Video Conferencing: Pervasive Collaboration leading to end-user productivity. A Frost & Sullivan White Paper
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1 A Frost & Sullivan White Paper 2014 Frost & Sullivan India ICT Awards: Video Conferencing Equipment Vendor of the Year
2 VIDEO CONFERENCING - GROWING NEED FOR EFFECTIVE ENTERPRISE COMMUNICATION In the current business landscape, video conferencing (VC) solutions have moved away from just being limited to board room discussions and have become a more integrated part of enterprise communications. The overall VC experience is evolving to become more open source standard, device agnostic, and mobile. The technology continues to transition from hardware focus, to software, to cloud computing. The industry is on the verge of significant shifts. Users are demanding ubiquitous video that is scalable, affordable, and easy to use. The necessity to provide realistic user experience and industry specific customized applications is likely to be a key success factor for the vendors in this market. New architectures and business models such as software-centric solutions, cloud services, and seamless mobility are gaining high mindshare from large as well as small and medium businesses (SMBs). Advances in software and cloud computing are allowing organizations to drive down the cost significantly. Importantly, the lines between web conferencing and video conferencing are becoming gradually fuzzy as web conferencing solutions offer higher quality, richer video capabilities and video conferencing vendors are constantly innovating to add enhancements to content sharing and content management features. There is a growing need for cost-effective and flexible infrastructure solutions that can support broader deployments of video, particularly for large scale desktop and mobile users. KEY TECHNOLOGY TRENDS SHAPING THE VIDEO CONFERENCING MARKET WebRTC H.265 Cloud based VC solutions Open Source Standard for VC Source: Frost & Sullivan 2
3 Open source for VC has given rise to more interoperable solutions at a reduced cost. Open application programming interfaces (APIs) and software development kits (SDKs) are used by independent software vendors (ISVs), systems integrators, and service providers to test, create, and ultimately deliver new software applications and solutions, thus strengthening the ecosystem. Cloud-based technologies are definite areas of growth that is leading to a continued shift in the use of video conferencing beyond traditional room-based systems. Vendors are moving their infrastructure to virtualized solutions that are likely to make deployments much easier and faster. Based on Web Real-Time Communication, this technology is likely to make video conferencing as easy as clicking on a website. Anyone with a PC will be able to leverage video conferencing without the need for a special client. WebRTC standards work seamlessly across multiple channels, platforms, and devices. This platform is aimed to provide real time collaboration anytime and anywhere. H.265 technology is aimed at reducing bandwidth usage up to 50 percent for the same level of quality. As a result of which the cost of VC solutions is likely to decrease as bandwidth cost is a key component in the overall pricing. Video quality is likely to improve since many video solutions are currently limited to a specific bandwidth. This will have an immediate positive impact on quality of the overall VC experience. BUSINESS DRIVERS FOR HIGHER ADOPTION Source: Frost & Sullivan WAY FORWARD A significant highlight in the VC market is the rapid growth of cloud and software based VC solutions. The high enterprise mindshare can be mainly attributed to the significant cost benefits, faster time to deployment, scalability, and flexibility options. Moving forward, traditional VC vendors are expected to enter the cloud based VC solutions market as this market is likely to witness strong traction from large enterprises as well as SMBs. Due to the high cost associated with the sale of multi codec immersive telepresence equipment, the market is experiencing a decline that is expected to continue in the medium to long term. End- users are delaying their purchase decisions to look for alternatives that are less expensive, more software and cloud based, gradually shifting away from hardware based products. Hence, going forward in the medium term, video conferencing vendors will also need to respond to the changing dynamics by offering software based and cloud based video solutions. 3
4 2014 FROST & SULLIVAN VIDEO CONFERENCING EQUIPMENT VENDOR OF THE YEAR AWARD AWARD DESCRIPTION The Frost & Sullivan Award for Video Conferencing Equipment Vendor of the year has been conferred upon the company which has excelled in terms of market share and stupendous revenue growth, developed a broad product portfolio, and has been successful in translating its customer insights into strong product lines and subsequently expanding its customer base. The winner of the 2014 award has been a model of growth and innovation and hence has been selected as the Video Conferencing Vendor of the year. RESEARCH METHODOLOGY The award recipient was judged on the basis of several parameters, which involved in-depth primary interviews of various industry participants and secondary research conducted by Frost & Sullivan analysts. To incorporate the end-user perspective, the data was then presented to an elite panel of jury members comprising some of the most prominent CIOs/CTOs from the industry. Frost & Sullivan then presented the award to the company that achieved the number one industry rank. MEASUREMENT CRITERIA In addition to the methodology described above, specific criteria were followed to ascertain the final competitor ranking in the industry. The award winner has excelled in one or more of the following criteria: Revenue Market share Product portfolio diversity Unified Communication integration Go-to-Market Strategy AWARD RECIPIENT: Cisco Cisco remained ahead and maintained its market leadership position in The vendor has been successful in introducing scalable solutions on all its client devices integrating web, audio, and video. It is positioned as a single point vendor for end to end solutions that ensures complete integration with other unified communication (UC) applications. The vendor has been focused on making video solutions truly pervasive by imbibing mobility, hardware, software solutions, as well as cloud based solutions that have gained high mindshare from mid as well as large enterprises. The vendor has very strong channel, services and system integration partners in the country and enjoys a predominant hold within enterprise UC buying groups. A diverse product portfolio, strong channel network, and robust post-sales support were cited as the key differentiators for Cisco s core collaboration services on all its client devices including web, audio, and video. 4
5 HIGHLIGHTS FOR CISCO IN 2013 v In 2013, Cisco updated its Jabber version which is now tied to Cisco s Unified Communications Manager for call control, and is tightly integrated with WebEx for web conferencing. This version also has native interoperability with Cisco TelePresence systems as well as other standard third party video conferencing solutions. With a broad product portfolio in the desktop video unit segment and launch of its updated Jabber version, the vendor offers a wide choice of video endpoints in the collaboration space. v Cisco offered its VC solutions in a variety of form factors such as Virtual as well as Physical dedicated appliances as well as in on-premises and cloud models. Additionally, the vendor made progress in simplifying and unifying its pricing model and massive communications portfolio. v Additionally, for the Indian market Cisco planned a series of product launch comprising video endpoints including Telepresence SX10, second generation version of MX200 and MX300, a floor-standing system that combines a 42-inch screen with an HD camera geared for small conference rooms. There is also the MX700 and MX800, for large-sized rooms. The launch of these new video endpoints is anticipated to place Cisco ahead in the game, as these products offer high quality video at a lower price point in comparison to the previous series of products. v The underlying philosophy behind the company s success was attributed to its continuous pace of innovation, delivery of new features and products, and ease of deployment and management of its solutions. Cisco s move towards integrating internet of things into mainstream enterprise systems is likely to develop the overall unified communications market in the medium to long term. Launch of its new models in the high-end, mid-range and low-end segments placed Cisco as a key challenger, displacing competitors based on value, price, and performance. v Cisco s broad portfolio gives customers the flexibility and choice to purchase and deploy VC solutions in a way that best fits and adapts to any changing business environment. Therefore, Frost & Sullivan is honored to recognize Cisco as the recipient of Video Conferencing Equipment Vendor of the Year, Mr. Puneet Gupta, Managing Director, Enterprise & Public Sector Sales, Cisco India & SAARC receiving award from Ms. Anju Arora, Founder & Managing Director, ADI Media Pvt Ltd 5
6 Video Auckland Conferencing: Dubai Pervasive Bahrain Collaboration leading Frankfurt to end-user productivity Bangkok Iskander Malaysia/Johor Bahru Beijing Istanbul Text Bengaluru Jakarta Bogotá Kolkata Buenos Aires Kuala Lumpur Cape Town London Chennai Manhattan Colombo Mexico City Delhi/NCR Miami Detroit Milan Mumbai Moscow Oxford Paris Pune Rockville Centre San Antonio São Paulo Seoul Shanghai Shenzhen Silicon Valley Singapore Sophia Antipolis Sydney Taipei Tel Aviv Tokyo Toronto Warsaw Washington, DC Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make orbreak today s market participants. For more than 50 years, we have been developing growth strategies for the Global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasingcompetitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? For information regarding permission, write to: Frost & Sullivan LLC #210, EIB - 4, BT Building, Dubai Internet City PO Box: , Dubai, U.A.E. 6
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