Asia Pacific UC Market Trends and Predictions
Nitin Bhat
Agenda
1
2
ICT Megatrends
Unified Communications Adoption Trends
2
#1: Mobile Platforms hitting critical mass across smartphones and tablets
Global Trends Asia Pacific Trends
NetbookPCs
Tablets
~ 380mn
~ 480mn
~ 150mn ~ 155mn
3
DesktopPCs
PCs
Smartphones
2011 (e)
DesktopPCs
NetbookPCs
Smartphones
Tablets
2011 (e)
• Globally in Q4 2010, smartphone & tablet shipments exceeded desktop & PC shipments
• In the Asia Pacific region, the shift happened by end of Q4 2011
~ 150mn
#1: Mobile Platforms hitting critical mass across smartphones and tablets
Mass market phase will aggravate the challenges for operators, vendors and enterprises alike
• Initial seeding to monetize 3G networks
Market SeedingUpto 2008
Device Driven growth2009-11
Mass Market Phase2011- 2015
• More mobile BB devices than fixed BB devices
Packet data exceeded
Video is driving network traffic
Smartphone is mass market
Networked Society2015+
Wide penetration of devices and networks
Information ubiquity
4
• Flat rate as a demand simulation mechanism
• Packet data exceeded voice data on mobile networks in 2010
• Apps are the new internet
80% of internet users to have mobile internet
IT Consumerization
Higher penetration of tablets
IT needs to support such devices
Cloud driven models
#2: Fixed Broadband and 3G/LTE will provide options for high speed access
Fixed Broadband – Asia Pacific 3G/LTE – Asia Pacific
5
212mn
343mn
2011(e) 2014(f)
466mn
1bn
2011(e) 2014(f)
• The fixed broadband market continues to grow in Asia Pacific region despite of the heavy penetration of 3G/LTE.
• MBB through dongles will touch 41mn in 2011 and reach around 100mn by 2014
• More LTE deployments happening in 2012/2013 time frame
#3: Big Data and Analytics will see reaching the chasm in 2012 and get deployed through variety of platforms and be enabled by emerging technologies
Contextual Mining
Network performan
ce & Utilization
Operations Research
Data is expected to increase dramatically over the next decade; Data from machine communication and IOT is expected to exceed social media in the next half decade
Growth Areas @ Analytics� Queries, � Reporting, analytics,� Advance analytics,
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Big Data
Utilization
Sentiment Analysis &
Text Analytics
Security
Industry Specific Solution
� Advance analytics,� CRM analytics,� Data warehouse generation � Organization financial /
strategy analytics� In-line and predictive analytics� Move more towards cloud
#4: Cloud computing is set to become mainstream in Asia Pacific region
Mainframe Era PC / Client-ServerEra
Internet Era - Ubiquitous access
Cloud ComputingEra
Factors driving market transition :
- Inefficient IT usage- Increasing commoditization
of IT resources- Ubiquitous broadband
7
1970’s 1980’s 1990’s 2000’s1970’s 1980’s 1990’s 2000’s
- Hardware focused- Centralized- Dumb terminals
- Prominence of software
- De-Centralized- Power to the user
- Ubiquitous access- “Webification” of
Apps- Enterprise mobility
Era - Utility basis- Multi-tenant- Self-service
Source: Frost & Sullivan
#4: Collision of 3 ecosystems creating new a new paradigm
3 ecosystems are converging in the mobile computing ecosystem with diverse approaches
1990s
Client-Server Computing
2000s 2010s 2020s
Cloud Computing
Web OS
PC as Entertainment/Personalized
PC as Workhorse
Laptops/Netbooks Tablets
2015
Computing Cycle
Collision Phase Convergence Phase
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Mobile Cycle
Mobile internet
Email/ Web Web 2.0
2G Based Comm
Fixed BB Growth
Customized Tablets/phones Apps
ks Tablets
Smartphones
Digitization – Digital content overtook analog content
Web 3.0 + Aug Reality
Video overtook static pages
Internet Cycle
Mobile Cloud
Graph not to scale
Soft SIMs
Mobile devices sold> Fixed devices
#4: Cloud computing is set to become mainstream in Asia Pacific region. Platform-as-a-service (PaaS) is set to be the new battleground in the cloud computing industry
SaaS
Current View (2010)
Yr1 Yr7
Device Presentation
Interim View (2011-13)
Application Management
End game
Software Reseller
Software Reseller
The cloud value chain will disintegrate and consolidate later
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Source: Frost & Sullivan
PaaS
IaaS
Management
Tenancy Managers
Platform
Brokers/Aggregators
Synchronization
Hosters/Infrastructure
2-3 end to end cloud
players
Preferred partnerships of SPs
with software (
retail model)
#5: Enterprise communications would become richer, more collaborative and increasingly move towards the cloud
RichCommunications
- Pervasive video- Context & presence aware
Increasing Globalization
Improving Infrastructure
Declining Telecom Costs
Shift from Capex to Opex
10
CollaborativeCommunications
- Conferencing- ESN
Cloud- Native and new
Globalization
Consumerization of IT
to Opex
Generation Y workforce
#5: And Customer Experience would become more intelligent
RichInteractions
CollaborativeService
Increasing Competition
Improving Infrastructure
Multiple Media for Single
Interaction
Costs - Shift from Capex to
Opex
11
CollaborativeEngagement
Servicein the
Cloud
IntelligentService
Social Media boom
Gen Y –Changing
expectations
Need for Personalization
More with Less
Agenda
1
2 Unified Communications Adoption Trends
ICT Megatrends
12
IP Telephony
Video Conferencing
Unified Messaging
PBX
Audio Conferencing
Key Telephone System
Centrex
2005
2012
Dynamic Industry
13
2012
Unified Communications
CollaborationVideo Conferencing
TelePresenceWeb Conferencing
PresenceInstant Messaging
IP Telephony
Mobility ExtensionEnterprise Social Networks
Cloud Communications
Promise of Unified Communications
Presence
Pre
sence P
resen
ce
Telephony Email
IMUMUn
ifie
dC
om
mu
nic
ati
on
s
Enterprise UserCommunications Tools
Presence
Pre
sence P
resen
ce
TelephonyTelephony EmailEmail
IMIMUMUMUn
ifie
dC
om
mu
nic
ati
on
s
Enterprise UserCommunications Tools
Anytime, Anywhere, Any Device
Improve User Productivity through a Seamless Communications
Experience
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PresenceMobileConferencing
CRM SCM Communications related Business
Process ApplicationsContact Center
Co
mm
un
icati
on
s
Ho
rizo
nta
l B
usin
ess
Pro
cess A
pp
s
ERP
PresenceMobileMobileConferencingConferencing
CRM SCM Communications related Business
Process ApplicationsContact Center
Co
mm
un
icati
on
s
Ho
rizo
nta
l B
usin
ess
Pro
cess A
pp
s
ERP
Faster response time & business agility
Communications enabled Business Processes
Investment in the last 3 years
10%
20%
30%
40%
CA
GR
(2
00
8-2
01
0)
US
$ M
illi
on
Over $10.5 Billion spent on UC Hardware & Software over the last 2 years; Growth only in IP Tel, Instant Messaging, Mobility, and Conferencing solutions
Asia Pacific excluding Japan Unified Communications Market Spending, 2008-2010
15
-30%
-20%
-10%
0%
CA
GR
(2
00
8
US
$ M
illi
on
2008 2009 2010 CAGR
IP Telephony08-09: -30.3%09-10: 12.4%
10-11: 8.5%(e)
Key changes in the last 3 years
Commoditization of the PBXShift towards software-based solutionsIncreasing adoption of soft phonesIP Telephony >12% in 2010
Telephony
Cost cutting drove investments in Video toolsEnterprise-wide collaboration with Web ConferencingReducing price points & Cloud offerings driving adoption
Conferencing
-17%
+12%
CAGR (2008-2010)TrendsApplication
16
Reducing price points & Cloud offerings driving adoption
Security was the main driver for Enterprise IM adoptionPresence becomes more mainstream in the EnterpriseUnified Clients with Voice, Video, IM & Conferencing emerge
Instant Messaging
Mobility a key theme – Adoption of soft phones a startExtension to Cellular, Push Mail & Mobile clients gain interestMultiple networks, devices & platform continue to be a challenge
Mobility
+12%
+35%
Growth Applications
$2,144
$1,102 $1,252
8%
12%
16%
US
$ M
illi
on
Revenue ($ Million) � Integration is a big driver
� Software endpoint clients are gaining momentum
� Virtualization will drive further growth
17
$938
$675 $616
$1,102
0%
4%
8%
Video Contact Centers
Conf. Services
2011 2017 CAGR
� Increasing focus by customers in a utility model
� Growth in the SMB segment to be driven by software & services
� Cloud platforms are gaining momentum
Growth Opportunities – Unified Communications
CAGR (2010 – 2016)
16.1%
10.9%
10.0%
Mobility
Unified Messaging
UC-as-a-Service
$10.0 Bn
$5.90 Bn
$5.45 Bn
UC +CC Market Opportunity, APAC
18
2009 2010 2016
Telephony Email
Contact Centers Conferencing & Collaboration
IM/Presence Mobility
Unified Messaging UC-as-a-Service
6.0%
8.1%
9.5%
13.7%
13.5%
Telephony
Contact Centers
Audio, Video & Web
IM & Presence
Source: Frost & Sullivan
Interplay of devices and delivery models
On Device
On Demand
� BYOD adoption to explode
� Interplay between on-device, on-demand, and on-premise
� Hybrid models to drive TCO
� SMB and Large Enterprises
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On Demand
On Premise
Network Foundation
� SMB and Large Enterprises have different demands
� Virtualization expected to drive integration
#1: Rich Communications – Pervasive Video
Video–Video–
VC Desktop Systems
VC Desktop Systems
VC Room
Systems
VC Room
Systems
Immersive Telepresenc
e
Immersive Telepresenc
e
Inc
rea
sin
g q
ua
lity
an
d f
ea
ture
sIn
cre
as
ing
qu
ali
ty a
nd
fe
atu
res
Qu
ali
ty o
f th
e M
ee
tin
g E
xp
eri
en
ce
20
Video Softwar
e
Video Softwar
e
Video–phonesVideo–phones
Falling average pricesFalling average prices Inc
rea
sin
g q
ua
lity
an
d f
ea
ture
sIn
cre
as
ing
qu
ali
ty a
nd
fe
atu
res
Video moves beyond the Boardroom into the DesktopMore than $1 Billion Market by 2015
Relative Cost of Solution
Qu
ali
ty o
f th
e M
ee
tin
g E
xp
eri
en
ce
$100$100 $100,000$100,000$10,000$10,000$1000$1000
#1: Rich Communications – Context & Presence Aware
Deg
ree o
f co
mp
lexit
y in
th
e p
rocess
Context-Aware Communications
Collaboration-enabled
Business Process
Information-centric processes
21
Number of people in the business process
Deg
ree o
f co
mp
lexit
y in
th
e p
rocess
Communication-enabled
Business Process
Approval or Notification Processes
Embedding Communications, Extracting the right information & context, and Engaging on the right media will enable a truly Collaboration-
enabled Enterprise
#1: Rich Customer Service Interactions
Context Aware Interactions
New ways to “access” service –Multimedia & Multimodal
Media agnostic integration/mash-up of customer information, customer history, transaction history
22
Multimedia & Multimodal
Video in the Contact Center
Leverage smart phones to deliver service on the go – Mobile apps become the new IVR
Push video content as Advertising/Promotion, or fortechnical support
#2: Collaborative Communications – Enterprise Social Networking
Customer Collaboration Internal Collaboration
Social Media for Customer Care – Use social media as a
channel to connect with customers/partners
Collaborate with Customers & Partners over
public social networks such as
Encourage collaboration across geographically dispersed teams
Quick information sharing across the enterprise through social platforms
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public social networks such as Facebook, Twitter
Broadcast messages to
large audience through the power of social networking (Marketing & PR)
Monitor, Participate & Track activity on social networks
platforms
Collaboration platform for enterprise users for specific initiatives –
Create Groups & Communities
Attract Gen Y employees to the company
#2: Collaborative Communications – Conferencing & ESN
� Growth in excess of 25% in the Web Conferencing Software & Services market
� Adoption across horizontal & vertical segments
Conferencing Enterprise Social Networking
� Enterprise-grade solutions for Social Collaboration emerging in the market
� Market adoption to see sharp increase in 2012
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segments
� Bundled Audio + Web + Video Conferencing play
� Enabling Enterprise-wide adoption of Collaboration
Asia Pacific Enterprise Social Networking Software Market
2008 2009 2010 2011 2012
Total Market 5.2 11.0 20.9 34.2 62.8
Growth % 110.5% 89.3% 64.0% 83.7%
0%
20%
40%
60%
80%
100%
120%
0
10
20
30
40
50
60
70
Revenue G
row
th R
ate
(%
)
Revenues (
$ M
illio
n)
#3:Cloud Communications – Shift towards Cloud
1000
1500
2000
2500
Reven
ues (
US
$ M
illi
on
)
$1.6 Bn
$2.3 Bn Emergence of new players in the market
Conferencing services market doubled in the
last 5 years, and expected to double again
in the next 6 years
25
0
500
2010 2014
Reven
ues (
US
$ M
illi
on
)
Telephony Contact Center Collaboration
Email Web/Social
in the next 6 years
Hosted Contact Center & Email opportunity gaining strong interest
Hybrid models for delivering communications partly in the cloud and partly on-premise will become popular in the next 2-3 years
#3:Customer Service in the Cloud
• Close to 100,000 contact center seats on a hosted
platform in Asia Pacific
• Contact Center in the Cloud is gaining strong interest,
and growing at a CAGR of over 20% in the next 5
Contact Center in the Cloud
26
and growing at a CAGR of over 20% in the next 5
years
• Flexibility, Scalability, Peak Demand, Cost and
Remote Agents are key drivers for CC in the Cloud
• More than 30 service provider s offering hosted
contact center services in Asia Pacific
#4: Intelligent Service – Leveraging Analytics
Web
SocialWhat are the top queries from customers?
Top reasons for customer churn?
Identify patterns that determine churn & have service recovery?
Multi-media Analytics
Data Analytics
27
Voice
churn & have service recovery?
Competitive insights?
Effectiveness of Marketing campaigns?
Reasons for long calls or escalation?
Agent coaching & monitoring
Data Analytics
Speech Analytics
CRM Data
Key Takeaway Messages
� Unified Communications & Collaboration industry to grow in the range of 9%-11% in Asia Pacific
� Video is the new voice, video integration has become the killer-app
� Integration is increasing, pure-play players will need to innovate
� BYOD will usher mobility applications into the enterprise faster than previous projections
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� Hybrid delivery models will begin to see adoption as vendors tightly integrate their on-premise & cloud stories & partnerships with cloud service providers emerge
� Education around Social Collaboration tools with some early adopters
� Social Media for Customer Care to see real deployments
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Thank you
Nitin Bhat
Senior Vice President
ICT Practice Asia Pacific
Donna Jeremiah,
Donna Jeremiah
Director, Corporate Communications
Asia Pacific
61 2 8247 8927
30
Carrie Low
Corporate Communications
Asia Pacific
+603 6204 5910
Jessie Loh
Corporate Communications
Asia Pacific
+65 6890 0942
Thank You
31
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