Enterprise Use of IP-Based, In-house Communications Increasing

Corporations are deploying Internet-based, in-house telephone systems at a pace that's moved the market well beyond the testing stage, a market research firm said Thursday.

While businesses are unlikely to upgrade their traditional circuit-switched systems, they are opting for more IP-PBX components in nearly all new deployments, ABI Research said. PBX, or private branch exchange, is an in-house telephone switching system that interconnects telephone extensions to each other as well as to the outside telephone network.

By 2006, more than 90 percent of all new IP-PBX seats will be on all IP-systems, according to ABI. The number of IP-PBX seats is expected to reach 26 million in 2009 from 3.2 million last year.

"IP-PBX feature sets have stabilized to the point where most vendors now have the legacy features that business users are accustomed to, as well as a relatively standard set of more data-centric applications," ABI analyst Julia Mermelstein said in a statement. "Future product development will focus on improving ease of management and customization for specific vertical markets."