Nortel Enterprise IP Telephony PBX Life Cycle Report, October/November 2005

This study reviews Nortel's IP PBX products, including the Business Communications Manager, Communication Server, IP Gateways Remote Office, and Multimedia Communication Server product lines, and provides a residual value forecast. It includes an equipment overview, a review of secondary market trends, a future outlook, and essential guidance for organizations involved in the purchase, sale, or investment management of these systems.

The enterprise PBX telephony market is well along in its transition to IP telephony, a technology that uses Internet Protocol's architecture to exchange voice, fax, data, and other forms of information through standard LAN network infrastructure instead of via dedicated, circuit-switched connections. The new technology promises to reduce cost and complexity, but requires that most equipment be replaced. As we move through the transition, customers, manufacturers, lessors, and resellers will need to demonstrate careful investment planning, especially beyond 2010. IDC estimates that 60% of new PBX shipments will be IP based by 2009.