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The Rise of Cloud and Hosted Communications: A 2011 Update Jessie Yu Industry Analyst ICT Practice Frost & Sullivan October 2011

The Rise of Cloud and Hosted Communications: A 2011 Update

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Page 1: The Rise of Cloud and Hosted Communications: A 2011 Update

The Rise of Cloud and Hosted Communications: A 2011 Update

Jessie YuIndustry AnalystICT PracticeFrost & Sullivan October 2011

Page 2: The Rise of Cloud and Hosted Communications: A 2011 Update

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Focus points

• The Cloud and Hosted communications in the conferencing framework

The upcoming research studies from Frost & Sullivan :1) P5A4-64, 2011 Audio and Video Conferencing Services Market2) P 5A5-64, 2011 Web Conferencing Software and Services Market

Conferencing Services

Hosted Services

Audio Conferencing

Services

Video Conferencing

Services

Cloud Services

Web Conferencing Services

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Agenda

Major Market Trends1

Key Growth Initiatives

Market Outlook in Asia Pacific2

3

Competitive Landscape4

Key Takeaways5

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Major Market Trends

Source: Frost & Sullivan analysis.

2Success of customer turnover become the key to drive growth

3Malaysia, India, China are the emerging growth countries in Asia Pac

4New pricing models are introduced to increase the usage

5Mobility has become the technology-focus for all established vendors.

1Conferencing services are stepping into realm of collaboration space

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Collaboration Applications expected to lead in growth during forecast period

$6.7 Mn

$4.1 Bn$3.8 Bn

On-Premise Applications Market Opportunity

Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.

Overall CAGR (2010–2017): 9.4%

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Collaboration in the Cloud continues its high growth: Audio, Video and Web SaaS Conferencing

2005

2010

2017Market Size:

$256 Mn

Market Size:

$544 Mn

Market Size:

$1.3 Bn

• Market size doubled in the last 5 years, expected to double again in 5 years

• SaaS offerings of web conferencing is gaining robust awareness, especially among developing countries such as India, China, Malaysia

Source: Frost & Sullivan

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SaaS Web Conferencing leads the growth

Overall CAGR (2010–2017): 13.2%$1.3 Bn

$619.2 Mn$543.7 Mn

Asia Pacific Conferencing Services

Market Opportunity

Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.

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Drivers and Restrains – Overall market

Rank Driver 1-2 Years 3-4 Years 5-7 Years

1Bleak global economic outlook leading to higher focus on cost-effective collaborative tools High High Medium

2Integration of UC, data sharing, audio, video, and project management features into multiple devices

Medium High High

3Tougher competition driving innovation and lower prices Medium Medium Medium

4 Increasing awareness in emerging markets Medium Medium Medium

Rank Restraint 1-2 Years 3-4 Years 5-7 Years

1Some countries are not accessible for global market participants Medium Medium Low

2Price erosion continues to affect the growth of conferencing services market Medium Low Low

3Market saturation is a deterrent in some countries Medium Low Low

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Technology, economy and environment create the perfect conditions for conferencing services

Multiple forces are coming together to produce

a market ripe for change

Organizational wide usage of video conferencing

User Driven IT and Web 2.0 adoption

The rise adoption of smart phones and tablets

The needs of Social media apps

Fast moving of Communication Technology

Technology convergence of agile and flexible integrations

The bandwagon of Cloud

Source: Frost & Sullivan

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Key initiatives for customers to adopt conferencing services

Upfront Cost and Operation

• High upfront cost for concurrent user license

• Operational costs worry enterprises• Add-hoc meetings increase

Technology Complexity

• Pre-delpoyment assessment• UC, collaboration, social media,

workplace management, etc. increase the complexity of technology

User Experience• Simultaneously system upgrade• Customizable functionality with latest

user interface

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Regional Breakout

Regional Distribution, 2010 Regional Distribution, 2014

Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.

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Intense competition among global vs. local market participants

Local APAC players Global Players

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Local players are gaining share

A

Global CSP are dominating the audio conferencing services segment with the well established service capability world-wide

B

Japan is the largest country with demand of video conferencing bridge services, leading to an absolute dominant position for local players

C

Fierce competition between global and local vendors in web conferencing segment

201

0

200

9

A

B

C

54.5% 45.5%53.9% 46.1%

Note: All figures are rounded. The base year is 2010. Source: Frost & Sullivan analysis.

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Notable M&A/Partnership drive the market into more integrated stage

ACQUIRE

ACQUIRE

ACQUIRE

ACQUIRE

Partner

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Key Take-Aways

Opportunities Abound!

Mobility is set to boost the usage

Collaboration technologies are blurring

Regional vendors getting more active

SaaS continues leading the growth

Increasing competition & consolidation

Social applications integrating into the cloud

China & India will be key focus markets in the future

Technology standardization drives growth

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Frost & Sullivan Collaboration Research – 2012 Studies

Markets Covered• Conferencing Services

• Audio• Video• Web

• Video Conferencing Endpoints

• Video Conferencing Infrastructure

• Telepresence• UCaaS• Managed Visual

Collaboration Services• Social Media & Web

2.0 Applications• Tablet Devices for

Enterprise

Detailed Research

•Major Market Trends•Drivers & Restraints•Market Sizing•Market Forecast Outlook•Competitive Analysis & Market Shares by Technology•Unit Shipments & Forecast Analysis•Market Entry & Expansion Strategies•Total Addressable Market Analysis•End-user Collaboration Surveys

Geographies

•14 Country Coverage•Includes•Australia•New Zealand•Singapore•Malaysia•Indonesia•Philippines•Thailand•Vietnam•India•China•Hong Kong•Taiwan•Japan•South Korea

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Next Steps

Register for the upcoming briefing for Japan Collaboration Market on November 15th 2011. ([email protected])

Launch of CY2011 Video Conferencing Endpoint and Infrastructure Study in early Nov, followed by a related analyst briefing in March 2012. ([email protected])

Request a proposal for or Growth Partnership Services or Growth Consulting Services to support you and your team to accelerate the growth of your company. ([email protected])

Participate in our global Growth, Innovation and Leadership program (http://www.gil-global.com)

Register for Frost & Sullivan’s Growth Opportunity Newsletter and keep abreast of innovative growth opportunities. (www.frost.com/news)

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http://twitter.com/frost_sullivan

Follow Frost & Sullivan on Facebook, LinkedIn, SlideShare, and Twitter

http://www.facebook.com/pages/Frost-Sullivan/249995031751?ref=ts

http://www.linkedin.com/companies/4506

http://www.slideshare.net/FrostandSullivan

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For Additional Information

Donna JeremiahCorporate CommunicationsAsia Pacific+603 6204 [email protected]

Carrie LowCorporate CommunicationsAsia Pacific+603 6204 [email protected]

Jessie YuIndustry [email protected]

Jessie LohCorporate CommunicationsAsia Pacific+65 6890 [email protected]