2011 Collaboration Trends in South Korea What Lies Ahead?


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Frost & Sullivan anaysis of 2011 Collaboration Trends in South Korea

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2011 Collaboration Trends in South Korea What Lies Ahead?

  1. 1. 2011 Collaboration Trends in South Korea What Lies Ahead?
  2. 2. Focus PointsAgenda• Top Trends in Collaboration• Market Outlook in South Korea & Asia Pacific• Conclusion & Key Take Aways 2
  3. 3. Top Trends in Collaboration 3
  4. 4. Video, Cloud Services & Social Media are the three bigtrends in the UCC market today “Successful enterprises of the future will increasingly deploy video, cloud services, and social applications as part of their business processes”• Across the • SaaS adoption • Engaging Gen Y Enterprise booms • Enterprise Social• B2B Video • Collaboration Media Conferencing platforms emerge • Marketing &• Consumer/ B2C • CaaS, CRM Customer Service VideoVideo Cloud Social 4
  5. 5. Collaboration Applications expected to lead in growthduring forecast period in APAC APAC On-Premise Applications CAGR (2010 – 2016) Market Opportunity $6.86 Bn Unified Messaging 10.9% $4.10 Bn Mobility 16.1% $3.82 Bn IM & Presence 13.5% Audio, Video & Web 13.7% Contact Centers 8.9% Email 8.1% 2009 2010 2016 IP Telephony 9.5% Traditional Telephony IP Telephony Email Contact Centers Conferencing & Collaboration IM/Presence Traditional Telephony -1.8% Mobility Unified Messaging Source: Frost & Sullivan 5
  6. 6. The case for S.Korea is similar S.Korea On-Premise Applications CAGR (2010 – 2016) Market Opportunity $318.5M $301.1M Unified Messaging 6.8% $287.5M Mobility 14.8% IM & Presence 16.3% Audio, Video & Web 12.1% Contact Centers 12.0% Email 5.8% 2009 2010 2016 Traditional Telephony IP Telephony 7.9% IP Telephony Email Unified Messaging IM/Presence Traditional Telephony -2.7% Conferencing & Collaboration Source: Frost & Sullivan 6
  7. 7. Convergence of Industries as Collaboration Evolves Software vendorsVideo Solutions Providers Infrastructure vendorsConferencing Services Providers UC & Network operators Collaboration Others Source: Frost & Sullivan 7
  8. 8. Paradigm Shift in User Experience Blurring of boundaries between product segments as technology improves and prices fall Immersive Increasing quality and features Telepresence Quality of the Meeting Experience VC Room Systems VC Desktop Systems Video– phones Video Software Falling average prices $100 $1000 $10,000 $100,000 Relative Cost of Solution Source: Frost & Sullivan 8
  9. 9. The Five ‘Ages’ of Visual Communications1st Age - $30K proprietary codecs, using expensive private T1/E1circuits (e.g. ‘BT Megastream’ ) between locations2nd Age - H.320 standard emerges and flexibility from use ofswitched digital networks, such as ISDN3rd Age - Introduction of graphic user interface and ease of use,putting control in the hands of the user4th Age - Use H.323 standard and IP to connectendpoints over the public Internet and developmentof software-based clients for use with PCs5th Age - Introduction of high-definition videoand 22 kHz audio established at top end, andthe subsequent fall in prices … and take-offof consumer services 9
  10. 10. Video solutions are in a state of transition; segments areincreasingly less defined Interoperability Required Across Endpoint Portfolio Users’ Scope and Flexibility Needs Extended Mobile Executive Immersive Personal Group Application PC-based Video- Desktop Room Custom Video & Web Conferencing phones Appliances Systems Solutions Blurring of Product Segment Boundaries, especially in the low-end and between Room-Based VC & Telepresence Source: Frost & Sullivan 10
  11. 11. Roadblocks to Greater Video Adoption in Korea • Limited opportunity due to high endpoint prices, but situation is Cost improving • Operational costs worry enterprises • Company infrastructure was not designed for Video Infrastructure • Greater preference in face to face meeting • Confusion on how to integrate video Integration & with existing communication solns. • Perception of an expensive Awareness technology 11
  12. 12. Mid-Range Video Solutions are the Largest MarketSegment Today Executive •The mid and entry level sectors are Desktops showing higher enterprise demand, Software •solutions such as Lifesize Express 200 are Solutions increasing in popularity •Immersive Telepresence prices have dropped drastically from $300k MSRP to Telepresence street pricing of less than $150k for a typical 3-screen solutionRoom Based VC •Desktop video as standalone or integrated 2010 South Korean with web has reached mainstream;Visual Communications Markets •Japan & Korea continue to be leading Revenue: $16.1 Million adopters Source: Frost & Sullivan 12
  13. 13. South Korean Video Market Opportunity $39.1Mn S.Korean Visual Communications Market Outlook CAGR (2009-2016): 15.0% $16.1 Mn $14.7Mn 2009 2010 2016 Source: Frost & Sullivan•Government & Corporate are key •The Immersive Telepresence market ismarket drivers seeing increasing activity•SMB growing in contribution due to • HD Adoption is driving growthavailability of suitable solutions 13
  14. 14. APAC Collaboration in the Cloud continues its highgrowth: Audio, Video and Web SaaS Conferencing Market Size: $1.12 Bn Market Size: $549 Mn Market Size: $256 Mn •Market size doubled in the last 5 years, expected to double again in 5 years •Audio growth is the lowest at a CAGR of 9%, whereas web is expected to grow at CAGR of 23.4% Source: Frost & Sullivan 14
  15. 15. SaaS Collaboration Booms 30% Web Web 25%CAGR (2010-2016) 20% 2010 Video 15% Video Audio 10% Web 5% Audio 0% 2016 Video 0% 10% 20% 30% 40% 2010 Growth Rate % AudioSource: Frost & Sullivan Source: Frost & Sullivan•Web Collaboration has the highest market •Web market share expected togrowth potential, at approx. 25% CAGR increase from 17.9% to 34.5% by•Video Bridging expected to be slowest 2016growing segment •Audio Conferencing expected to•Audio Conf. to focus on smaller markets slow as market saturates 15
  16. 16. SaaS Collaboration in 2010 by Sub-Region •Japan is the largest and web collaboration services market, China the smallest •Chinese market is heavily dominated by local on-premise vendors Source: Frost & Sullivan •ANZ market is most mature, with ASEAN 2010 Asia Pacific usage mostly from SaaS Collaboration Markets Singapore Revenue: $549 Million 16
  17. 17. Social Networks: A Big Opportunity in the Making?Synchronous •Web Collaboration Cloud •Video Conferencing Services Big Opportunity •Project Management & ? Team Collaboration •Social Applications Social (Wikis, Blogs, Apps Communities etc.) •Content Management solutionsAsynchronous Source: Frost & Sullivan 17
  18. 18. Social Applications for Business Still in its Infancy in AsiaPacific 2010 Asia Pacific (ex.Japan) Enterprise Social Applications: $15.9 Million•The Asia Pacific Market is in its infancy $97.7•Australia is the leading adopter of social mediafor business•Sales, Marketing & Customer Support areleading applications•Team Collaboration/ Project Mgmt. solutions onthe rise•2 types of competitors: pure-play SaaS, ECMproviders $15.9 $8.5 2009 2010 2014 18
  19. 19. Challenges with Social Media for Business Use Return on • How does an organization measure Investment benefits (tangible & intangible)? • “Can a facebook-esque application Perceived Loss really be useful for my company?” of Productivity • “I’m afraid employees will be wasting time instead of working” • Data access and security policies Decentralization • Employees empowered to create & Control Issues • Informal culture and litigation 19
  20. 20. Conclusion & Key Take Aways 20
  21. 21. Predictions for 2011 in South Korea• Video growth expected to increase from 7-10% in 2009/2010 to 10-15% in 2011• Immersive telepresence Adoption expected to increase• Social Media Applications growth expected to remain high in select segments such as customer contact, however enterprise growth is a challenge• Hosted applications such as hosted email continue to increase adoption in the small to mid market, however some organizations still want on-premise• Greater focus on mobility integrated into various UC Applications• SaaS Collaboration (audio, video, web) to grow overall at 15-20%• Verticals such as education are expected to see increased growth, especially in distance learning 21
  22. 22. Thank you for Listening! Questions? 22
  23. 23. Follow Frost & Sullivan on Facebook, LinkedIn,SlideShare, and Twitter http://www.facebook.com/FrostandSullivan http://www.linkedin.com/companies/4506 http://www.slideshare.net/FrostandSullivan http://twitter.com/frost_sullivan 23
  24. 24. For Additional Information Donna Jeremiah Mi Ok Lee Corporate Communications Corporate Communications Asia Pacific Asia Pacific - Korea +603 6204 5832 +82 2 6710 2033 djeremiah@frost.com Miok.lee@frost.com Nitin Bhat Partner Asia Pacific ICT +65 6890 0999 nbhat@frost.com 24