Cisco Leads Enterprise & SMB Voice Market for All of 2005

Alternate headline: Don’t you love statistics #2 (See also Avaya Story this day)

Readers can be excused for being confused by the two press releases issued yesterday by Avaya and Cisco where both claim to be market leaders in telephony following publication by research analysts Synergy Group’s equipment report for 2005.

The answer to how both can be in pole position at the same time lies in the interpretation of the report and in particular the various market segmentation that Synergy and other analysts report upon. Vendors highlight the segments they are doing well in and set their spins machines working.

Here’s the Cisco version:

According to the latest Synergy Research Group report Cisco Systems expanded its leadership position in the global voice market for large, small and medium-sized enterprises for the 2005 calendar year. The report names Cisco as the revenue leader in the worldwide enterprise voice market, including both IP and traditional circuit-based systems, for both the fourth quarter of 2005 and for the entire calendar year.

Synergy’s ‘Q4 2005 Enterprise Voice Market Shares’ report, indicates that Cisco IP Communications products outsold both the legacy and hybrid voice solutions of each of its competitors. Cisco has been recognised as a leader in the IP telephony segment for many years, but this marks the first full year in which Cisco has sold more IP-based voice solutions than the combined IP, hybrid and TDM -based PBX and key systems from any other vendor.

“Cisco’s worldwide shipments grew over 40 percent year-over-year,” said Jeremy Duke, president and CEO of the Synergy Research Group. “Cisco continues to grow on a sustained and consistent basis in the enterprise voice business thanks to its early vision and continuing investment in IP telephony. As enterprise telephony solutions continue to transition to IP, Cisco finds itself uniquely positioned at the heart of both voice and data networks.”

At the same time Cisco say their CallManager Express and new Cisco Hosted Small Business System (Linksys One) and Linksys Voice System products offer IP-based voice solutions covering each segment of the small and mid-sized business markets.
“The most recent market share data shows that more and more organizations around the world are choosing IP-based voice solutions, making Cisco both the market leader and still one of the fastest growing suppliers of business voice solutions,” said Don Proctor, senior vice president of Cisco’s Voice Technology Group. “As customers increasingly recognize the benefits of IP telephony, we are working hard, along with our partners, setting the stage for even more dramatic changes ahead and making communications of all kinds more effective, powerful and productive.”