel voice over IP products can move to the cloud-based platform without a significant learning curve. MiCloud Enterprise features include call transfer, speed dial, call recording, do not disturb, localized E911, instant messaging and presence, PC softphone, voicemail with integrated email forwarding, call conferencing, and the MiCollab desktop and web client. Mitel users can manage their products and services with one bill that includes the whole infrastructure, along with MPLS networks and Session Initiation Protocol trunks for incoming and outgoing calls. The company provides a range of compatible IP phones, including desk phones, wireless phones and conference stations. Enhanced mobility features for smartphones and mobile devices help employees communicate with each other and customers no matter where they're located. MiCloud Enterprise integrates with Salesforce and Microsoft Office. Additional customer relationship management (CRM) systems can also be connected. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 189 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.14.8 Mitel Cloud Technology The key to the successful deployments is the user experience. Giving users a vastly improved user experience in terms of voice codecs, but not removing any of the services that they’re used to, like ringback tones, prepay—these are the key things, as well as introducing new services based on VoLTE as a platform, such as VoWiFi. VoLTE, is the catalyst to moving to an all IP, all IMS-based core network, which fundamentally means this is the first time that a mobile network operator’s servers for voice have been independent of the user agent (the device) and the access network. This means that VoLTE is an enabler for the next generation of services—not just voice calling. They enable the operator to make the move to things like contextualized communications, multi-device support, support for SIMless devices and new paradigms enabled by WebRTC and other technologies. A move to the cloud is actually a two-step process: the first is virtualization, and the second is the “cloudification” of the applications. It’s really the latter that enables NFV; it’s where you re-architect the products to fully exploit and realize the benefits that NFV would provide. Virtualized deployments have been around for a number of years now. Commercial deployments of VoLTE that are virtualized. The next stage is NFV, cloudification and fully automated networks. 5.14.9 Mitel’s Approach To Developing 5G Technologies 5G is more than just another “G.” It’s actually a new type of network: dynamic, automated, supporting the shift from communication between people to communication between things. This actually means a new way of architecting your network based on NFV technology and, more significantly, microservices. Mitel is at the leading edge of microservices architecture and exposing the network via open APIs. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 190 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts In the next three years, the biggest change in networks will be the move to a DevOps model. This will be a paradigm shift for the way operators build and operate their networks. It will have to be matched by the vendors. This is all in support of continuous development and continuous innovation within the networks. 5.15 NEC Figure 57. NEC Global Sales by Segment Source: NEC. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 191 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.15.1 NEC Communication Platforms NEC is positioned to support maintaining competitive advantage. Employees and customers can interact rapidly and with as few barriers as possible. NEC offers an array of products that helps everyone throughout an organization communicate seamlessly both with customers and with one another. The results are greater efficiency and increased productivity. 5.15.2 NEC Software-Based Communication Platforms Solution Function UNIVERGE Cloud Services UCaaS completely UNIVERGE Cloud Services changes the way you purchase communications and Unified redefines the way you communicate - truly empowering Communication- your workforce to become more agile, more flexible as-a-Service and more productive. (UCaaS) COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 192 www.wintergreenresearch.com/blog Email: [email protected] mor SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts UNIVERGE 3C is a complete, software-based, UNIVERGE 3C mor unified communications solution that redefines the way a business and individuals communicate. more 5.15.3 NEC Software and Hardware Based: UNIVERGE® SV9000 Solution Function UNIVERGE® more The next evolution of award-winning mor SV9000 communications technologies for businesses of all sizes, Series the UNIVERGE SV9000 provides cutting-edge technology that streamlines communications and information delivery. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 193 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.15.4 NEC Small to Medium-Sized Businesses Communication Platforms Solution Function SMB more Each SMB Platform is a comprehensive Communication integrated solution designed to meet the unique Platforms challenges and communication needs of SMBs. mor Organizations can decide the most effective and costefficient way for their employees to communicate. 5.15.5 NEC Large Enterprise Communication Platforms Solution more Feature Large Provides business value to those larger enterprises dealing Enterprise with issues of regional and global expansion, worker mobility, Communication disaster recovery, business continuity and environmental Platforms responsibility. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 194 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.16 NetSapiens NetSapiens is headquartered in San Diego, California. It is a growing, agile and highly efficient organization. NetSapiens has 29 employees and revenue of $6.3M in 22016. They have raised $3.3M in funding. NetSapiens offers smart network applications. It leverages communications networks. NetSapiens delivers the communication applications. At NetSapiens, SNAPsolution is available when users pay a one-time initial cost for the total number of current calls handled on the system. Users get unlimited seats with all features included. Concurrent call pricing model is efficient. With the NetSapiens SNAPsolution, value comes from the VoIP or Unified Communications platform. Instead of paying high prices for only some of the software features needed, the SNAPsolution pricing model is designed to give all of the features based on flexible concurrent call pricing. 5.17 RingCentral Next-Gen Competitor Ring Central is the market leader in SaaS. The move to the cloud is transforming every industry, and the enterprise communication solutions are leveraging SaaS. As the mobile workforce works from anywhere, people require multiple ways to communicate. Avaya's bankruptcy is a reflection of the industry shift from on-premises solutions to the cloud, giving RingCentral significant market traction. It is positioned to empower businesses with innovative solutions that provide a mobile-first, unified communication experience. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 195 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.18 Shoretel ShoreTel offers an Internet protocol-based telephony hardware and software. It targets small and midsized businesses, government agencies, and schools. IP services is a less expensive alternative to standard phone service. It provides voice, video, data, and mobile communications; products include phones and switches. Messaging and systems management software are offered. The company licenses its software for use in customers' own data centers and offers a cloud-based subscription service. ShoreTel outsources its manufacturing operations, generates most of its sales in the US. It has sold systems to about 35,000 customers in the financial services, health care, manufacturing, and technology industries. Figure 58. ShoreTel Target Markets Financial services Health care Manufacturing Technology Outsources manufacturing operations Generates most of its sales in the US Sold systems to 36,000 customers Source: WinterGreen Research, Inc. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 196 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts ShoreTel Revenue: Three Months Ended Six Months Ended December 31, 2016 2015 2016 2015 $41,048 $64,129 $82,581 $72,316 $59,886 $37,863 $37,989 Product $32,280 Hosted and related services $36,694 $30,484 Support and services $19,060 $18,899 Total revenue $88,034 5.19 $90,431 $174,308 $180,456 Vonage Vonage is a leading provider of business VoIP. User lines are available as low as $19.99. What I really like about Vonage Business, is their incredibly easy-to -use online portal. They make it really simple to add and remove features and forward calls to your cell phone, which is great. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 197 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Three Months Ended September 30, 2016 $ Total revenues Three Months Ended 2015 248,359 $ 223,360 Nine Months Ended September 30, 2016 2015 2016 2015 $248,359 $223,360 $708,858 $664,948 Vonage revenues are for services, revenue derived from monthly subscription fees that customers are charged under service plans. Services revenues are also accrued from per minute fees for international calls if not covered under a plan. Monthly subscription fees are automatically charged to customers’ credit cards, debit cards or electronic check payments. 5.20 West Corporation West is a global provider of technology-enabled communication services. West offers a broad range of communication and network infrastructure solutions that help manage or support essential communications. These solutions include unified communications services, safety services, interactive services such as automated notifications, specialized agent services and telecom services. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 198 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts The scale and processing capacity of West technology platforms, combined with expertise in managing multichannel interactions, enables provision of reliable, highquality, mission-critical communications. Systems are designed to maximize return on investment and help build smarter, more meaningful connections. West is improving channels, adding capabilities. and supporting business and consumer collaboration, connection, and transaction. Clients include Fortune 1000 companies, small and medium enterprises. West is active in a variety of industries: telecommunications, retail, financial services, public safety, education, technology and healthcare. It has operations in the United States, Canada, Europe, the Middle East, Asia-Pacific, Latin America and South America. 5.20.1 West Services Unified communications services are integrated. Unified communications services are available as a complete cloud-based solution. Unified communications consist of enterprise SIP voice, conferencing, collaboration, network management, unified messaging, and presence. Contact center and client application integration are offered. West combines reliable technologies with experience and flexibility. The aim is to provide solutions that are easy to use and scalable. Customization to client specific needs is part of the solution package. Products and services can improve aspects of business by enabling personalized engagement, meetings, enhanced productivity, and immersive communication experiences. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 199 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.20.2 West Corporation Revenue September 30, Three Months Ended Nine Months Ended 2016 2015 2016 2015 $ 571,407 $ 574,448 $ 1,724,583 $ 1,711,829 Figure 59. West Corporation Revenue by Segment September 30, Three Months Ended Nine Months Ended 2016 2016 2015 $1,085,248 $1,109,931 220,648 208,528 221,400 194,332 206,128 203,840 2015 Unified Communications Services $352,377 $365,822 Safety Services 75,061 73,812 Interactive Services 76,439 68,237 Specialized Agent Services 70,255 68,196 Intersegment eliminations COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 200 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts (2,725) (1,619) (8,841) (4,802) $ 574,448 $ 1,724,583 $ 1,711,829 Total $ 571,407 5.21 ZyXEL Source: ZyXEL Figure 60. ZyXEL SIP IP PBX Functions X6004 ˍ SIP Proxy, Registrar and Redirect Server (RFC 3261) ˍ DSP Supporting Rich Call Features and Codec Transcoding ˍ Optional Trunking Interfaces Supporting FXO, FXS, ISDN-BRI, T1, E1 and SIP Trunks ˍ Voice Mail with E-mail Forwarding COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 201 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts ˍ Firewall-transparent Softphone and Web Phone ˍ Upgradeable N-way Meet-Me Conference ˍ Web-based Management for System and Personal Configurations ˍ Auto-provisioning ˍ ZyXEL SmartExpand Stackable Mechanism Stable Telephony Services are provided. X6004 uses IP PBX DSP to prevent unpredictable service break-offs. Smart expand allows users to stack many X6004 to gain in capacity and system availability. Premium Voice Quality is offered. Dedicated DSP resource and QoS mechanism guarantee premium voice quality and performance. With wideband CODEC, ZyXEL VoIP solution provides excellent voice quality. Excellent Mobility and Productivity X6004’s soft phone and personal web phone enable the road warriors with complete telephony service as working in office. Firewall transparent VoIP communications ensures the best portability. Easy Management is featured. The intuitive web-based management, wizard program and centralized dashboard ease the administration hassle. Auto provisioning minimizes the effort of deploying all sorts of ZyXEL IP phones, ATAs and VoIP gateways. Expandable Design Protects Customer Investments. Modular design of trunk interfaces, features, and DSP ensure incremental investment to fit needs. X6004 can work as a trunk gateway as well to construct a multi-site VoIP service environment with other X6004s. Seamless Integration with Telco, ITSP Services, and Legacy PBX COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 202 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts X6004 supports the versatile trunking expansions, including FXO, FXS, ISDN, T1 and E1. The users can easily fit into all sort of telephony environment. Standard SIP trunks and trusted peers make X6004 seamlessly integrated with ITSP services. Value-added Services Enrich VoIP Applications in Enterprise applications. With click-to-talk call center, 64-line meet-me conference and video conference, X6004 enables the brand new working style through converged and unified communications. Leveraging Microsoft Office Exchange Server, X6004 makes E-mail and VoIP as a complete UC application. Figure 61. ZyXEL Enterprise-Grade SIP IP PBX System for Small and Medium Businesses Specifications, System Specifications, Standard Protocols • SIP Proxy, SIP Registrar and SIP Redirect Server (RFC 3261) • SIP Outbound Proxy Server • SDP (RFC 2327), RTP (RFC 1889), RTCP (RFC 1890) Basic Call Services • Caller ID • Call Waiting • Call Hold and Retrieve • Call Park and Retrieve • Call Pickup (Group/Direct) • Call Forward (No Answer, Busy, Unconditional) • Do Not Disturb (DND) COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 203 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • Call Transfer • Call Back on Busy • Distinctive Ringing: 12 Kinds of Ring Tones for 3 Types of Calls • Intercom • Call Detail Record (CDR) Database • Phonebook: - Automatically Synchronized with LDAP Server - Locally Manipulated Phonebook • Cross-subnet Group Paging • Music-On-Hold • SIP Presence Outbound Call Handling • Call Emergency • Least Cost Route (LCR) • Group Control • Call Access Code • Call Screening • SIP Trunks and Trusted Peer for ITSP Services Incoming Call Handling COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 204 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • Call Blocking • Hunt Group: - Ring Algorithm: Ring All, Round Robin, Least Recent, Fewest Calls, and Random • Direct Inward Dialing (DID/DDI) • Night Service: - Auto-attendant - Call Forwarding - Hunt Group Voice Mail and Auto Attendant • 10 x 10 x 10 Auto Attendant (AA) Profiles and Interactive Voice Response (IVR) • Voice Mail (VM) with E-Mail Forwarding • Message Waiting Indicator (RFC 3842) Advanced • Meet Me Conference: Support Up to 64 Lines per Conference (with optional 64CH DSP expansion module) • Click to Dial: Contact in Personal Web Portal • Personal IVR • Firewall Transparent Web Phone and Soft Phone • Compact Click-to-Talk Call Center COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 205 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • PC-based Attendant Console • SIP Surveillance Codec/DSP • Voice Codec and Support DSP Trans-coding: - G.711a/µ - G.729a/b - G.726 (32 Kbps) - G.723.1 (5.3 Kbps) • Wideband Voice Codec Pass-through: - G.722 - G.722.2 AMR-WB • Video Codec Pass-through: - H.261 - H.263 - H.264 - MPEG-4 SP/ASP • G.168 Echo Cancellation • G.711 PCM Fax/Modem Detection and Pass-through • Voice Activity Detection (VAD) • Comfort Noise Generation (CNG) COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 206 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • Dynamic Jitter Buffer • DTMF Detection and Generation • DTMF Relay: - In-Band - RFC 2833 - SIP Info • Auto Gain Control (AGC) Management • Web-based Management for System and Personal Configuration • ZyXEL SmartExpand Dashboard • Intuitive Wizard for IP PBX Administration • Group-oriented Authority Management • Quality of Service: IPTOS and DiffServ • DSP Channel Allocation • Sys Log • Auto Provision • myZyXEL.com Online Service Subscription • E-mail Notification: - CDR Rotation & Alert - System Log Rotation & Alert • Multi-lingual Web GUI and Voice Prompts Reliability COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 207 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • Full Redundancy: Active-Active and Active-Standby • Backup Power Module (BPM) • FXO Lifeline Flexibility and Scalability • ZyXEL SmartExpand Mechanism • Optional Trunking Expansion Modules: - 4-port FXO - 4-port FXS - 2-port FXO and 2-port FXS with Lifeline - 1-port ISDN PRI (T1/E1 configurable) - 4-port ISDN BRI/ST (NT/TE configurable) • Optional DSP Expansion Modules: 16, 32, and 64 Channels • Optional Advanced Media Storage • Detachable Slide-in Fan Module • Detachable Power Module System Capacity • Max. Extensions: 128 • Max. Voice Mail: - Without Advanced Media Storage: 90 Minutes - With Advanced Media Storage: 1,000 Hours (Optional) • ZyXEL SmartExpand Up to 5 Units Trunk Compliance COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 208 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • ISDN PRI (T1/E1): - Alcatel-Lucent, Avaya, Siemens, and Nortel PBXs • SIP Trunk: - Nokia Siemens, Nortel, Broadsoft, and Huawei Soft Switches Hardware Specifications • Embedded Network Processor • Memory 256 MB SDRAM • Built-in 32 DSP Voice Channels • Storage: - Default 256 MB Flash - Advanced Media Storage Expansion Slot: 1 • Network: - WAN: 10/100M Auto MDI/MDIX, Ethernet: 1 - LAN: 10/100M Auto MDI/MDIX, Ethernet: 1 • Trunking Expansion Slots: 4 • DSP Expansion Slots: 2 • DB9 RS-232 Port for Console Configuration: 1 • Restore Factory Defaults/Reboot Button • LED Status Indicators: SYSTEM, ALARM, HDD and POWER • Power: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 209 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts - Full-Range 75 W PSU (100 ~ 240 V/50 ~ 60 Hz) - Detachable Power Module - BPM Socket: 1 (ZyXEL BPS, 120 W 12 V DC) - Max. Operational Power Consumption: 40 W • Slide-in Fan Module Slot: 1 Physical Specifications • Dimensions: 437 (W) x 310 (D) x 66 (H) mm • Weight: 5.6 Kg (without expansion) Environmental Specifications • Operating Temperature: 0ºC ~ 40ºC • Operating Humidity: 20% ~ 95% RH • Storage Temperature: -30ºC ~ 60ºC • Storage Humidity: 20% ~ 95% RH Component List • System: X6004 • Trunking Expansion Modules: - M6FO4 - M6FS4 - M6FO2FS4 - M6BRI4 - M6T1E1 • DSP Expansion Modules: COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 210 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts - M6D16 - M6D32 - M6D64 • Advanced Media Storage Modules: - M6AMS A Quick Look at X6004 X6004 Hardware View (Front) X6004 Hardware View (Rear) M6FO4 • ZyXEL IPPBX Outbound Trunk • Interface Type: Foreign eXchange Office (FXO) • Signaling Formats: Ground Start and Loop Start • Address Signaling Formats: In-band DTMF • Physical Connector: RJ-11 • Number of Connectors: 4 • Dimensions: 119 (W) x 152 (D) x 18 (H) mm • Weight: 107.6 g M6FS4 • ZyXEL IPPBX Analog Phone Interface • Interface Type: Foreign eXchange Station (FXS) COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 211 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • Signaling Formats: Loop Start • Address Signaling formats: In-band DTMF • REN: 5 per port • Physical Connector: RJ-11 • Number of Connectors: 4 • Dimensions: 119 (W) x 152 (D) x 18 (H) mm • Weight: 121.6 g M6FO2FS2 • ZyXEL IPPBX Outbound Trunk and Analog Phone Interface with Lifeline • Interface Type: Foreign eXchange Office (FXO) and Foreign eXchange Station (FXS) • Signaling Formats: - FXO: Ground Start and Loop Start - FXS: Loop Start • Address Signaling Formats: In-band DTMF • FXS REN: 5 per port • Physical Connector: RJ-11 • Number of Connectors: - FXO: 2 - FXS: 2 COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 212 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts • Dimensions: 119 (W) x 152 (D) x 18 (H) mm • Weight: 126.6 g M6BRI4 • ZyXEL IPPBX Outbound Trunk • Per-port Configurable Mode: NT (Network Termination) and TE (Terminal Equipment) • Protocol: I.430 • Switch Type: 5ESS (US), DMS100 (US), NI1 (US), NET3 (Europe), INS64 (Japan), AUS (Australia) • Supplementary Services: CLIP, DDI, and MSN • Interface Type: ISDN BRI S/T • Physical Connector: RJ-48 • Number of Connectors: 4 • Dimensions: 119 (W) x 152 (D) x 18 (H) mm • Weight: 161.4 g Power Jack Detachable Power Module BPS Connector (BPS-120) COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 213 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Detachable Fan Module HDD Module Trunking Expansion Module M6T1E1 • ZyXEL IPPBX Outbound Trunk • Configurable Mode: NT (Network Termination) and TE (Terminal Equipment) • Protocol: I.431, Q.921, Q.931, and Q.SIG • Switch Type: 4ESS (US), 5ESS (US), DMS (US), NI2 (US), NET5 (Europe), INS (Japan), AUS (Australia), Q.SIG • Supplementary Services: CLIP and DDI • Interface Type: T1/E1 • Physical Connector: RJ-48 • Number of Connectors: 1 • Dimensions: 119 (W) x 152 (D) x 18 (H) mm • Weight: 108.2 g M6D16/32/64 • ZyXEL IP-PBX DSP Expansion Module • Complete VoIP Processing from TDM to Ethernet • Packet Processing: - QoS Pre-router COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 214 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts - VoIP: RTP/UDP/IP/Ethernet - RTCP - DTMF: RFC2833 • G.165/G.168 Echo Cancellation with Echo Path Change Detection • Voice Codecs: G.711 u/A law, G.726, G.729A/B, and G.723.1 • Number of Channel: 16/32/64 • Dimensions: 59 (W) x 64 (D) x 5 (H) mm • Weight: 16.2 g M6AMS • ZyXEL IP-PBX Advanced Media Storage Module • 2.5” SATA HDD: 80 GB • Added-On Feature: - Voice Mail: 1,000 Hr - Call Recording: 100 Hr - CDR Database: 20M records - IVR: 100 Hr • Dimensions: 94 (W) x 155 (D) x 18 (H) mm • Weight: 189.2 g COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 215 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts 5.22 List of Companies 3Com VCX IP telephony module: back-to-back user agent SIP PBX 3CX Phone System, for Windows, Debian 8 GNU/Linux Aastra 5000, 800, MX-ONE Alcatel-Lucent 5060 IP Call server Aricent SIP UA stack, B2BUA, proxy, VoLTE/RCS Client AskoziaPBX Avaya Application Server 5300 (AS5300), JITC certified ASSIP VoIP Bicom Systems IP PBX for telecoms Brekeke SIP Server, SIP proxy, SIP registrar, SIP NAT, TCP/UDP Cisco SIP Proxy Server, Cisco unified border element (CUBE), Cisco Unified Communication Manager (CUCM) CommuniGate Pro, virtualized PBX for IP Centrex hosting, voicemail services, self-care, ... Comverse Technology softswitch, media applications, SIP registrars Creacode SIP Application Server Real-time SIP call controller and IVR solution for carrier-class VoIP networks Dialogic Corporation Powermedia Media Servers, audio and video SIP IVR, media and conferencing servers for Enterprise and Carriers. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 216 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Dialexia VoIP Softswitches, IP PBX for medium and enterprise organizations, billing servers. IBM WebSphere Application Server - Converged HTTP and SIP container JEE Application Server Interactive Intelligence Windows-based IP PBX for small, medium and enterprise organizations Kerio Operator, IP PBX for small and medium enterprises MERA Systems VoIP softswitches with sbc, H.323/SIP proxy Microsoft Lync Server 2010 & 2013 Mitel Communications Director NEC SV7000 back-to-back user agent SIP PBX NEC UNIVERGE 3C Unified Communications and Collaboration software Nokia Siemens Networks hiQ8000 Nortel SCS500 Nortel SIP Multimedia Communication Server 5200 Objectworld UC Server Oracle Communications Converged Application Server (OCCAS) Oracle WebLogic SIP Server Spirent SIP Server Platform ShoreTel IP phone systems with unified communications and contact center built in COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 217 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Unify OpenScape Voice, OpenScape 8000 SIP softswitch, mediaserver, ... (SIP) Snom One free/blue/yellow (Snom acquired and renamed pbxnsip) (SIP) Speedflow Communications VoIP class 4/5 softswitches with integated billing, transcoding, SIP-H.323 converter. Sun Microsystems Sun GlassFish Communication Server Tadiran Telecom Coral Ipx family and Aeonix softswitch Tandberg Video Communication Server - SIP application server, media server and H.323 gateway TrueConf Server - video conferencing server software, SIP gateway Unison Unified communications software Voice Elements Inventive Labs' .NET Voice Development software and SIP stack platform. Zultys MX250/MX30 IP PBXs for SMB and enterprise Wildix WGW series Unified communication platform up to 5000 users on a single server. Up to 65535 users on WMS network REVE Systems Mobile VoIP, Class 4/5 Softswitch with integrated billing and Bandwidth Optimization solutions Clients[edit] Free and open-source license[edit] Blink, OSX, Linux, and Windows Ekiga, formerly named GnomeMeeting, GPL Empathy, using GTK+ libraries and Telepathy framework, GPL COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 218 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Jitsi, a Java VoIP and Instant Messaging client with ZRTP encryption, for FreeBSD, Linux, OS X, Windows; LGPL KPhone, using Qt libraries, GPL, for Linux Linphone, with a core/UI separation, the GUI is using GTK+ libraries, for Linux, OS X, Windows, and mobile phones (Android, iPhone, Windows Phone, BlackBerry) MicroSIP, lightweight softphone, using PJSIP stack, for Windows QuteCom, formerly named OpenWengo, using Qt libraries, GPL, for Windows, Mac, and RPM- DEB-based Linux[2] Ring, with GTK+/Qt GUI, also supports IAX2 protocol, for Linux, OS X, Windows GPL Telephone, OS X softphone written in Cocoa/Objective-C Twinkle, using Qt libraries, GPL, for Linux Yate client, using Qt libraries,[3] GPL[4] Proprietary license[edit] Blink, for Mac eyeBeam and X-Lite, for Windows, OS X LifeSize Desktop, for Windows Phoner and PhonerLite, for Windows, Voice: G.711, G.722, G.726, GSM, iLBC, Speex, Opus; security: TLS, SRTP, ZRTP Polycom PVX, for Windows. Voice: G.711, G.722, G.722.1, G.728, G.729A, Siren Codec; Video: H.261, H.263, H.264; Data: T.120, People+ Content, H.239, H.323 Annex Q far-end camera control COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 219 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Windows Messenger versions 4 and 5 (not to be confused with Windows Live Messenger or MSN Messenger which do not support SIP) Discontinued[edit] Gizmo5, formerly PhoneGaim, based on Pidgin[citation needed] Mobile clients[edit] Free and open-source license[edit] Sipdroid for Android, GPL v3 Linphone for Android, BlackBerry, iPhone, Windows phone; GPL v2 CSipSimple for Android, GPL v3 Ring for Android, GPL v3 Proprietary license[edit] Acrobits for iOS and Android Session border controllers[edit] Main article: Session border controller Acme Packet Session Director Audiocodes Mediant Genband Quantix SBC Ingate Systems Ingate SIParators Metaswitch Perimeta Sonus Networks NBS (Sonus acquired NET) Kamailio COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 220 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Enabled firewalls[edit] Check Point VPN-1 firewalls, include complete SIP support for multiple vendors Intertex SIP transparent routers, firewalls and ADSL modems, for broadband deployments and SOHO market IPFire Linux-based firewall distribution which comes with Quality of service (QoS) to prefer VoIP communications as well as with Asterisk. Cisco PIX/ASA firewalls include complete SIP support The firewall feature in Cisco IOS includes complete SIP support Secure Computing, SnapGear firewall includes siproxd SIP proxy, Sidewinder 7 firewall includes a SIP proxy SonicWall, supports SIP D-Link Firewall DFL-210/260/800/860/1600/2500 supports SIP (SIP-ALG) with firmware 2.20.01.05 and above ZyXEL ZyWALL P1, 2Plus, 5 UTM, 35 UTM, 70 UTM, 1050, USG 100, USG 200, USG 300, USG 1000 supports SIP-ALG Fortinet, all FortiGates running v280/v300 builds Linux Netfilter's SIP conntrack helper fully understands SIP and can classify (for QOS) and NAT all related traffic Juniper Networks Netscreen and SRX firewalls include complete SIP Application Layer Gateway support Netopia Netopia supports ALG COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 221 www.wintergreenresearch.com/blog Email: [email protected]intergreenresearch.com SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts PF, built-in OpenBSD firewall PF can handle the NAT through the "static-port" directive and the bandwidth control through the built-in queuing system of SIP connections pfSense, a firewall/router distribution based on FreeBSD and PF; has QoS that properly tags VoIP traffic and a SIP proxy package that is available for NATed endpoints. Its functionality can be expanded with packages like FreeSWITCH, a free/open source software communications platform for making SIP, voice and chat driven products. Libraries[edit] oSIP Test tools[edit] Ixia (company) commercial SIP-VoIP and Video test and emulation and load test platform Mu Dynamics: commercial SIP-VoIP, RTSP-IPTV Triple Play service assurance platform Codenomicon Defensics: commercial test automation framework **************************** COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 222 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Founded in 1985, provides strategic market assessments in software, communications products, communications services, and advanced technology. Reports focus on opportunities to expand existing markets or develop new markets. The reports access corporate positioning, market strategies, and product marketing opportunities. Reports evaluate the impact of new technologies. Reports assess the strategies and positions of leading participants. The principals of WinterGreen Research have been involved in analysis and forecasting of international business opportunities in healthcare, energy, telecommunications, and advanced computer technology markets for over 30 years. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 223 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts WinterGreen Research Research Methodology WinterGreen Research authors use a structured, consistent, and detailed primary research approach. The methodology supports an analytical approach to market research. In depth comparisons are made of many aspects of the market. Data relating to Industry segments is developed from primary sources to permit presentation of forecasts and market share positioned to have substantive value. Research involves talking to customers, vendors, and distributors, doing trend analysis and attending local and national meetings, conducting interviews while there. Full spectrum research and information services, including market reports, customized research, and customer interviewing are available, reports and research are positioned to provide strategic value to industry participants, strategic planners, and product managers. New systems create indexes that track company performance. These combined with independent industry analysis, leverages the expertise of the WinterGreen Research Analyst team. The company is positioned to have the team members conduct themselves with integrity - always. COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 224 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts All Rights Reserved Reproduction without Permission Prohibited WinterGreen Research takes no responsibility for any incorrect information supplied in this report. Reports are prepared on a best efforts basis by responsible, senior professionals. Reports are prepared by reference to proprietary WinterGreen Research data base information, information supplied by manufacturers, service providers, opinion leaders in the industry, and users. In addition, quantitative market information is based on interviews and in-depth analysis of published material relating to the industry. Although WinterGreen Research strives for accuracy in all its publications, this material may contain errors or omissions and is subject to change without notice. This material is provided as is and without any express or implied warranties, including merchantability, fitness for a particular purpose and non-infringement. WinterGreen Research shall not be liable for any special, indirect, incidental or consequential damages as a result of its use. Tel (781) 863-5078 6 Raymond Street, Lexington, MA 02421 www.wintergreenresearch.com [email protected] COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 225 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts Copyright 2017 WinterGreen Research, Inc. Key Words, Key Words, Manual Wheelchair Standard Wheelchair, 1.Lightweight Wheelchair, wheelchair seating and COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 226 www.wintergreenresearch.com/blog Email: [email protected] SIP Based IP PBX: Market Description, Market Shares, and Market Forecasts COPYRIGHT 2017, WINTERGREEN RESEARCH, INC . www.wintergreenresearch.com Telephone 781-863-5078 Lexington, Massachusetts 227 www.wintergreenresearch.com/blog Email: [email protected]
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