Growth Opportunities and Challenges in the Web
Collaboration Market
August 27, 2009
Roopam Jain Krithi Rao
Principal Analyst - Unified Industry Analyst – Unified
Communications Communications

Focus Points
Market Segmentation – How Do We Cover Web Collaboration?
Market Overview- Continued Growth Momentum
Key Drivers for Growth
The Evolving Business Case for Web Collaboration
Trends in Web Conferencing Markets
Webinar/Web Events - Key Trends and Growth
Remote Support Market – Key Trends and Growth
Q&A
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Web Conferencing & Collaboration - Market Segmentation
Web Collaboration
Web Web Conferencing Webcasting
Conferencing Services Clientless
On-Premise Remote Support
Software SaaS vendors’ Solutions
Sales (direct to
users and through
Resellers)
Web Meetings
Webinars
Reseller Sales
Source: Frost & Sullivan
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Web Collaboration - Continued Growth Momentum Despite Recession
Web Collaboration Growth Stats 2008
Global web conferencing SaaS revenues grew by 17% reaching $989.4 million in 2008. The cost
savings message is resonating well in a tough economy.
Revenues for Web Events (webinar and webcasting solutions) reached $173.2 million in 2008.
Webinars represent ~10% of web conferencing revenues.
Web conferencing on-premise software has seen slower uptake and reached $214.6 million in
2008, growing by 10.4% over the previous year. Unified Communications will accelerate adoption
of on-premise web conferencing over the next several years.
Global web-based remote support market (an adjacent market since several web conferencing
vendors also offer attended remote support) reached $176.9 million in revenues in 2008, growing
by 27.4% over 2007.
Total Web Collaboration Industry *
A $1.5 billion market in 2008 forecast to reach $ 4.5 Billion by 2014
- 6 Year CAGR is 19.6%
*Includes the global hosted web conferencing services, on-premise web conferencing software, web events,
and remote support markets. This study covers the web conferencing hosted services market. Frost & Sullivan
offers in depth analysis of each of these markets.
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Key Factors Impacting Growth in Web Conferencing and
Collaboration
Globalization
Green Imperatives Travel Cost
Savings and ROI
Web Collaboration
Consumer Video Impact of
Market Factors
(Skype, Google) Recession
Web 2.0 Migration to
Evolution and UC
Impact of
Greater
Gen-Yers
Awareness/
Ease of Use Source: Frost & Sullivan
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Web Conferencing
Evolution of the Business Case
While a lot of the focus in 2009 is on cost savings, business cases, and ROIs, the long term approach to
using web conferencing will be strategic, i.e. business process-centric collaboration resulting in process
improvements and better business practices.
Strategic
Competitive Advantage
Integration with Business Processes
Productivity Improvements
UC, Collaboration, Presence
Reduced Cost of Ownership
Tactical
Reduced Travel Costs
2007 2012+
Source: Frost & Sullivan
6

Growing Awareness for Web Conferencing
A recent Frost & Sullivan end user survey of C-level execs indicates that awareness for web conferencing is high.
While we suspect that the respondents may have mixed their consumer and enterprise video and web
communications awareness, it is an overall positive indication for the web collaboration industry.
Awareness of Communications and Collaboration Tools
(N=102)
Video Conferencing 92%
Instant Messaging 88%
Web Conferencing 84%
Audio Conferencing 82%
VoIP 82%
Unified Messaging 53%
Presence Information 48%
Telepresence 34%
Unified Communications 31%
0% 20% 40% 60% 80% 100%
Note: Multiple mention question.
Source: Frost & Sullivan
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Web Conferencing as a Critical Communication Tool – Importance
Still Being Established
The same survey showed a lower rating for the importance of web conferencing in the enterprise, indicating that the
business case for web conferencing as a standard communication tool is still being established.
Importance of Communications and Collaboration Tools
(N=102)
Very Important Somewhat Important Neither Somewhat Unimportant Not-at-all Important
VoIP 68% 16% 10% 5%
Audio Conferencing 65% 28% 6%
Instant Messaging 51% 38% 11%
Presence Information 49% 24% 16% 7%
Web Conferencing 49% 36% 12%
Video Conferencing 45% 36% 13% 6%
Unified Messaging 37% 37% 26%
Unified Communications 33% 41% 26%
Telepresence 30% 43% 20% 5%
0% 20% 40% 60% 80% 100%
Source: Frost & Sullivan
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Hosted Web Conferencing Services - Regional Growth
EU
17.8% in 2008
vs.
18.6% in 2007
NA APAC
77.8% in 2008 4.4% in 2008
vs. vs.
77.4% in 2007 4.0% in 2007
Revenue Growth
NA - 18.6%; EU – 12.8%; APAC – 29.6%
NA - strong momentum despite a recessionary economy
EU - moderate growth, impact of currency fluctuations
APAC - growth primarily coming from regional vendors
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SaaS and On-Premise Markets
New business models emerge - traditional software vendors redefine themselves and put
a stake in the “cloud”
Recessionary economy triggers SaaS uptake while On-Premise adoption has been
slower than expected (SaaS revenues 82% vs 18% On-Premise in 2008)
Vendors moving from an “either/or” approach to “software plus service” approach
World Web Conferencing Market: Revenues by SaaS vs.
On Premise Software, 2008
SaaS
82%
On Premise
18%
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Key Web Conferencing Trends
• Ease of use and simpler pricing model promote unlimited usage/named user
model
• Changing competitive landscape - Collaboration bundles are evolving in the
SaaS marketplace; UC vendors beef up built-in conferencing
• VoIP integration and usage has accelerated due to cost efficiencies; pricing
pressures will intensify pressure on revenue growth
• Decision shifting to IT - Key stakeholders included in decision making
• Increasing SMB focus; service delivery and pricing are key
• Light weight vendors gain traction - getting rid of “needless complexity” and
cutting out on bells and whistles for target markets
• Strong Application Focus – Sales/Marketing, Training, and Support remain key
apps
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Web Events Market
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Web Events – Webinars/Webcasting Trends
Global revenues reached $173.2 million in 2008. Although 2009 will be a year of
moderate growth, we project revenues to reach $400 million by 2014
Organizations will tighten their belts in 2009, and will begin to spend smartly in
Q409/Q110
Web events is gaining traction, albeit not as quickly as the vendors would like
The technologies needed to support a web event (i.e higher bandwidth, superior video
quality) have enabled web event services vendors to evolve their solutions into a
legitimate marketing tool
Lead gen/non-essential corporate training down in Q109, impacting growth
Product confusion – market should be defined by business behavior, business
requirements, customer expectations
Consolidation will occur as this is very much a fragmented market
Pricing will come down as competitive pressures from larger web conferencing vendors
increase
A fast emerging market for virtual events
N619-64 13

Web Events Market – Understanding the Differences
The market has not done a good job of educating enterprises on the differences and value add that web
events offer, which remains a key challenge for adoption of web events. While smaller collaborative web
meetings and larger web events have several features that are similar in nature, the end goal is different.
Many similarities, but different expectations for outcome
Webcasting Web Conferencing
• Planned event with a set start/end • Ad hoc or scheduling
time done on short notice
• Streamed live audio/video • Interactive; open
• Set agenda/advanced registration dialogue
• Presenter to many • No/ limited company
• Customized branding branding
• Highly scalable • Limited scalability
• More moderated, controlled • Limited reporting/ post
environment event functionality
• Extensive reporting/post event
functionality • Pricing models still
evolving
Common traits include: collaborative solution; linear and non-linear; audio/Video/desktop sharing capabilities;
licensing models
N619-64 14

Web-based Clientless Remote Support
Market
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Market Size
Web-based Clientless Remote Support Software Market: Total Market Size (World), 2007-2008
$176.9 Million
$138.8 Million
4 %
27.
Note: All figures are rounded;
2007 2008 Source: Frost & Sullivan
Businesses are being compelled to “do more with less” and improve service and support internally
for employees and externally for customers.
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Revenue Forecasts
Web-based Clientless Remote Support Software Market: Revenue Forecasts (World),
2007–2014
Increasing number of
telecommuters, remote
Revenue Growth (%)
workers and mobile workers
Revenues ($ Million)
$176.9 million
Pricing pressures due to
increased competition.
Larger web conferencing
vendors bundle remote
support licenses with other
web collaboration licenses
2007 2008 2009 2010 2011 2012 2013 2014
causing price pressures.
Revenues ($ Million) Revenue Growth (%)
Note: All figures are rounded;
Source: Frost & Sullivan
With the economy forcing businesses to do more with less combined with the shortage of skilled IT
workers at each location, Frost & Sullivan expects the remote support market to experience high growth.
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Major Findings
Web-based Clientless Remote Support Software Market: Revenue Forecasts (World),
2007–2014
Primary features –
Customization (to allow
businesses to overlay their own
brand on the product, when
$176.9 $366 providing support to customers);
Million Million Integration with other enterprise
systems like CRM or helpdesk
ticketing software;
Mobile support, secure
“anywhere” support that allows
Dedicated technical support professional to
Remote Support Total Market Size administer support from any PC
Market or mobile device
(Dedicated remote support products
+ use of web conferencing tools for
Mac support both on the user end
remote support) and the tech support rep end
Note: All figures are rounded;
Source: Frost & Sullivan
As the market need for specialized remote support capabilities increases, we see customers moving
to purpose built remote support products
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Key Market Share Holders - Web Collaboration
Web Conferencing Web Events Remote Support
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Conclusions
Travel cost savings and productivity benefits will continue to be key
drivers
Web conferencing and collaboration represent high growth markets
Ease of use and pricing will be key growth factors
SaaS will remain the dominant delivery mode
Shifting business models for key vendors will result in a fast changing
competitive landscape
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For Additional Information
Jake Wengroff Craig Hays
Global Director Sales Manager
Corporate Communications Information & Communication
210.247.3806 Technologies
jake.wengroff@frost.com (210) 247-2460
chays@frost.com
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Communications
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epopova@frost.com
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