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Videoconferencing Leads UC Adoption Plans

Unified Communications Featured Article

Videoconferencing Leads UC Adoption Plans

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October 03, 2013

By Gary Kim, Contributing Editor


Some 87 percent of enterprises surveyed by Infonetics Research (News - Alert) plan to add videoconferencing to their UC architecture by August 2014, according to Diane Myers, Infonetics Research principal analyst. In fact, the adoption of videoconferencing is the “biggest change we’re seeing in unified communication deployments,” said Myers.


About 22 percent of respondents already have implemented portions of their UC architecture in a private cloud and 19 percent have done so in a public cloud, the study found.

Collaboration is the most common application deployed in the cloud, followed by conferencing and faxing.

For businesses that have not adopted unified communications, the top barrier is cost, Infonetics says.

Security, support and device options seem to be the most important issues. On the other hand, a reasonable observer would be hard pressed to discriminate between those issues and price or innovative service offers as key values.

Wainhouse Research forecasts the unified communications services segment will grow to $13.4 billion by 2013 with a compound annual growth rate of 19 percent.

Of that amount, hosted voice providers which earned $18 million in 2008 will earn $3.4 billion in 2013.

Messaging providers that booked just $1.3 million in 2008 revenue will sell $3.1 billion in 2013, in part because messaging platforms are adding UC features as well.

The audio conferencing services market will see significant minute-usage growth, but only small revenue growth due to falling average selling prices.

Hosted video bridging is not expected to grow in any significant way, Wainhouse (News - Alert) Research expects.

The shift to cloud-based services will not be matched by sales growth of UC products such as business phone systems, though. UC product growth is forecast to hover around one percent, hampered by stagnation in the telephony market.

The global market for enterprise cloud-based services will grow from $18.3 billion in 2012 to $31.9 billion in 2017, according to Analysys (News - Alert) Mason.

The year-over-year growth rate will be 17 percent in 2013, but will decrease during the next five years as the size of the cloud services market increases overall.

Software-as-a-service (SaaS (News - Alert)) accounted for 66 percent of revenue in 2012, while 33 percent was related to infrastructure-as-a-service (IaaS). The revenue split will change during the next five years, as the share of revenue from infrastructure as a service increases to 43 percent by 2017.




Edited by Rory J. Thompson

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