ama:whitepaper PBX installations Market movement in detail

ama:whitepaper PBX installations Market movement in detail

The big winner is Cisco with strong gains in the PBX business In the period from March to October 2011, information provider ama interviewed 5,000 users on the purchase of telephone private branch exchanges (PBX) and found that companies are clearly very willing to change providers. Of 582 new installations, only 108 came from the same provider. Accordingly, there were 474 migrations to another manufacturer. Cisco benefitted the most from this great readiness to change. In contrast, the manufacturer Avaya surprised with the biggest losses compared to its total share of PBX installations in Germany. As specialist in the information and telecommunications market for almost 20 years, today information provider ama has access to more than 43,000 ICT profiles of German user companies. ama relies on exact figures, not estimates The data of the profiles, which also includes information on the ICT landscapes of the users, has been the basis for dedicated market analyses since 2011. That currently makes ama one of the few providers in Germany that can follow the migration fluctuation between manufacturers or different products in detail. ama updates its ICT profiles regularly with the information obtained in interviews regarding changes in the current ICT portfolios of the user companies. The interviewees are usually those responsible for ICT in the user companies. This means that ama is not dependent on estimates and calculations of market shares or percentage of sales of the different manufacturers, as is usually the case with market analyses, but rather relies on absolute numbers for the analysis. The company published a market analysis on installed storage systems in December 2011, which will be followed by the results on the subject of antivirus in February 2012. The market analysis on the ICT sub-segment of PBX telephone equipment prepared in January 2012 is based on interviews that ama conducted in the period from March to October 2011 with a total of 4,956 companies that have more than 50 employees. This figure includes 3,312 companies with more than 100 employees. The ICT decision makers interviewed are responsible for a total of 4,985 PBX installations. 2ama:WhitePaper

PBX market shows only moderate momentum After the telecommunications market in Germany decreased around 0.7% in 2011, Bitkom industry experts anticipate only a negligible growth of 0.4% for the coming year. The subdued growth can be attributed to a loss of 7.5% in fixed network voice services and a loss of 6.5% in mobile voice services. The increase of 14% in mobile data services and 1.2% in fixed network data services counteracted a collapse of the market in the TELEKOMMUNIKATION MOBILE ANTIVIRUS CLOUD SERVER CRM ERP GROUPWARE VIRTUALISIERUNG BETRIEBSSYSTEME STORAGE DOKUMENTEN-MANAGEMENT past year. PBX installations, whether IP or ISDN based, are a special market, in which equally little impetus for growth can be expected. Market researchers at Canalys in Great Britain have detected a market decline in Western Europe of a little more than 6% for the second quarter of 2011. According to Canalys, the dominant manufacturers are Cisco, Alcatel-Lucent, Siemens, Avaya and Aastra, whose respective market share in Europe is more than 1% each. MZA, another British market research institute, sees yet another market participant leading in Germany precisely in the area of small and medium-sized companies. Swyx, the Dortmund-based company, is getting in on the act in a big way with a market share of 27% in the area of IP extensions of 11 to 50 connections. The trend towards IP or software-based telecommunication systems is good for the manufacturer. Companies are increasingly trying to manage the different communication channels together, internally as well externally, with the goal of becoming more efficient and reducing costs. In this regard, software-based and virtual telephone systems play a significant role since they only require the appropriate terminal equipment and can forego an independent telephone system installation. For this reason, the virtual systems are also of interest for the traditional software providers, like Microsoft or IBM. These manufacturers are now causing quite a stir in the market. Cisco or smaller providers like Swyx also have a good chance in this market. 3ama:WhitePaper

Willingness to switch PBX systems high among users The survey that ama conducted with ICT decision makers in companies and government agencies indicates that the European market leaders also play an important role in Germany. The respective migration analyses showed that Siemens dominates the market for installed PBX systems with 38.6% (see Chart). In second place was Alcatel- Lucent (17.5%), closely followed by Avaya (15.9%), Aastra (9.0%), Telekom (6.7%) and lastly by Cisco with a share of 4%. 4ama:WhitePaper

Established PBX providers suffer migration losses The migration to other manufacturers, which ama ascertained in the survey, took place a maximum of one to one a half years before the survey period. Thereby, only Cisco, Alcatel and Aastra could generate gains due to migration. Manufacturers Avaya, Siemens and Telekom had to face some substantial migration losses (see Chart). Based on the total number of installations established by ama, Avaya had the greatest losses. Net losses totalled 6.3%, with Siemens they came to 3.4% and with Telekom to 1.5%. Cisco gained an enormous 32.2%, Aastra 5.1% and Alcatel at least still 3.4%. 5ama:WhitePaper

Barely any movement for the smaller manufacturers A consolidation in favour of the market leaders in the German PBX market does not show the migration analysis. In fact, the smaller manufacturers gain even if only a few with three installations from the major ones (see Chart). In the end, Avaya, in particular, loses a total of ten (10) systems to the group of smaller manufacturers. In contrast, Alcatel-Lucent gains a net of nine (9) systems (see also page 9). 6ama:WhitePaper

Market leader Avaya loses installations In terms of absolute numbers, Siemens had the greatest losses with a net of 66 lost installations. The market leader lost more installations to all the other manufacturers than it was able to gain (see Chart). As a result, Cisco (26), Alcatel (32) and Aastra (20) had the most gains. Only with respect to the smaller manufacturers is there a relatively balanced ratio. Siemens Enterprise Communications, for instance, has gotten a great deal of competition from the actual IT networking companies, like Cisco or smaller providers, like Swyx. The rapid changes to next-generation private branch exchange systems could be a reason for the high absolute losses. In the meantime, large and medium-sized companies are also starting to transport data and voice services through the same, often IP-based network or they already have plans to do so. For this reason, they no longer invest in traditional private branch exchanges, but rather increase their involvement with pure IP PBX or hybrid systems. 7ama:WhitePaper

Avaya suffers strong losses Surprisingly, in terms of absolute numbers, Avaya is the second biggest loser after Siemens (see Chart), which in comparison to its size in the PBX market, is even the provider with the greatest losses. Only from Siemens did Avaya win more customers than it lost. According to ama, all the other major manufacturers even had to accept installation losses Avaya loses 18 customers to Alcatel, 16 customers to Cisco and another 15 to Aastra. For four consecutive quarters, Avaya has been the international market leader and with around 25% of sales worldwide is even ahead of Cisco; therefore the losses are difficult to understand. This could possibly be attributed to the rather weak channel revenue in this country. Avaya realises 90% of its turnover in Europe through partners, whereas historically, in Germany it is only 50%. 8ama:WhitePaper

Telekom puts up a good fight Telekom also has to cope with a slight decrease of 1.5% for PBX installations. In terms of absolute numbers, the difference between gains (+38) and losses (-43), however, is not as serious as with Siemens or Avaya (see Chart). With Telekom, the reason for the declining PBX business can be attributed to declining cross selling opportunities. Before the deregulation of the market and before the convergence trend to IP Nets, Telekom had no competition to speak of in the voice network market. Therefore, it was only natural to also order the exchange equipment from Telekom. The convergence trend to IP networks on the one hand and the trend to voice over IP (VoIP) and unified communications (UC) on the other made Telekom one provider among many. 9ama:WhitePaper

Alcatel-Lucent is well positioned ama s migration analysis shows that as the second largest PBX provider, Alcatel- Lucent achieved a marked increase (see Chart). There were 73 new installations and 43 migration losses. Most of the gains for Alcatel-Lucent come from Siemens (32) and Avaya (18), as well as other, smaller providers (15). Only to Aastra (-9) and Cisco (-4) did Alcatel-Lucent lose more than it gained. Alcatel-Lucent is well positioned in the key account business and together with carriers like Vodafone, for instance, Alcatel offers successful UC solutions for small and medium-sized companies. 10ama:WhitePaper

Aastra records significant growth Aastra could also show gains (+23). Compared to the inventory of already installed PBX systems, this represents a growth of 5% (see Chart). Most of the migration was actually only to Siemens and Cisco, as well as to smaller providers. The large acquisitions in the past few years are obviously paying off for the Canadian company. The European shopping tours of the Canadian company began in 2003; back then it started with the PBX division of the Swiss company Ascom. The tour continued in 2005 with the telecom area of EADS and DeTeWe in Germany. The tour ended with the enterprise communication division in 2008. The product offerings, like Aastra MxOne, are extremely mature technically and interoperable. 11ama:WhitePaper

Cisco records massive gains With a share of 4% of installed PBX systems in German companies with more than 50 employees, Cisco is the smallest manufacturer according to the results of ama s survey. However, Cisco came out ahead in the migration analysis (see Chart). No losses, but 65 new customers speaks for itself. Compared to the existing customers, that represents an increase of 32.2%. The biggest losers understandably deliver most of the gains: Siemens (+26) and Avaya (+16). That Cisco has set itself apart so remarkably may especially have to do with the following factors: a broad product range which is considered to be technically superior, its credibility with regard to convergent networks and the large, loyal partner network. With it, the company can convincingly offer unified communication and unified collaboration strategies. 12ama:WhitePaper

Information regarding the data source: ama has been conducting surveys on the IT structures of ICT user companies for almost 25 years, which ICT provider companies in particular, can use for marketing and sales support. The resulting basis consisting of around 43,000 profiles are used by us at ama for analytical purposes and with it make a valuable contribution to market transparency. The findings from a total of 4,956 telephone interviews conducted in the period from March to October 2011 are incorporated in the PBX telephone equipment market analysis. Imprint: Legally responsible for media content: Axel Hegel ama Adress- und Zeitschriftenverlag GmbH Sperberstr. 4 68753 Waghaeusel Telephone: +49 7254 9596-0 Telefax: +49 7254 9596-300 E-mail: wp@ama-adress.de Internet: Managing Director: Axel Hegel Registration number: HRB 250861 Registration court: District Court of Mannheim VAT identification number: DE 201 399 591 Editorial department and text layout: On behalf of ama Adress- und Zeitschriftenverlag GmbH 4P Marketing Group Baumeister+Partner Beratende Betriebswirte Von-Nesselrode-Weg 37 51491 Overath Editor in charge Gerhard Baumeister Member of: Deutscher Presse Verband e.v. Telephone: +49 2206 8528-40 E-mail: gbaumeister@4p-marketing.de Internet: www.4p-marketing.de 13ama:WhitePaper

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