Services are expected to get up to 66 per cent revenue share of the US$39 billion global unified communication and collaboration (UC&C) market in 2019, while software, platform and endpoint revenues steadily decline, new research has revealed.
According to the Global UCC Industry Outlook, 2108 analysis from Frost & Sullivan, the global user base of cloud unified communications-as-a-service (UCaaS) is among the fastest growing segments, having surpassed 43 million, with net new users estimated to grow at a compound annual growth rate (CAGR) of 23 per cent from 2016 to 2023.
"Intensified competition and considerable price pressures are forcing providers and vendors to enhance their applications and services-based solutions portfolios," Frost & Sullivan industry principal, conferencing & collaboration, Robert Arnold, said.
The business consulting firm believes customisation and user adoption will be key to ensure UCC solutions deliver significant user and business benefits.
"This will broaden their addressable market as well as expand cross-sell and up-sell opportunities. Providers’ future success will hinge on addressing the customer’s need for customised, reliable and flexible solutions; reducing costs; and improving productivity.”
According to Frost & Sullivan, what will unlock value, generate greater return on investment and enhance business outcomes is UCC integration into workflows, automation, artificial intelligence (AI), and internet of things (IoT). Those should also enhance business out
The Frost & Sullivan analysis counted on primary research with vendors, providers, channel partners, and end users, previous published research, decision support data bases and other insights.
Arnold suggested that vendors, providers, partners, and enterprises collaborate clearly with enterprises on business needs assessment and post-deployment support.
“Progressive solutions such as AI, software-defined networking (SDN) and IoT are slowly making their way into enterprises, most of which have disparate networks, protocols and interfaces. For smaller organisations, these technologies may appear unattainable,” said Arnold.
Read more: Peter Leav takes charge of Polycom
“Providers must recognise where most customers are in their readiness for such advanced capabilities and lay the necessary foundations for adoption. Security and privacy concerns, coupled with unclear IT strategy and managing multi-vendor solutions, will also need to be addressed.”
Another recent study suggested that Cisco's market share of the global collaboration market has topped Microsoft's by a percentage point or more for much of 2017, but narrowed in the fourth quarter.
Synergy Research Group said that Cisco has an advantage over Microsoft in the global enterprise collaboration market but not when it comes to cloud deployments.