Migration to Unified Communications Slowed but Not Deterred by Deep Recession

Avaya, Cisco, Siemens, Alcatel-Lucent, Microsoft, and IBM post respectable
results
RENO, Nev.--(Business Wire)--
Synergy Research Group announces the publication of a series of Q1 2009
Collaborative Applications Market Share & Analysis Reports. The worldwide market
for Collaborative Applications in Q1 2009 amounted to $913.3 million in sales.
In general, the extended pause in enterprise telephony sales continues while
prospects and customers await the recovery of the global economy, assess the
effects on their budgets and postpone buying decisions directly affecting
Collaborative Application sales.

"We believe those vendors that are in a strong strategic position, such as
Avaya, Alcatel-Lucent, Cisco, Siemens, ShoreTel and Mitel, are in good shape to
weather the present business environment and provide a strong UC migration
story," said Jeremy Duke, CEO, Synergy. "Those vendors that are more exposed and
are displaying challenges with market share progress and in addressing other
significant industry issues, include 3Com, Aastra, Nortel, NEC, and Toshiba."

Q1 2009 Collaboration Applications - UC Desktops Sold
Rankings Q-Q Change Y-Y Change
Avaya 1 -18.5% -14.1%
Cisco 2 -33.3% -21.7%
Siemens 3 -11.0% -3.0%
Alcatel-Lucent 4 -29.3% -23.1%
Microsoft 5 -28.1% -12.6%
Nortel 6 -28.9% -24.9%

Synergy defines Collaborative Applications as a collection of network-based
applications that facilitate the working together of two or more individuals
regardless of physical location. For current quantitative measurements, the
Synergy Collaborative Applications market segment include the following
sub-categories: UC Desktop, Presence Management, Instant Messaging, Desktop
Web/Video/Audio Conferencing Unified Messaging, and Mobile 2.0 applications. For
definitions of each, please refer to the report.

The biggest growth market in Collaborative Applications is what Synergy has
defined as UC Desktops. Synergy defines a UC Desktop as a user workspace having
the minimum requirements of access to voice telephony (PBX/KTS/dial tone) and
integrated presence management and instant messaging capabilities. A UC Desktop
can be made up of a tightly integrated, single vendor solution combining voice
telephony and presence/IM or a multi-vendor telephony and presence/IM solution
integrated into a unified worker`s desktop. UC Desktops can be stratified into
three levels of functionality: Basic, Standard, and Advanced.

Further Synergy breaks the UC Desktop into the two-market sizing categories of
Enterprise and Small Medium Business (SMB). Synergy defines Enterprise as those
systems that ship with 150 lines or more, and conversely defines SMB as those
systems that ship with fewer than 150 lines.

"In the SMB category, ShoreTel continues to grow its UC offering and carve a
leadership position in the market in the face of significantly larger
competitors," said Ken Landoline, VP of Research, Synergy. "Although ShoreTel,
compared to its competitors, has challenges with brand name recognition,
international presence, and a limited service provider reseller channel,
ShoreTel has optimized on current market conditions with Nortel`s market
challenges and the company is moving ahead aggressively with channel build out
and international expansion."

Q1 2009 SMB UC Desktops Sold
Rankings Q-Q Change Y-Y Change
ShoreTel 1 -19.2% +3.8%
Cisco 2 -28.6% +8.3%
Avaya 3 -14.8% +16.3%
Siemens 4 -8.8% +5.6%
Alcatel-Lucent 5 -24.2% -11.0%
Mitel 6 -14.0% -37.2%

Interesting trends spotted in the Q1 2009 and analyzed in the report include

* Pressure on SMB credit availability is fostering a growing interest in UC
outsourcing, increasing demand for managed service offerings in Q1 2009.
* Social Networking continues to be a hot topic of discussion as UC vendors look
to interface or incorporate Social Networking applications into their UC
offerings.
* Average Selling Price in the UC Desktop market, which has been holding steady
over the past six months, dropped slightly in Q1 2009 indicating the growing
competitive nature of the industry.
* Conferencing bucked the decreasing trend in collaborative applications by
growing revenues 7% quarter to quarter. This is on top of a 5% growth in
revenues in Q4. Conferencing (web, video and audio) still shows good growth as
corporations continue to spend on technologies that are perceived to have
relatively short-term returns on investment and a positive effect on employee
efficiencies.

About Synergy Research Group

Synergy Research Group (www.srgresearch.com) is a market research leader
providing quarterly market share analysis and forecasting services, as well as
custom consulting to the telecom, mobile and networking industries.

Synergy`s market research is available over an innovative Web 2.0 platform,
providing access to a powerful research tool that provides immediate ROI
advantages and puts the power of market research in the hands of the user. To
view Synergy`s SIA Web demo, visit www.srgresearch.com.

Synergy Research Group
Heather Wilson, +1 775-852-3330 ex 108
hwilson@srgresearch.com

Copyright Business Wire 2009