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Sonus Networks, Biggest Sequential Revenue Gain for eSBC Market during Q1

June 13, 2014

Sonus Networks saw the biggest sequential revenue gain of any vendor during Q1 0f 2014 in the Enterprise Session Border Controller (eSBC) market, according to a new study.

Still, Infonetics Research found in the study that Cisco (News - Alert) remains at the top of eSBC market – despite the revenue gains seen by Sonus.

The study from Infonetics follows the forecasts, share and size of the eSBC market. It also follows eSBC session shipments and revenue numbers from top vendors.

“Cisco notched another quarter at the top of the enterprise session border controller (eSBC) market share leaderboard, turning its commanding position in enterprise voice and data solutions into an advantage as it sells its eSBCs,” Diane Myers, principal analyst for Voice over Internet Protocol, Unified Communications and Instant Messaging Service at Infonetics (News - Alert) Research, said in a statement.

“There were no major shake-ups among the other leading vendors—AudioCodes, Dialogic (News - Alert), Ingate, Oracle, and Sonus—in terms of positioning, though Sonus put up the largest sequential revenue gain of any vendor in the first quarter of 2014,” Myers added.

In total, worldwide eSBC revenue was $60.3 million in Q1. That is a 1 percent increase sequentially from the prior month. However, when comparing Q1 2014 and Q1 2013, it translates to a 9 percent drop, according to data from Infonetics.

On the other hand, Infonetics Research (News - Alert) predicts that the global eSBC market will increase to $433 million in 2018. Looking back, the eSBC market increased 42 percent in 2013.

As far as the most successful regions, North America continues comes out on top for the eSBC market. In fact, it was the site of more than three-quarters of eSBC sales during the recent quarter. It was also found that businesses in other regions, especially in Europe, “are accelerating adoption of SIP trunking, which will positively impact eSBC sales outside of North America over time,” Infonetics Research said in the statement.

The study also shows that businesses with between 101 and 5,000 employees represented the biggest segment of eSBC sessions during the recent quarter. Additionally, the average revenue per session for eSBCs was $29, which is lower than the amounts for traditional VoIP-TDM gateways.

Other relevant data included in the report were: Unified Communications (News - Alert) increased 27 percent compared to 2013; the PBX market “continues to take hits;” 8x8 was first in hosted UC; Verizon, XO and AT&T were at the top in IP connectivity; VoIP and UC services are predicted to jump to $88 billion by 2018; and video conferencing and collaboration had the most growth among UC apps.

Edited by Maurice Nagle

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