In the rapidly evolving enterprise communications market, Customer Premises Equipment (CPE) vendors confront imminent erosion in their installed base as cloud services gain traction across the public, private and hybrid cloud domains. By 2016, 41 percent of all enterprise communications users, or 386 million lines/seats, will be on virtual infrastructure, posing a serious danger to the CPE market.

"For CPE vendors, the cloud threat is real," says senior analyst Subha Rama. "By 2016, the communications CPE market will only grow 4.3 percent, while cloud communications will grow by over 21 percent, reaching $8bn in revenues."

The complete "Enterprise Cloud Applications and Vertical Analysis" report is available from ABI Research.

Source: ABI Research