Analysts split over VoIP market reaction to Avaya buyout

US-based VoIP hardware manufacturer Avaya's merger agreement with Silver Lake and TPG Capital has prompted contrasting views of the future of the VoIP market, with some analysts predicting the deal will not have a great impact while others suggested it "signals the dawn of change".

Moderate analysts said that the deal won't lead to more VoIP vendors consolidating their assets as the purchase was by private investment firms rather than a competitor.

Speaking to VoIP News, Krithi Rao, an analyst for Froth & Sullivan, said that this means Avaya will just be boosted by greater capital to invest in its products or research and development.

However, a more revolutionary viewpoint was proposed by Nemertes Research, an independent research firm, who said that the deal links into two market trends - the move towards software-based VoIP platforms and the possibility of Microsoft becoming a competitor for current internet telephony providers.

Microsoft is introducing Office Communications Server 2007 into general release later this year, which may pressurise the market as the Seattle-based company has said the program will reduce costs by moving VoIP controls to software rather than hardware solutions.

While Nemertes said that these trends were unlikely to effect firms buying-in VoIP services, the researcher suggested that vendors consider their position in the market and weigh up whether it will be necessary to enter into a partnership or merger in order to compete in the future.

Posted on: 2007-06-12, in: General VoIP

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