According to Frost and Sullivan`s recent IP PBX research, 2005-2007 is a good time for the replacement business in Europe. According to Frost and Sullivan`s recent IP PBX research, 2005-2007 is a good time for the replacement business in Europe. Director Brett Gascoine says research indicates that many companies that spent money to ensure that they were Y2K-compliant have discovered that they need to replace some technologies anyway. The economic upturn in 2003/4 has also resulted in many companies having the resources to consider updating.

Gascoine was speaking at the ITWeb Business Communications Executive Forum, which investigated the convergence of data-centric and voice-centric technologies.

Gascoine noted that although the adoption of IP telephony has not been as fast as expected, Europe witnessed increased activity in 2004/5. He said some countries, like the UK and Scandinavia, have embraced IP telephony, but others, due to scepticism and lack of funds, have waited, like Germany.

The market is still expected to grow by at least 38% by 2007/8, due to perceived cost and productivity benefits, and network consolidation and centralisation.

Gascoine, however, did advise cau-tion, saying the market will continue to see event-driven investment in IP PBXs in the short-term, due to a perceived lack of an overall compelling reason to migrate. Also, he said, matching the reliability of TDM PBXs is costly. Data networks are not yet entirely voice-ready, and security remains an issue. There is also a lack of enthusiasm from service providers, who wish to safeguard their revenue streams.

Gascoine said in his experience, initiatives taking place in Europe also take place in South Africa. However, Frost and Sullivan is also opening a new office in Cape Town soon. Research undertaken by this office will focus on South Africa and Africa as a whole, he says.