T3i Group Study Finds Enterprises Cutting Spending on Unified Communications in 2008, but Expanding Future Plans

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More than 60% of U.S. enterprises are implementing, trialing or planning to implement Unified Communications (UC) applications. However, due to cutbacks in IT spending, about one-quarter of these enterprises report making significant changes in their implementation plans of IP Telephony and UC applications this year.

According to a recent T3i Group primary research study of enterprise market demand for Unified Communications, 65% of enterprises in the U.S. are implementing, trialing or planning to implement Unified Communications (UC) applications. However, due to cutbacks in IT spending, about one-quarter of these enterprises reported that they had made the following significant changes in their implementation plans of IP Telephony and UC applications for 2008:

                                                                                 IP Telephony             UC Apps
­>>Implementation plans are now on hold         6%                             7%
>>­Major reduction in implementation plans     18%                             16%

"Despite these cutbacks in 2008 spending, the enterprise decision-makers were actually more optimistic about their implementation of UC applications in the future," commented Terry White, Senior Program Director at T3i Group, who conducted this study. He continued, "In our 2008 survey, U.S. enterprises expected equal or higher attach rates in 2012 for 6 out of the 8 UC applications, compared to our 2007 survey results." Attach rate is the percentage of IP Telephony shipments that includes a specific UC application.

The study, published by T3i Group's InfoTrack division, analyzed the market demand of almost 200 enterprises (defined as businesses with 500 or more employees) for the following eight categories of UC applications:

Category / Application Example:
Unified Messaging / Avaya's Modular Messaging            
­UC Client / IBM's Lotus Sametime
­Mobile UC Client / Microsoft's Mobile Office Communicator
­Voice over Wireless LAN / Siemens' HiPath Mobile Connect
­Real Time Audio Conferencing / Mitel's Quick Conference
­Web Conferencing / Cisco's Unified MeetingPlace
­Desktop Videoconferencing / Avaya's Video Telephony Solution
­IP Contact Center / Alcatel-Lucent's OmniGenesys Contact Center.

For medium-sized enterprises (500 to 1,000 employees) the UC application that had the highest increase in attach rates was Web Conferencing. Among large enterprises (1,001 to 10,000 employees) the biggest advance in attach rate was for Desktop Videoconferencing. Very large enterprises (over 10,000 employees) projected that Unified Messaging would show the largest attach rate gain in 2012.

This UC research study also identified patterns of phased deployment. Enterprises are implementing Unified Communications in the following three phases:

­>>System-centric - implementing IP Telephony based on hard savings with a focus on attributes such as reliability and security            

>>­Application-centric - implementing UC applications with a focus on business value derived from productivity savings
>>Process-centric - implementing UC applications based on business process improvement through communications-enabled business processes.

"Both U.S. and international enterprises are optimistic about their progression to the more advanced phases," White noted. "Enterprise decision-makers clearly believe in the potential value of UC applications, but many are expecting their IP Telephony and UC Apps vendors to help them identify the best opportunities for realizing this potential value."

The complete results from this study are contained in a 77-page report entitled" InfoTrack for Unified Communications: 2008 Enterprise Market Analysis."

About the InfoTrack for Unified Communications (IUC) Program:
The InfoTrack for Unified Communications (IUC) program conducts several comprehensive, primary research studies each year that separately analyze and forecast enterprise and small/medium business (SMB) demand for IP Telephony and eight Unified Communications applications. The program also evaluates the impact of major market disruptions, such as the entry of Microsoft into the Unified Communications market. For more information about the IUC program or this report, please visit http://www.telecomweb.com/iuc2008enterprise/ or contact Susan Hobart, shobart @ telecomweb.com or 973/602-0127.

About T3i Group LLC:
T3i Group LLC provides market research, data, analysis, and consulting and advisory services to the telecommunications industry. It has clients in 46 countries and conducts its business through four operating units: InfoTrack, which publishes reports that analyze shipment, revenue, market share and other pertinent data of importance to telecommunications equipment manufacturers; TelecomTactics, which maintains a database of the features and functionality of major telephony systems; Tarifica, which maintains a database of pricing-related information covering 400 telecommunications carriers operating in 130 countries; and TelecomWeb (http://www.telecomweb.com), which is a content provider with an editorial staff that authors and posts telecommunications-industry news stories every business day. The site also serves as T3i Group's primary delivery mechanism for distributing its reports, analyses and data to subscribers.

T3i Group LLC is headquartered in Parsippany, NJ, with additional offices in New York City, London, England and Cherry Hill, NJ.

Press Contact:
Debra Baker
dbaker @ telecomweb.com


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