Cisco’s ongoing retrenchment in its core markets looks like it may need a boost when it comes to enterprise telephony systems. The communications giant has lost market share in the IP telephone market to Avaya in the last few quarters, much like Aruba is eating Cisco’s lunch in the Wi-Fi equipment market.
Cisco may have stopped focusing on core markets and let interlopers take ground, but when it comes to the PBX and corporate telephony market the global economic malaise didn’t help. According to data out today from Telegeography, revenue from enterprise telephony equipment sales has fallen by 4 percent during the second quarter of 2011 when compared to sales for the same period last year. Those sales include PBX/KTS systems revenues, voice gateways and IP telephony.
Cisco has kept its market share steady at 30 percent, while Avaya has gained 3 percentage points to hit 22 percent market share. However, in some areas Avaya has taken over Cisco’s top spot. From the survey:
By segment, the most notable shift in the 2011 vendor ranking is Avaya, which overtook Cisco as the market leader in IP telephony in Q1 2011, and continued to lead the market in Q2. NEC and Panasonic remain the clear leaders in the declining PBX/KTS segment, while Cisco dominates the voice gateway segment with a market share exceeding 80 percent.
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