PETERSON: PLENTY OF UPSIDE TO THE NUMBERS

August 2, 2005

There was no shortage of numbers provided by Don Peterson this morning in New York.

The Avaya chairman/CEO discussed the business communications applications market and provided a 2006 estimate of the global market: $30 billion.

Even more impressive was the projected 20 percent compound annual growth rate between 2005 and 2008.

Software constitutes $13 billion of the total and includes the following segments: contact center (26 percent); IP telephony (19 percent); e-mail (14 percent); UC, messaging (12 percent); collaboration (3 percent); conferencing (11 percent); and converged clients (15 percent). The $17 billion services sector includes: hosted (8 percent); consulting (35 percent); implementation (21 percent); and support (35 percent).

He also mentioned the skyrocketing number of IP lines shipped, which stood at 18.3 million last year and is projected to reach 47.2 million by 2008.

Also discussed was 2005 representing the tipping point in the speech applications market, with IP telephony overtaking traditional telephony.

By Glenn J. Kalinoski, Executive Editor, Customer Inter@ction Solutions