the rise of unified communications-as-a-service market in asia pacific
DESCRIPTION
A Frost & Sullivan analyst briefing.TRANSCRIPT
Asia-Pacific UCaaS Market Updates 2013
Jessie Yu, Industry Manager
ICT
20th August 201320th August 2013
© 2012 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
Today’s Presenter
Jessie Yu, Industry Manager
Frost & Sullivan
Follow me on: (Connect with social media)
Panoramasg
2
Jessie has extensive experience in market research and business development in
Asia Pacific and Greater China. Her expertise includes research service delivery for
the conferencing & collaboration market in Asia Pacific; market entry strategy, product
diversification and differentiation analysis between Chinese vs. global vendors and
profile market opportunities analysis.
Guest Presenter
Vijay Venugopalan is responsible for BT Global Services’ CRM and UC Practice Business acrossAsia, Middle East Africa (AMEA). Vijay is responsible for the overall P&L for the company’s
Vijay Venugopalan, Head of CRM & UC Practice, AMEA
BT Asia Pacific, Singapore
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Asia, Middle East Africa (AMEA). Vijay is responsible for the overall P&L for the company’sContact Centre & UC professional services business in all of BT’s AMEA markets.
Vijay has over 14 years of experience in technical, pre-sales, consulting and delivery of complexcontact centre and collaboration solutions in Europe, and Asia Pacific markets. Prior to joiningBT, Vijay was Asia Pacific head of Managed Services and Consulting at Servion GlobalSolutions, responsible for contact centre consulting assignments and building strategies forcontact centre managed services businesses across the region.
Vijay joined BT in 2008 and he holds an engineering degree in Electronics and Communicationand a master's degree in Business Administration from Insead and Tsinghua University.
Agenda
• Market Dynamics and trends in UCaaS Market
• Growth Opportunities in Asia Pacific
• Key Considerations of Migrating to UCaaS
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• Key Considerations of Migrating to UCaaS
• The framework of UCaaS
• Key Takeaways
Market Definition and Scope
UC-as-a-Service Market: Service Segmentation, Asia-Pacific, 2012
Snapshot of Key Service Offerings
Hosted Telephony UC Apps Collaboration
Hosted Contact Center
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Source: Frost & Sullivan analysis.
Hosted IP PBX
IP Centrex
Centrex
Mobility
Hosted Email
IM/Presence
Unified Messaging
Audio Conferencing Services
Video Conferencing Services
Web Conferencing Services
TC/ESN
Interplay of devices and delivery models
• BYOD
• Cloud platforms
• Hybrid models
• Virtualization expected to
• BYOD
• Cloud platforms
• Hybrid models
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• Virtualization expected to drive integration
• Professional services
• Security & control
• Virtualization expected to drive integration
• Professional services
• Security & control
Mobility and IM/ Presence is the fastest growing application
15.9%
41.0% Key Trends:
• Enterprise telephony and
contact center market is mature
• Email shows moderate growth
• Integration trend – moving from
Year-on-Year Growth 2012
7
2.2%
6.9%
-1.1%
-4.8%
• Integration trend – moving from
base platform of voice and
email to video and mobility
*Preliminary estimatesNote: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
Poll Question #1
Is your company using any type of services below offered by 3rd
parties?
A. Hosted Email
B. Conferencing Services (Audio, video or web)
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Conferencing Services (Audio, video or web)
C. Hosted Telephony
D. Hosted/Could UC Apps including IM/Presence, Mobility, Unified
messaging etc
E. Non of the above.
UCaaS vs. On-Premise
GCUCaaS market grew (~12%) faster than UC Product on-premises market
(1.2%)
80%
100%
25
.8%
30
.8%
UC
Re
ve
nu
e (
Mn
US
$)
UCaaS On-Prem
42%
12%
8%
UCaaS Market: Revenue
Breakout by Service Segments
9
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
0%
20%
40%
60%
2012 2017
74
.2%
69
.2%
UC
Re
ve
nu
e (
Mn
US
$)
42%
38%
Conferencing Services
Hosted/ Managed Telephony
Hosted Contact Centers
Other UC Apps
UCaaS – Growth Accelerates!
Key Trends:
• Telcos rising as key players
• Private cloud UC-deployments
$1.7 Billion Market in 2012
$1,532 $1,726
$1,954 $2,221
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more popular
• Managed/hosted Telephony
growing in maturity
• SMB specific solutions increase
• Professional Services
witnessing demand
Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
2011 2012 2013 2014
$1,532
Poll Question #2
What do you think is the major driving force of your company to deploy UCaaS?
A. Rapid provisioning
B. Service scalability of up and down
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B. Service scalability of up and down
C. The increasing demand of mobility and BYOD
D. Increased Productivity
E. Ease IT Maintenance and Support
Growth Opportunities
• OTT and Web RTC
• High growth countries – AU, NZ, Korea, Japan
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Japan
• Emerging countries –China, India, HK, ASEAN
• SMB sector
Poll Question #3
What do you think is the most challenging factor for the companies to migrate to UCaaS?
A. Service reliability and security
B. Integration with legacy system
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B. Integration with legacy system
C. Network Infrastructure in the countries of business operation
D. Satisfied with the current communication system and no further investment plan
E. Long term ROI
Challenges to Cloud Adoption
3.20
3.26
3.38
3.38
Latency / bandwidth issues connecting to Internet
Migrating current business processes to the Cloud
Data security threats / risks to the business
Integrating existing systems and legacy applications to
the Cloud
What are the key challenges to adopting Cloud computing in your organization
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3.05
3.10
3.13
3.16
3.20
2.80 2.90 3.00 3.10 3.20 3.30 3.40 3.50
Lack of awareness / buy-in from senior management
on the real benefits of Cloud
Cloud offerings are too complicated / difficult to
understand
Managing regulatory and compliance issues
Lack of skills / resources needed to manage and
support Cloud computing internally
Latency / bandwidth issues connecting to Internet
(especially for data intensive applications)
Poll Question #4
What is your opinion on cloud based UC platforms such as Microsoft 365 or BT One?
A. Excellent option because it offers the option of multiple application bundles in a single, affordable price.
B. Excellent option because it can replace on-premise applications
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B. Excellent option because it can replace on-premise applications (such as Email, Instant Messaging, Conferencing, Mobility etc) with cloud based applications
C. Good option because it can easily scale users up and down
D. Not a good option for my company because we have premise-based solutions in place
E. Haven’t heard about it
Telcos Lead Provision of UCaaS to Enterprises
Service Levels
Offerings End to End
Enterprise-grade
Buyer Considerations Telco Differentiators
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Pricing
Drive Costs Down
Utility
Virtualized Infrastructure
Control the networkManageability
Anywhere and on any device
Geographic coverage
Conclusions – Key Elements for the Success
Total Customer Solutions
Best Product
Low-cost Rich Feature Set
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System Lock-in
Competitor lock-out Complementor lock-in
Total Customer Solutions
Redefine customer experience Large and Active User base
Vijay Venugopalan, Head of CRM and UC Practice,
AsiaPac, Middle East & Africa
BT One. Communications that unify
AsiaPac, Middle East & Africa
BT Advise, BT Global Services
We transform the way organizations collaborate…
BT One
BT has been at the forefront of voice for over 150 years
Through our knowledge, experience and capability, we understand how critical voice is:
• We manage over 20 million analogue lines, 100 billion minutes per year and 300 million calls per day
• 84 per cent of the FTSE 100 are our customers
19BT One
• 84 per cent of the FTSE 100 are our customers
• Our managed global network provides coverage and support in 198 countries and territories, used by over 2,800 multinational customers who trust us to deliver a consistent 99.99% availability
• Europe’s largest Hosted IPT installation
We make communications simple…
One VoiceOne Collaborate
Audio, web and video
communications solutionsVoice capabilities that consolidate disparate technologies and suppliers
20BT One
One Cloud One Enterprise
Global IP Telephony and Unified Communications solutions
On-premise IP Telephony and Unified Communications solutions
The Collaboration Paradox:How new collaboration tools enable global executives to get more out of teams and make decisions faster
Global executives want to collaborate more, internally and
externally
But they are restricted by outdated
communication which is leading to slow decision making
21BT One
The Collaboration Index 2012 – Unified communications is taking offSegmenting global executives personal use of collaboration tools for work
Leader 24%Use Level 1, 2 & 3 UC
Adopte
r
Follo
wer
Leader
Better team
work73% 84% 86%
Faster
decisions68% 80% 83%
The benefits of collaboration tools
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Adopter 12%Use Level 1 UC
Follower 38%Use Level 1 & Level 2 UC
Uninvolved 8%UC not available
decisions68% 80% 83%
Improved
customer
service
61% 68% 76%
I feel in more
control of my
work
58% 66% 66%
Green/
environmental
benefits
41% 54% 62%
UC
technology
helps me do
my work
better
70% 81% 82%
Inactive - 18%UC available but not used
22BT One. Communications that unify
BT and Our Customer Managed video conferencing to boost business efficiency
Challenge
• A Japanese Corporation is a market leader in the supply of wire harnesses and components, primarily for the global automotive industry. From its Tokyo headquarters, the company runs 421 sites in 39 countries. Of its total workforce of 210,000 around 190,000 people work outside Japan.
• Keen to reduce business travel for reasons of efficiency and sustainability, the Japanese MNC decided to seek an outsource service provider that could provide an alternative video conferencing solution
Solution
• A BT solution was chosen comprising a mixture of high-definition video
““From the beginning we planned to outsource the operational management of the communication tools as this makes our costs more predictable and allows us to focus on our core business. BT has done a very good job and we are very satisfied with the results of the project. Our top priorities were good quality, stability, and low cost. BT met these conditions better than its competitors.”
Mr Toshiya, Deputy General Manager – IT Systems
23BT One
• A BT solution was chosen comprising a mixture of high-definition video end-points, hosted and fully managed video bridging services, proactive remote equipment monitoring, and the Engage Meeting Manager scheduling and automation tool.
• Wide area connectivity uses the BT IP Connect global network. The BT solution also includes a Japanese and English language helpdesk.
Value
• The solution currently connects more than 20 company sites including many across Japan and those in Bangkok, Shanghai, Detroit, Cologne, and the UK.
• Japanese MNC Corporation now has advanced video conferencing technology that is enabling very effective meetings to take place between remote executives without the inconvenience and cost of travel.
Systems
UCaaService for a
Japanese MNC
24BT One © British Telecommunications plc
25BT One © British Telecommunications plc
bt.com/globalservices
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For Additional Information
Donna Jeremiah
Corporate Communications Director
Industry
+61 (02) 8247-8927
Jessie Yu
Industry Manager
ICT
(65) 6890-0237
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Andrew Milroy
Vice President
ICT Research
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Susan Prakasam
Strategic Account Manager
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