Well, maybe the PBX term is dead. Maybe, going forward, we will be referring to the platforms delivering PBX functionality as “communications systems” or “UC solutions” or something else.  But it is just funny how industry pundits frequently seek a sensational effect by using strong terms like “death” and “extinction” to refer to certain aspects of technology evolution. The reality is – market trends take a long time to mature and legacy technologies just don’t disappear over night. We were quick to “bury” the TDM PBX some ten years ago, but TDM line shipments, lo and behold, account for an impressive 25% of total line shipments today.

I was reading my colleague Alaa Saayed’s upcoming study World Enterprise Telephony Platform and Endpoint Markets and the following excerpt made me smile so I thought I would share it here.

•Just like in 2009 many observers prematurely pronounced the death of IP desktop phones, today, the same group of people is predicting the impending death of premises-based telephony platforms.

•Our findings show that the premises-based telephony platform market is still very much alive and displaying sizeable growth rates in terms of both shipments and revenue across the world.

•Although Frost & Sullivan recognizes the relentless advancements in communication technologies that are, today, allowing businesses to choose from multiple deployment and architectural options for enterprise telephony, including hosted and cloud-based technologies, premises-based solutions are still the most popular and dominant type of architecture among businesses of all sizes and verticals. The unfamiliarity with other technologies, the uncertainty about the benefits offered by the new delivery models, and the potential risks associated with decommissioning and/or replacing existing solutions are some of the main reasons why businesses continue to choose premises-based systems.

•Instead of the death of the premises-based telephony platform market, Frost & Sullivan prefers to talk about the death of the “PBX” terminology and the continuous transformation of communications architectures. In fact, since the introduction of enterprise IP telephony technologies around a decade ago, the traditional PBX platform has been completely re-designed, enhanced and re-purposed for the ultimate benefit of the customer. The multiple “boxes” required to support an enterprise-grade communications architecture in the past have been condensed into a smaller number of multi-purpose servers. The market has shifted from hardware-centric solutions to software-based, application-centric solutions. The call-control component of the PBX (practically, the heart of the PBX) has been extracted, in many cases,  and modified into a software application that can run on any third-party standard servers or treated as a virtualized application in a virtualized data-center environment. Finally, the IP PBX functionality is increasingly becoming just one of several applications in a comprehensive unified communications solution/bundle.

•While all these technological advancements have certainly transformed the communications marketplace, from large, isolated, proprietary cabinets to easily distributable low-cost, space-efficient, rack-mountable chassis equipment (servers for call control and media gateways for port interfaces), this evolution should not be misconstrued as the death of enterprise premises-based telephony.

The study will be published within the next few weeks on Frost & Sullivan’s Enterprise Communications portal.