Evaluating Demand for PBX Functionality and PSTN Connectivity

Evaluating Demand for PBX Functionality and PSTN Connectivity

Is the Future of Business Call Control Mobile?

Frost & Sullivan’s 2023 IT decision-maker (ITDM) survey was conducted to gain insights on the following end-user organizations’ priorities:
• Current communications and collaboration technology adoption rates and future adoption plans
• Demand for private branch exchange (PBX) and cloud/mobile PBX functionality
• Evolution of enterprise telephony/business call control environments
• Demand for public switched telephone network (PSTN) connectivity and calling plans
• Demand for mobile voice and data services
• Importance of different mobile communications solutions

The survey also aimed to test several hypotheses related to evolving work styles, the impact of macro-economic factors on communications budgets and digital transformation, and the evolution of business communications.

A key objective of this study was to test the hypothesis that private branch exchange (PBX) functionality and public switched telephone network (PSTN) connectivity are declining in importance and usage due to changing organizational requirements. More specifically, our assumption was that many organizations might look to save costs by decreasing their investments in PBX/enterprise telephony and PSTN services provided to remote workers, and even in-office employees, as collaboration services (e.g., video meetings and group chat) gain widespread adoption. In addition, our assumption was a zero-sum game between collaboration and telephony services: if communication budgets are static, additional investment in collaboration required a decline in PSTN services.

The survey results proved our hypothesis incorrect. Demand for PBX and PSTN connectivity remains strong, most likely boosted by customer migration to modern cloud/mobile PBX and unified communications as a service (UCaaS). However, other unified communications and collaboration (UCC) solutions are gaining traction even more rapidly as a result of evolving work models.

Our survey also tested the hypothesis that mobility is becoming an increasingly important business communications capability. Evolving flexible work programs are amplifying existing drivers for the adoption of mobile-first or mobile-ready business communications. Lengthy commutes for those going into offices, frequent business travel, and underserved frontline and field workers, in addition to a greatly expanded remote/hybrid workforce, drive investments in mobile solutions to keep employees productive and engaged anywhere, anytime.

The survey results proved the validity of our hypothesis and showed high demand for mobile business communications, including mobile voice
and data services, smartphones and tablets, mobile and desktop soft clients, and native mobile dialers with business phone numbers. Many organizations have already adopted a variety of mobility solutions at some level and others are planning to do so in the next three years.

Adoption of next-generation technologies, including cloud/mobile PBX and UCaaS, is typically delayed by a variety of factors including existing technology investments, lack of awareness of new technologies’ benefits, budget constraints and change management issues. Our survey tested the hypothesis that the age of the ITDM is another important factor impacting speed of technology adoption, and more specifically that younger ITDMs are more likely to adopt cloud/mobile PBX/UCaaS and perhaps drive a shift to mobile-first or mobile-only communications.

The survey results show certain notable differences across ITDM age groups in terms of technology perceptions and investment plans, but not enough to fully prove our hypothesis. For example, a larger proportion of younger decision makers, compared to older ones, plan to adopt cloud PBX in the next three years. Also, younger decision makers place greater importance on mobile capabilities such as soft phones and native mobile dialers with business phone numbers. However, younger decision makers do not appear to be more averse to leveraging PBX functionality, PSTN connectivity, IP phones or analog fax.