Frost Industry Quotient (IQ): Asia-Pacific Collaboration Service Market, 2013 CONTENTS
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Frost Industry Quotient (IQ): Asia-Pacific Collaboration Service Market, 2013 CONTENTS 1. Market Definition and Scope .......................................................................3 2. Market Assessment ......................................................................................4 2.1 Market Size and Forecast ..........................................................................4 2.2 Competitive Landscape .............................................................................6 2.3 Market Share .............................................................................................7 3. Industry Trends ............................................................................................8 3.1 Regulatory .................................................................................................8 3.2 Economic ...................................................................................................8 3.3 Technology .................................................................................................9 3.4 Competition ..............................................................................................9 4. Frost IQ Matrix: Asia-Pacific Collaboration Service Providers, 2013 ...........10 5. Profiles of Collaboration Service Providers ................................................11 5.1 InterCall ....................................................................................................11 5.2 Arkadin ......................................................................................................11 5.3 PGi ............................................................................................................12 5.4 Cisco ..........................................................................................................12 5.5 Telstra ........................................................................................................12 5.6 BT ..............................................................................................................13 5.7 Verizon .......................................................................................................13 5.8 NTT Com ...................................................................................................13 5.9 AT&T ..........................................................................................................14 5.10 Quanshi (Aka GNET) ...............................................................................14 5.11 Citrix Online ............................................................................................14 5.12 IOCOM ....................................................................................................14 6. The Analyst Word .........................................................................................15 7. Frost IQ Methodology ..................................................................................16 7.1 Market Share .............................................................................................16 7.2 Growth Strategy ........................................................................................16 ASIA-PACIFIC COLLABORATION SERVICE MARKET, 2013 1. Market Definition and Scope The term ‘collaboration services market’ refers to cloud and hosted offerings of audio, video and web conferencing services delivered as stand-alone or integrated models. Among these three segments, audio conferencing services market is at the most mature stage, while video bridging services market is gaining popularity and customer attention. At a time when most enterprises are struggling to grow their business in the highly interdependent and uncertain global economic situation, the impact of price competition is being felt by the existing service providers of collaboration services. Meanwhile, the market faces emerging competition from countries such as China, India and Japan. The scope of this research study only covers cloud-based services using virtualized software in a service provider cloud in either private or shared architectures. Premises-based collaboration solutions are excluded from this study. Total market size and forecast are calculated based on recurring revenue from audio, video and web conferencing services, with pay-as-you-go and monthly flat rate as the primary pricing models available in the market. Figure 1: Asia Pacific Collaboration Services Market: Market Segmentation, 2013 Source: Frost & Sullivan analysis Collaboration services can be categorized into the following segments: • Audio Conferencing Services: Enterprise-grade, two-way, full-duplex, interactive audio call between two or more parties. • Video Conferencing Services: Interactive meeting services that enable two or more participants at different locations to transmit audio and video data. It contains video bridging services, inter-carrier exchange services, equipment rental services, public room services, and on-site support & management services and so on. frost.com 3 • Web Conferencing Services: Services that deliver an Internet-based, real- time, synchronous meeting environment that can be utilized for either presentation or collaboration. The most basic feature of a Web conference is the ability to share screens, whereby conference participants see whatever is on the presenter's screen. • Others: Includes events, webcast and webinar services, which are interactive meetings/seminars conducted via the World Wide Web. It is usually a live presentation, lecture or workshop that happens in real time, as users participate through chatting, video-chatting, file-sharing, or asking questions with a microphone. 2. Market Assessment 2.1 Market Size and Forecasts The collaboration services market in Asia Pacific is expected to grow at a compound annual growth rate (CAGR) of 10.9 percent over the 2012-2018 period to reach $1,209 million by 2018. Figure 2: Asia Pacific Collaboration Services Market: Revenue Forecast, 2012 Source: Frost & Sullivan analysis • The audio conferencing services market is moving into the mature stage in major countries in Asia Pacific region, hence we expect a moderate CAGR of 8.1 percent from 2012 to 2018, with revenues hitting $489.0 million in 2012, though the year-on-year revenue growth rate kept declining during the last five years. The growth decline was seen among the mature economies like Australia, Singapore and Japan. However, emerging countries like China, India and selected ASEAN countries registered strong growth both in their new customers’ acquisition and net usage across existing customer bases. 4 frost.com • Web conferencing services are expected to lead the growth in short term. Asia Pacific web conferencing services market continued to be the fastest growing region globally in 2012. However the market has reached a stage where products and services offered seem to have similar features and functionalities. Hence, moving forward, product and service differentiation has become a vital factor to win customers. • There is also growing interest from enterprises in adopting video, either in a leased manner or to have it managed end-to-end from the service provider. The market awareness of video collaboration services including bridging and exchange services in developed economies is growing rapidly. Australia, New Zealand, Japan and Korea showed increasing adoption of bridging and mobile video services. Figure 3: Asia Pacific Collaboration Services Market: Percent Sales Breakdown, 2012 Source: Frost & Sullivan analysis • Over-the-top (OTT) vendors like Google are expected to make an impact in the video collaboration services market in the next 3-5 years. As OTT platforms continue to proliferate, multi-party video collaboration is likely to be part of the next phase of technology development. Small-to-Medium Enterprises (SME) are anticipated to be the target customer in the short run. • The Asia-Pacific market is expected to have a fairly positive outlook for the next five to seven years. The continuing downward pressure on price will inhibit the market growth during forecast period. Prices have declined by 5 to15 percent in Asia-Pacific, as service provides offer more flexible integration across audio, video and web platforms at the same or reduced prices. Hence, there could be brisk growth in usage; however, revenues could suffer, if there are drastic price declines. frost.com 5 • The market competition is diversified with a greater variety of market participants—including incumbent telecom operators, conferencing service providers, cloud service providers and even large system integrators. • Manufacturing, banking and financial institutions, healthcare and transportation sectors are expected to be the key verticals in driving demand for collaboration services. In addition, the education sector in China and India, along with the oil and gas industries in India, Australia, and China are expected to provide opportunities for collaboration services during the forecast period. 2.2 Competitive Landscape The market participants may be classified into two broad categories. Figure 4: Classification of Collaboration Services Market Participants, 2012 Source: Frost & Sullivan analysis Telecom operators, including both global and regional telecom companies, have been offering self-branded collaboration services as part of their enterprise offerings for the past ten years. They are the pioneers in the industry and have contributed significantly to the industry by increasing the market