The Rise of Unified Communications-as-a-Service Market in Asia Pacific


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The Rise of Unified Communications-as-a-Service Market in Asia Pacific

  1. 1. 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.
  2. 2. 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.
  3. 3. Guest Presenter Vijay Venugopalan is responsible for BT Global Services’ CRM and UC Practice Business across Asia, 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 3 Asia, Middle East Africa (AMEA). Vijay is responsible for the overall P&L for the company’s Contact 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 complex contact centre and collaboration solutions in Europe, and Asia Pacific markets. Prior to joining BT, Vijay was Asia Pacific head of Managed Services and Consulting at Servion Global Solutions, responsible for contact centre consulting assignments and building strategies for contact centre managed services businesses across the region. Vijay joined BT in 2008 and he holds an engineering degree in Electronics and Communication and a master's degree in Business Administration from Insead and Tsinghua University.
  4. 4. Agenda • Market Dynamics and trends in UCaaS Market • Growth Opportunities in Asia Pacific • Key Considerations of Migrating to UCaaS 4 • Key Considerations of Migrating to UCaaS • The framework of UCaaS • Key Takeaways
  5. 5. 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 5 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
  6. 6. Interplay of devices and delivery models • BYOD • Cloud platforms • Hybrid models • Virtualization expected to • BYOD • Cloud platforms • Hybrid models 6 • Virtualization expected to drive integration • Professional services • Security & control • Virtualization expected to drive integration • Professional services • Security & control
  7. 7. 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 estimates Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis.
  8. 8. 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) 8 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.
  9. 9. UCaaS vs. On-Premise GCUCaaS market grew (~12%) faster than UC Product on-premises market (1.2%) 80% 100% 25.8% 30.8% UCRevenue(MnUS$) UCaaS On-Prem 42% 12% 8% UCaaS Market: Revenue Breakout by Service Segments 9 Note: All figures are rounded. The base year is 2012. Source: Frost & Sullivan analysis. 0% 20% 40% 60% 2012 2017 74.2% 69.2% UCRevenue(MnUS$) 42% 38% Conferencing Services Hosted/ Managed Telephony Hosted Contact Centers Other UC Apps
  10. 10. 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 10 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
  11. 11. 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 11 B. Service scalability of up and down C. The increasing demand of mobility and BYOD D. Increased Productivity E. Ease IT Maintenance and Support
  12. 12. Growth Opportunities • OTT and Web RTC • High growth countries – AU, NZ, Korea, Japan 12 Japan • Emerging countries – China, India, HK, ASEAN • SMB sector
  13. 13. 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 13 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
  14. 14. Challenges to Cloud Adoption 3.20 3.26 3.38 3.38 Latency / bandwidthissues connecting toInternet Migrating currentbusiness processes to the Cloud Data security threats / risks to the business Integratingexisting systems and legacy applicationsto the Cloud What are the key challenges toadoptingCloudcomputingin your organization 14 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 regulatoryand compliance issues Lack of skills / resources needed to manage and support Cloud computinginternally Latency / bandwidthissues connecting toInternet (especially for data intensive applications)
  15. 15. 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 15 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
  16. 16. Telcos Lead Provision of UCaaS to Enterprises Service Levels Offerings End to End Enterprise-grade Buyer Considerations Telco Differentiators 16 Pricing Drive Costs Down Utility Virtualized Infrastructure Control the networkManageability Anywhere and on any device Geographic coverage
  17. 17. Conclusions – Key Elements for the Success Total Customer Solutions Best Product Low-cost Rich Feature Set 17 System Lock-in Competitor lock-out Complementor lock-in Total Customer Solutions Redefine customer experience Large and Active User base
  18. 18. 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
  19. 19. 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
  20. 20. We make communications simple… One VoiceOne Collaborate Audio, web and video communications solutions Voice 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
  21. 21. 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
  22. 22. The Collaboration Index 2012 – Unified communications is taking off Segmenting global executives personal use of collaboration tools for work Leader 24% Use Level 1, 2 & 3 UC Adopter Follower Leader Better team work 73% 84% 86% Faster decisions 68% 80% 83% The benefits of collaboration tools 22 Adopter 12% Use Level 1 UC Follower 38% Use Level 1 & Level 2 UC Uninvolved 8% UC not available decisions 68% 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
  23. 23. 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
  24. 24. 24BT One © British Telecommunications plc
  25. 25. 25BT One © British Telecommunications plc
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  27. 27. Next Steps Develop Your Visionary and Innovative Skills Growth Partnership Service Share your growth thought leadership and ideas or join our GIL Global Community 27 Join our GIL Community Newsletter Keep abreast of innovative growth opportunities Phone: +603 6204 5800 Email:
  28. 28. Your Feedback is Important to Us Growth Forecasts? Competitive Structure? What would you like to see from Frost & Sullivan? 28 Emerging Trends? Strategic Recommendations? Other? Please inform us by “Rating” this presentation.
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  30. 30. For Additional Information Donna Jeremiah Corporate Communications Director Industry +61 (02) 8247-8927 Jessie Yu Industry Manager ICT (65) 6890-0237 30 Andrew Milroy Vice President ICT Research (65) 6890-0972 Susan Prakasam Strategic Account Manager ICT (65) 6890-0259