PBX revenue (TDM, hybrid, pure IP) dipped 6 percent year-over-year and slipped 1 percent sequentially in Q2 2014, said Infonetics Research.
The research report said enterprise spending remains conservative overall, with low priority being given to telephony upgrades and expansion on the premises side.
PBX line shipments decreased 3 percent from the year-ago quarter.
Unit shipments of IP deskphones increased 4 percent in Q2 2014 from Q1 2014.
Asia Pacific posted solid year-over-year PBX revenue growth in Q2 2014, while North America had the toughest quarter of any region.
In the unified communications (UC) market, Microsoft PBX revenue grew 4 percent. Microsoft continues to grow on the telephony front. Microsoft was 1 of only 3 vendors to post year-over-year PBX revenue growth in the second quarter.
UC applications revenue grew 31 percent. Demand for tools to provide increased productivity and employee flexibility continues to fuel growth.
“The trends we reported on the enterprise telephony market in the first quarter of 2014 carried over into the second quarter, with the PBX market continuing to take hits as businesses evaluate cloud alternatives and hold onto existing solutions while investing in UC applications,” said Diane Myers, principal analyst for VoIP, UC, and IMS at Infonetics Research.