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Report: Conferencing the Only UC App Category to See Revenue Growth in First Quarter


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June 18, 2009

Report: Conferencing the Only UC App Category to See Revenue Growth in First Quarter

By Gary Kim, Contributing Editor

Conferencing applications were apparently the only unified communications applications to see sales grow in the first quarter of this year.

According to a recent report from Synergy (News - Alert) Research Group, conferencing revenues grew seven percent in the first quarter, quarter over quarter, though virtually every other UC application category experienced a sales decline.

Conferencing application sales grew at a five percent rate in the fourth quarter of 2008. Conferencing (Web, video and audio) still shows good growth, as corporations continue to spend on technologies that are perceived to have relatively short-term returns on investment and a positive effect on employee efficiencies.
Demand for managed service offerings increased in the first quarter, in part because of credit constraints, Synergy says.
According to the report, the worldwide market for collaborative applications in the first quarter of 2009 amounted to $913.3 million in sales. That refers to sales of network-based applications such as UC desktops, presence management, instant messaging, desktop Web/video/audio conferencing, unified messaging and mobile applications.
UC Desktops have grown the most, the report finds. Synergy defines a UC Desktop as a user workspace having access to voice telephony (PBX (News - Alert)/KTS/dial tone) and integrated presence management and instant messaging capabilities.
“We believe those vendors that are in a strong strategic position, such as Avaya, Alcatel-Lucent, Cisco, Siemens, ShoreTel and Mitel (News - Alert), are in good shape to weather the present business environment and provide a strong UC migration story,” said Jeremy Duke, Synergy CEO, in a statement. “Those vendors that are more exposed and are displaying challenges with market share progress and in addressing other significant industry issues, include 3Com, Aastra, Nortel, NEC, and Toshiba (News - Alert).”

In the small business segment (150 lines or less), “ShoreTel continues to grow its UC offering and carve a leadership position in the market in the face of significantly larger competitors,” added Ken Landoline, Synergy VP.

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

Edited by Patrick Barnard

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