Asia Pacific Enterprise Telephony Market CY 2011

Is Enterprise Telephony market slowing down?

Shailendra SoniEnterprise Telephony and Collaboration, APAC22 May 2012

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Today’s Presenter

Expertise spans across industry, developed through years of research experience and regular interaction with regional and country level top executives of leading vendors in the collaboration space

Enterprise TelephonyUnified CommunicationsContact Centres

Over 11 years of experience

Shailendra Soni, Industry Principal

ICT APAC, Frost & Sullivan

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Index

Enterprise Telephony Market Analysis

Drivers & Restraints

Vertical Demand Analysis

Horizontal Demand Analysis

Forecast Analysis

Opportunities ahead in the APAC Enterprise Telephony market

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2009 2010 2011

1,727.6

1,850.9

1,965.0

Enterprise Telephony Market Analysis

IP PBX60.7%

PBX20.7%

KTS16.8%

WPBX1.9%

Enterprise Telephony Market: Historical Market Performance (Asia Pacific), 2009 – 2011

Enterprise Telephony Market: Market by Technology Segment (Asia Pacific), CY 2011

Note: All figures are rounded; the base year is 2011.Source: Frost & Sullivan

Note: All figures are rounded; the base year is 2011.Source: Frost & Sullivan

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Enterprise Telephony Market Analysis (Continued)

Growth in all quarters, reduced growth in Q3 and Q4 2011

Accelerated demand for IP Systems and IP Phones

Telephony solution is becoming highly commoditize.

ET market is starting to mature in countries such as Australia

Top vendors expected to grow in future with the likely hood of market consolidation in the future

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Drivers and Restraints

Drivers• Urge to adopt Unified communications • Globalization and changing staff sizing • SIP availability• Affordable unified communications

solution to SMB

Restraints• Market reaching maturity in major

markets• Uncertain economic condition• Speculation on vendor sustainability• Limited skilled resource

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Vertical Demand Analysis

Banking & Finance14.5%

Education5.9%

Government16.3%

Manufacturing15.7%

Telecommuni-cations11.8%

Transportation & Logistics

6.3%

Travel & Hos-pitality

8.7%

Others (Includes Prof Services)

20.8%

Note: All figures are rounded; the base year is 2011. Source: Frost & Sullivan

• Financial institution continued to expand and refresh their telephony infrastructure.

• Telephony demand from hotels increased in the year

• Other verticals that increased their spending were service providers and manufacturing entities.

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Large business tends to adopt a

telephony system that has high

availability with redundancy

• A major portion of demand came

as a form an expansion

Horizontal Demand Analysis

SMBs is starting to adopt an IP

Telephony system with features

such as

• Simple & easy to use

• Easy to Maintain

Large Busi-

nesses54.4%

Small & Medium

Busi-nesses45.6%

Note: All figures are rounded; the base year is 2011. Source: Frost & Sullivan

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Forecast Analysis

Source: Frost & Sullivan

2011

2015

0.0

500.0

1,000.0

1,500.0

2,000.0

Revenue Forecast, 2011–2015CAGR = 7.5%

IP PBX PBX KTS WPBX

Rev

enu

e (M

n U

S $

)

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Forecast Analysis (continued)

Enterprise Telephony Projection

• All technologies are expected to grow positively in near term future (2012 to 2014).

• The PBX and KTS market is expected to grow at snail’s pace till 2014 and will then start to decline over the forecasted period.

• Increasing awareness of UC and availability of SIP trunking in the region to propel the IP Telephony market

• Telephony solution more being sold as a part of overall UC solution.• The managed and hosted telephony expected to take away 20 to 30%

of on-premise telephony

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Opportunities ahead in the APAC Enterprise Telephony market

Telephony business will continue to face price and margin pressure

Indonesia, Thailand, China and India to lead the market growth

SMBs and Midmarket holds opportunity for growth

Strength of mobility solution will add differentiation to telephony solution

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For Additional Information

Donna JeremiahCorporate CommunicationsAsia Pacific+61 (0) 8247 8927 djeremiah@frost.com

Carrie LowCorporate CommunicationsAsia Pacific+603 6204 5910carrie.low@frost.com

Jessie LohCorporate CommunicationsAsia Pacific+65 6890 0942jessie.loh@frost.com