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Report: PBX Most Used By Small Businesses

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May 14, 2008

Report: PBX Most Used By Small Businesses

By Michael Dinan, TMCnet Editor

Smaller organizations use telephony equipment more than any other size business, a new report says.
According to Infonetics Research’s (News - Alert) “Enterprise Telephony by Organization Size,” PBX sales will grow at small businesses over the next four years at a higher rate than at micro, medium or large-sized companies.

According to Matthias Machowinski, directing analyst for enterprise voice and data at Infonetics Research, small organizations are more prevalent than other sizes, especially in Europe and Asia, so they naturally make up the bulk of Internet protocol and private branch exchange spending.
“In addition, they have high birth rates, a prime driver for PBX (News - Alert) sales, which is fueling future growth,” Machowinski said. “The story is different in North America, where large organizations dominate. Organizations here are almost three times as large as in Europe. But the growth opportunity for large organizations is in EMEA (Europe, Middle East and Africa), APAC (Asia Pacific), and CALA (Caribbean and Latin America), as they seek economies of scale, and capitalize on trade opportunities.”
A “Private Branch eXchange” is a telephone exchange that serves a particular business or office, as opposed to one that a common carrier or telephone company operates for many businesses or for the general public. The systems make connections among the internal telephones of a private organization – usually a business — and also connect them to the public switched telephone network through so-called “trunk lines.”
The Infonetics report finds that medium organizations represent the second largest customer opportunity in the enterprise telephony market. Some of those are expanding rapidly, according to the report, while others mature with predictable and consistent expenditures.
In North America, more than one-third of all IP PBX and TDM (time division multiplexing) equipment revenue is derived from large organizations, the highest portion in any region, according to the report. The report also finds that TDM systems are bought in disproportionately large numbers by micro and small organizations.
To purchase a full copy of the report, contact Infonetics’ Larry Howard at or (408) 583-3335.
Michael Dinan is a TMCNet Editor. To read more of his articles, please visit his columnist page.
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