Avaya on top? $475M for a 3% edge

UK-based analyst firm MZA recently publicized a global PBX market report crowning Avaya as the new leader, thanks to its acquisition of Nortel Enterprise Solutions:

Avaya continued to lead the world PBX market, growing market share from 13% in Q1 2010 to 15% in Q2 2010. Its leadership position was first attained as a result of the acquisition of Nortel. Cisco was in second position with a stable 12% market share while Panasonic moved from fourth position in the last quarter to third position in this, maintaining its 11% share. Panasonic continued to lead in the Below 100 Extensions sector with a steady 16% market share, ahead of NEC in second position and Avaya in third position. In the Above 100 Extensions market, Cisco was the market leader with a 24% market share, followed by Avaya.

It’s neck-and-neck between Avaya and Cisco. However, Cisco leads in the 100+ extensions market with nearly a 1/4 stranglehold on the market. Additionally, Cisco maintains its lead in IP extensions — 1/3 of the market, ahead of Avaya by over 10%. The IP segment is what’s growing.

Avaya’s lead of 3% is indeed noteworthy, but more noteworthy is that it’d spent almost half billion dollars to gain that small market edge. That’s no pocket change. Only to step on Cisco’s pinky. In a technology segment that’s shrinking.

To me that is a bit troubling. Maybe it’s time to abandon that tablet thingy? Resources could definitely be allocated elsewhere…


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