Table of Contents

IP Channel Strategies - Detailed assessment of IP trends, vendors and channel strategies with market sizing from 2005-8 for Western Europe, by country & vertical market.

Product Code: dmtc1155

Publication Date: 15-Jul-2005

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Overview

Introduction

IP represents a substantial opportunity not only for IP vendors, but also for their broader ecosystems including: service providers (SPs), value-added resellers (VARs), systems integrators (SIs), independent software vendors (ISVs) and networking vendors. It is these broader ecosystems that will help end-users realize IP's true value.

Scope

· Explores IP vendors' partner ecosystems and how these support systems can provide differentiation in what is a relatively commoditized space.

· Offers comprehensive strategic assessments of major vendors and market sizing through 2008.

Report Highlights

As Western European IP solution revenues grow from $1.98bn in 2005 growing to just under $2.6bn by 2008, horizontal & vertical applications will play an increasingly significant role in boosting uptake. Mobility, security & contact center applications will all play a big role. As will vertical applications around FS, public sector & manufacturing.

•IP solution revenues will account for $1.98bn in 2005 growing to just under $2.6bn by 2008, in Western Europe.

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Reasons to Purchase

· Detailed assessments of IP vendors' strategies, exploring their ecosystem mix between SIs, VARs, SPs, ISVs and data networking firms.

· European IP market trends and sizing by country and vertical market to 2008.

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CHAPTER 1 EXECUTIVE SUMMARY	3
Introduction	3
Market context	3
Competitive dynamics	5
CHAPTER 2 INTRODUCTION	14
What is this report about?	14
Who is the target reader?	14
How to use this report	15
CHAPTER 3 MARKET CONTEXT	16
Introduction	16
Key findings	16
Migrating to IP-PBX telephony	17
The migration benefits whole new partner ecosystems	18
Incumbents will have a short-term advantage	18
Technology definitions - the changing face of network protocols	18
Three distinct VoIP deployments	19
Telephony systems in the enterprise	19
Traditional PBX systems	20
Pure IP and IP-enabled solutions	20
IP-PBXs	20
IP-enabled PBXs	21
Which protocol will win? SIP vs H.323	22
H.323 will fade	22
SIP is gaining traction	22
IP phones	22
Dual mode handsets are a substantial opportunity	23
Softphones	23
PBXs will continue to be phased out	24
...And IP will continue to take PBXs' place	25
From trial to full implementation	25
But IP still has its impediments...	26
Why vertical focus will be a key differentiator in the IP game	30
Appropriate partnerships help vendors to tailor solutions for greater value	31
Relative degree of vertical focus: Cisco leads	33
How fast is the change to IP happening?	34
The US continues to outpace Europe	34
A gradual shift from PBX to IP	35
The UK leads in IP uptake followed by Germany	36
IP-enabled PBX revenues still dominant across Europe	37
Manufacturing, financial services & retail will be key targets	38
Financial services	39
Retail banking	39
The trading floor	40
Public sector	40
Local government	40
Healthcare	40
Manufacturing	41
Retail and wholesale	42
CONCLUSION	42
CHAPTER 4 COMPETITIVE DYNAMICS	44
Introduction	44
Key findings	44
Competitor identification	45
The "traditional" contenders from voice and data	45
Traditional PBX manufacturers	46
New-wave IP LAN manufacturers	46
Co-opetition from new quarters	46
How the enlarged IP ecosystem is taking shape	47
SIs and VARs: partnerships vary by geography and customer size	50
Service providers: unsurprisingly incumbents favor their own	52
Application partners: a mixed bag	53
Open standards enable truly multimedia applications	54
ISV relationships help to provide greater competitive differentiation	55
ISV programs are becoming more centralized, but maintain local flexibility	55
ISV partners of all sizes play an essential role in IP ecosystems	56
ISV incentivization programs vary	57
CRM, call recording and unified messaging	58
Mobility	58
Storage	59
Security	59
Platforms & databases	60
IP vendors align with Microsoft, IBM and others	60
Platform support decisions grow in significance	61
Microsoft leads in terms of total # of ISV relationships	61
Networking vendors: a key component in TEMs' strategies	61
Siemens is most closely tied to networking companies	62
Avaya also has close networking relationships	62
"Other" vendors: a hodgepodge of partners to spice up the mix	63
Exploring individual IP vendors' strategies	63
Alcatel	64
Avaya	66
Cisco	68
Nortel	71
Siemens	73
Conclusions	76
CHAPTER 5 OPINION	78
Introduction	78
Key findings	78
Size matters: channel strategies will become more granular	79
SOHO (1-9 employees) and SMB (10-49 employees)	80
Who are they?	80
How do they buy?	80
What are the challenges going forward for targeting them?	80
SME 1 (50-249 employees) and low to mid SME 2 (250-499 employees in the band, but likely up to 400 in this segment)	81
Who are they?	81
How do they buy?	81
What are the challenges going forward for targeting them?	82
Upper SME 2 (250-499 employees in the band, but likely to be 400+ in this segment) and enterprise (500+ employees)	82
Who are they?	82
How do they buy?	83
What are the challenges going forward for targeting them?	83
Implications of increased granularity	83
Channel incentivization will become more fragmented	84
Implications of fragmented incentivization	86
The ecosystem is dead. Long live the ecosystem.	86
Implications of the changing ecosystem	87
"Frenemies": can SPs and SIs/ITOs get along?	87
Implications of reduced SI/ITO and SP friction	88
Conclusion: channel divergence is rife and essential	88
CHAPTER 6 APPENDIX	89
Definitions	89
Research methodology	91
Further readings	92
SPP writing team	92
How to contact experts in your industry	93
List of Tables
Table 1: Telephony revenues in Western Europe, 2005 - 2008 ($m)	36
Table 2: Telephony revenues in Western Europe, by country, 2005 - 2008 ($m)	37
Table 3: IP telephony revenues by industry in Western Europe, 2005-2008 ($m)	39
List of Figures
Figure 1: Increasingly fragmented channel incentivization	6
Figure 2: Typical IP-PBX network architecture	21
Figure 3: Business and technological drivers of IP	25
Figure 4: ROI scenarios for various types of IP deployments	29
Figure 5: Geographic variations in IP uptake: public sector	31
Figure 6: Selected leading FS ISVs across all applications	32
Figure 7: Selected leading government ISVs across all applications	32
Figure 8: Selected leading manufacturing ISVs across all applications	33
Figure 9: Relative degree of vertical focus assessment	34
Figure 10: Telephony revenues in Western Europe, 2005 - 2008 ($m)	35
Figure 11: IP telephony revenues by country in Western Europe, 2005	37
Figure 12: IP telephony revenues by industry in Western Europe, 2005	38
Figure 13: Sources of competition in the IP competitive landscape	48
Figure 14: How the major players interact within the IP ecosystem	49
Figure 15: SI and VAR IP partner ecosystem	51
Figure 16: Service provider partner ecosystem	53
Figure 17: Business benefits increase over time with IP	55
Figure 18: Application partner ecosystem	57
Figure 19: Networking vendor partner ecosystem	62
Figure 20: Other vendor partner ecosystem	63
Figure 21: Alcatel's IP partner ecosystem	65
Figure 22: Alcatel's channel mix	66
Figure 23: Avaya's IP partner ecosystem	67
Figure 24: Avaya's channel mix	68
Figure 25: Cisco's IP partner ecosystem	69
Figure 26: Cisco's channel mix	70
Figure 27: Nortel's IP partner ecosystem	71
Figure 28: Nortel's channel mix	72
Figure 29: Siemens' IP partner ecosystem	74
Figure 30: Siemens' channel mix	75
Figure 31: Vendors' comparative channel mix	76
Figure 32: Size segmentation granularity will increase; particularly in the mid-market	79
Figure 33: Increasingly fragmented channel incentivization	85
Figure 34: Datamonitor's market expertise and research and analysis methodology	91

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