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Open source telephony - is it disruptive or an evolution?


LONDON – 1 July 2008 – Open source telephony is gradually gaining traction in Europe due its cost advantages over proprietary IP PBX and call centre products. Frost & Sullivan's analysis shows that the cost of an open source telephony 'line' can be up to 40 per cent less than an averagely priced IP PBX/Communication Manager. Total cost of ownership (TCO) comparison indicates a similar picture, with the cost benefits far greater in a call centre environment and in settings where the proportion of 'professional services fee' is higher.

New analysis from Frost & Sullivan (http://www.enterprise.frost.com), European Open Source Telephony Market, finds that the market shipped more than 74,000 lines in 2007 and estimates this to reach 1.95 million in 2013.

Frost & Sullivan studied a number of 500+ extension deployments in the open source telephony markets. Some of them included complex integration, while others were across numerous sites distributed across continents. These deployments are testimony of the capabilities of the technology and the expertise of the people supporting it.

“Our research finds that many of the open source telephony vendors have been enjoying a very high growth rate,” notes Frost & Sullivan Research Analyst Dorota Oviedo. “Several notable open source telephony vendors are investing in the European market and 2008 will be dominated by channel activities, especially channel recruitment and training. Established participants will be investing to expand their footprint mainly through distribution.”

Nevertheless, mindshare and user acceptance of open source telephony is relatively low at present. Open source telephony vendors face a huge challenge in competing against participants that use proprietary technologies. These vendors benefit from their well-established (legacy) market position, brand image, strong distribution network and strong relationship with the customer base.

“The biggest challenge that the open source market has been facing and gradually overcoming is the issue of negative market perceptions,” says Oviedo. “Open source projects are relatively young and thus, struggle with market concerns and perceptions of lack of support, scalability, functionality or reliability.”

Open source telephony vendors should invest in building awareness through site visits, publishing success stories, and so on. Research suggests that once prospects overcome the initial reluctance and run a test system, success rate for open source telephony deployment is relatively high.

If you are interested in a virtual brochure, which provides manufacturers, end users and other industry participants with an overview of the European open source telephony market, then send an e-mail to Joanna Lewandowska, Corporate Communications, at joanna.lewandowska@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, an overview will be sent to you by e-mail.

European Open Source Telephony Market is part of the Enterprise Communications Growth Partnership Service programme, which also includes research in the following markets: business telephony, telephony endpoints, peer-to-peer telephony, mobile enterprise, and unified messaging. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership™ empower clients to create a growth-focused culture that generates, evaluates and implements effective growth strategies. Frost & Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost & Sullivan’s Growth Partnerships, visit http://www.frost.com.

European Open Source Telephony Market
M287-62

Contact:
Joanna Lewandowska
Corporate Communications – Europe
P: +48 22 390 41 46
E: joanna.lewandowska@frost.com


Publisher Contact Information:

Frost & Sullivan
+48 22 390 41 46
joanna.lewandowska@frost.com

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