August 18, 2020

In its latest quarterly market share report, Exact Ventures reported that in 2Q20 the enterprise session border controller (E-SBC) market contracted 6% sequentially and 15% versus 2Q19. The shift to work-from-home caused a large decline in premises-based PBX and unified communications (UC) users and usage thus offices needed fewer SIP trunks, thereby lowering the demand for E-SBC sessions.

An exception to this is Microsoft Teams. Businesses that use Teams for voice can use their own PSTN or SIP trunks thereby retaining more control over their lines and minutes. Vendors with relatively large exposures to Teams, like AudioCodes and Ribbon, were able to gain share during the quarter as a result. It is evident that work-from-home policies will continue well into 2021 and that the move back to offices will be slow and may never recover to previous levels. We forecast that the E-SBC market will decline 11% for the full-year 2020.

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