The Cloud is Hurting PBX Sales

Rich Tehrani : Communications and Technology Blog - Tehrani.com
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The Cloud is Hurting PBX Sales

In case there was any doubt about the success of cloud-based telephony growing at the expense of customer-premise-equipment or CPE, the latest research out of Dell’Oro Group should serve as a wake-up call. Alan Weckel, Vice President of Enterprise Telephony research at the company had this to say, “If you look at 8x8, RingCentral, and Shoretel's acquisition of M5, combined they experienced growth in excess of 15% compared to 2Q12.”

ShoreTel has certainly been a visionary in the communications market – they were nimble enough to come up with a cloud solution which they purchased from M5 and are rapidly growing this part of their company as you can see from the research above.

Ben Irvine, the VP of Operations at the company’s cloud division recently told me 20% of customers are asking for cloud-based solutions off-the-bat according to the company’s partners.

He went on to say the company recently added a new data center in Chicago since the acquisition and will soon be consolidating five data centers to a total of two – the locations haven’t been decided as of yet.

We spent a bit of time discussing the the years of experience possessed by new CEO Don Joos who I hope to catch up with soon.

Regarding the report referenced at the top of this piece, I have reached out via LinkedIn and email and am waiting for Dell’Oro to get back to me regarding how much the Enterprise PBX market has shrunk YoY and how much the UC market has grown. I will update this post as soon as they respond.



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