Tuesday, March 8, 2005

VON Keynote: The Impact on the Enterprise

Corporations have recognized IP communications is a driver of greater productivity, said Micky Tsui, VP and GM of Avaya's Communication Systems Division, in a keynote address at VON Spring in San Jose, California, and the sales number reflect this trend. IP telephony spending over the past year has been growing a phenomenal 88% annual grow rate. IT spending overall is at about 5%, while the overall GDP growth rate is about 4%.

Based on multiple analyst reports, Avaya believes these trends will accelerate in the years ahead. Tsui presented the following figures for reference:

Worldwide IP Line
2000 700,000
2003 700,000
2004 17.0 million
2007 39.6 million

IP telephony in the enterprise is already mainstream. 2005 will be the inflection point where IP port shipments exceed TDM port shipments for the first time.

Tsui said IP-based productivity gains are often easy to measure in many professional services, such as insurance form claims - where Avaya has seen one of its customers reduce the time to process insurance claims drop 5 days to under two hours.


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