This IDC study reviews and provides a residual value forecast for Avaya's portfolio of PBXs including DEFINITY G3 Releases 10.0, 9.0, and 8.0; key systems such as MERLIN MAGIX, LEGEND 7, and LEGEND 6; and select media and gateway servers. The study provides an equipment overview, a review of secondary market trends, a future outlook, and essential guidance for organizations involved in the purchase, sale, or investment management of these telephony systems.

The PBX and key system telephony markets are well along in their transition to IP telephony, a technology that uses Internet Protocol's architecture to exchange voice, fax, data, and other forms of information through standard LAN network infrastructure instead of dedicated, circuit-switched connections. The new technology promises to reduce cost and complexity but requires most equipment be replaced. As this transition happens, customers, manufacturers, lessors, and resellers will need to demonstrate careful investment planning. IDC estimates that 60% of new PBX shipments will be IP based by 2009.

"The secondary market for Avaya products remains active and continues to adapt well to voice technology changes. With large quantities of TDM and first-generation IP equipment available, Avaya's continued development of its Communication Manager software platform is the key driver for bridging the gap between Avaya's legacy and existing products to the emerging and dominate IP world," says Frank A. Barber of IDC's Technology Valuation Services.