Business Gateway Market Will Take Off In 2007

In-Stat : The market for multi-service Business Gateway equipment will ramp-up beginning in 2007. By 2007, service providers will offer bundled service offerings that include Business Gateway devices for SMB and branch office markets, a development prized by customers. A Business Gateway is a next-generation networking device designed specifically to perform multiple primary functions in contrast to the plethora of multi-service devices that remain optimized for a single function or application. Field trials of new Business Gateway products will continue through the remainder of 2005 and most of 2006t. Our survey data shows that Business Gateway buying decisions will be driven more by datacomm device replacement than by PBX replacement.

• North America will be the largest geographic market, with approximately 43% of total Business Gateway shipments in 2007, followed by Europe with a 33% share of the market.

• Respondents to an In-Stat survey clearly indicated a preference towards multi-service devices and a bundle of services supplied by a single service provider.

• The migration to VoIP may also prompt the equipment buying decision, but currently, small and medium businesses and small enterprises do not have plans for full VoIP deployment.

SMBs and Branch Office Markets Prefer Multi-Service Business Gateways! Publ. 20051011