LAN Telephony to Become Network Architecture of the Future

Local-area network-based telephone systems spell the end of the private branch exchange (PBX) in the traditional office setting. Cahners In-Stat Group believes that LAN telephony will be the dominant enterprise architecture by 2004. The Scottsdale AZ-based high-tech market research firm believes that the technology, which combines data networking equipment such as Ethernet, routers, and hubs, with a telephony application server to transmit voice in the office, will be a hot new industry.

"LAN telephony is the ultimate convergence of voice and data and it will become the network of the future, integrating all data applications with the telephone," said Brian Strachman, industry analyst for In-Stat Group. "This will be a whole new way to get phone calls in the office and it will all be done using the same system with which the data network functions. This will allow for lower overall costs and amazing new applications that integrate data applications with the telephone."

From their LAN telephony research, In-Stat believes:

The features, applications, and ultimately the pricing of LAN telephony will ultimately result in the demise of PBX systems. IP packets will rise over Ethernet technology due to its openness and ubiquity. Benefits will include: complete handset and extension portability to remote locations, integration with contact management software and worldwide IP based contact centers. Following interoperability between vendors, eventual retail of packet handsets to consumers will occur causing the industry to ignite.

The In-Stat report, LAN Telephony: The Future of Enterprise Voice, #CT0001CT, discusses LAN telephony, the technology and market opportunities for the technology in today's networks. The report examines how PBX, communications server and networking industries will react to the new technology. Preliminary market share, a five-year market forecast and profiles of the current leading vendors and those likely to enter the market are also provided.

For more information, contact: Brian Strachman, industry analyst, 480-483-4454, bstrachman@instat.com

Edited by John Spofford