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Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award
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Vidtel: Frost & Sullivan Entrepreneurial Company of the Year Award

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  • 1. 2011 South African Data Centre Green Excellence Award in Technology Innovation Cybernest 2012 2012 North American Video Conferencing Hosted andManaged Services Entrepreneurial Company of the Year Award © 2011 Frost & Sullivan 1 “We Accelerate Growth”
  • 2. BEST PRACTICES RESEARCHEntrepreneurial Company of the YearVideo Conferencing Hosted and Managed Services MarketNorth America, 2012Frost & Sullivan’s Global Research PlatformFrost & Sullivan is in its 50th year in business with a global research organization of 1,800analysts and consultants who monitor more than 300 industries and 250,000 companies.The company’s research philosophy originates with the CEO’s 360-Degree Perspective™,which serves as the foundation of its TEAM Research™ methodology. This unique approachenables us to determine how best-in-class companies worldwide manage growth,innovation and leadership. Based on the findings of this Best Practices research, Frost &Sullivan is proud to present the 2012 North American Entrepreneurial Company of theYear Award in Video Conferencing Hosted and Managed Services Market to Vidtel.Significance of the Entrepreneurial Company of the Year AwardKey Industry Challenges Addressed by Ent repreneurial ExcellenceThe video conferencing market is currently going through an evolution, as enterprises openup to software‐based and cloud‐centric solutions, and begin to regard video as part of abroader Unified Communications (UC) context.A successful new market entrant that is not concerned about cannibalizing legacy hardwarerevenue can be in a prime position to disrupt the marketplace by offering a software, cloud-based service that can increase video conferencing adoption particularly among cost-conscious small and medium businesses. Such an entrant can successfully compete byoffering economies of scale that are not realizable with traditional video conferencingsystems that rely on legacy hardware.The new breed of disruptive cloud-based video conferencing providers can differentiate theirofferings by providing features such as broad connectivity and interoperability across a widerange of platforms. This contrasts with most standard video teleconferencing services,which offer only generic connectivity for H.264 endpoints. Successful new market entrantscan support both legacy standards in addition to any‐to‐any interoperability with newerplatforms, such as Skype and Google. The support of many different vendor endpoints(from vendors such as Cisco/Tandberg, Polycom, LifeSize, ZTE, etc.) is one more element ofpotential success.Another challenge that needs to be addressed by the industry is to harness a greater levelof federation among various service provider networks in order to create a “global videodirectory” but a lot of work still needs to be done in this area. It is very difficult to getservice provider consensus, particularly in larger efforts, as each operator tries to push itsown agenda; additionally, the expense to make this goal reachable is quite high. While the© 2012 Frost & Sullivan 1 “We Accelerate Growth”
  • 3. BEST PRACTICES RESEARCHOpen Visual Communications Consortium (OVCC) effort looks promising, it still remains awork in progress. Hence, in the absence of this global “video dialtone”, the “meet me”invite model (made popular by collaboration applications such as WebEx) will become moreutilized in the video conferencing world. The end-user’s contact list serves as the videodirectory itself, eliminating the need to know the video addresses of other participants. The“meet me” model can reduce the need for IT resources and simplify the end-userexperience, as the video calling address enables easy connection between videoconferencing endpoints anywhere in the world.Finally, one additional criterion for success for a new entrant is the degree of friendlinessoffered to Value-Added Resellers (VARs) and other channel partners, as over 90 percent ofall video conferencing infrastructure is sold via an indirect model. But the level of channelinterest depends on the margin that can be realized on the service. By offering a lower,more disruptive price point, a new entrant might be able to get a higher interest from thechannel as it can increase its margin.Impact of Entreprene urial Company of the Year Aw ard on Key StakeholdersThe Entrepreneurial Company of the Year Award is a prestigious recognition of Vidtel’saccomplishments in the Video Conferencing Hosted and Managed Services Market. Anunbiased, third-party recognition can provide a profound impact in enhancing the brandvalue and accelerating Vidtel’s growth. As captured in Chart 1 below, by researching,ranking, and recognizing those who deliver excellence and best practices in theirrespective endeavors, Frost & Sullivan hopes to inspire, influence, and impact threespecific constituencies: • Investors Investors and shareholders always welcome unbiased and impartial third-party recognition. Similarly, prospective investors and shareholders are drawn to companies with a well-established reputation for excellence. Unbiased validation is the best and most credible way to showcase an organization worthy of investment. • Customers Third-party industry recognition has been proven to be the most effective way to assure customers that they are partnering with an organization that is leading in its field. • Employees This Award represents the creativity and dedication of Vidtel’s executive team and employees. Such public recognition can boost morale and inspire your team to continue its best-in-class pursuit of a strong competitive position for Vidtel.© 2012 Frost & Sullivan 2 “We Accelerate Growth”
  • 4. BEST PRACTICES RESEARCH C ha r t 1 : B es t P ra c t i c es L ev e ra g e f o r Gr ow t h Ac c e l era t i onKey Benchmarking Criteria f or Entrepreneurial Company of the Year Aw ardFor the Entrepreneurial Company of the Year Award, the following criteria were used tobenchmark Vidtel’s performance against key competitors: • Growth Strategy Excellence • Growth Implementation Excellence • Degree of Innovation with Products and Technologies • Leadership in Customer Value • Speed of Response to Market Needs© 2012 Frost & Sullivan 3 “We Accelerate Growth”
  • 5. BEST PRACTICES RESEARCHDecision Support Matrix and Measurement CriteriaTo support its evaluation of best practices across multiple business performance categories,Frost & Sullivan employs a customized Decision Support Matrix (DSM). The DSM is ananalytical tool that compares companies’ performance relative to each other with anintegration of quantitative and qualitative metrics. The DSM features criteria unique to eachAward category and ranks importance by assigning weights to each criterion. The relativeweighting reflects current market conditions and illustrates the associated importance ofeach criterion according to Frost & Sullivan. Fundamentally, each DSM is distinct for eachmarket and Award category. The DSM allows our research and consulting teams toobjectively analyze each companys performance on each criterion relative to its topcompetitors and assign performance ratings on that basis. The DSM follows a 10-point scalethat allows for nuances in performance evaluation; ratings guidelines are shown in Chart 2. C ha r t 2 : P erf o rm a n c e- Ba s e d Ra t i ng s f o r De c is i on S u pp o r t Ma tr i xThis exercise encompasses all criteria, leading to a weighted average ranking of eachcompany. Researchers can then easily identify the company with the highest ranking. As afinal step, the research team confirms the veracity of the model by ensuring that smallchanges to the ratings for a specific criterion do not lead to a significant change in theoverall relative rankings of the companies. C ha r t 3 : Fr os t & S ul l iva n’s 10-S t e p P r oc es s f or I de n t if y in g Aw a rd R ec ip i en ts© 2012 Frost & Sullivan 4 “We Accelerate Growth”
  • 6. BEST PRACTICES RESEARCHBest Practice Award Analysis for VidtelThe Decision Support Matrix, shown in Chart 4, illustrates the relative importance of eachcriterion for the Entrepreneurial Company of the Year Award and the ratings for eachcompany under evaluation. To remain unbiased while also protecting the interests of theother organizations reviewed, we have chosen to refer to the other key players asCompetitor 1 and Competitor 2. C ha r t 4 : D ec is io n S u p po r t M a t ri x f or En t r ep r en e ur ia l C o m pa ny o f t h e Y ea r A w a r d Measurement of 1–10 (1 = lowest; 10 = highest) Award Criteria Growth Strategy Excellence Products and Technologies Degree of Innovation with Growth Implementation Leadership in Customer Speed of Response to Weighted Rating Market Needs Excellence Value Relative Weight (%) 20% 20% 20% 20% 20% 100% Vidtel 8 8 7 9 8 8.0 Competitor 1 8 8 8 7 8 7.8 Competitor 2 7 8 7 8 7 7.4Criterion 1: Growth Strategy ExcellenceAs a newer entrant, Vidtel is disrupting the video conferencing market via a software,“Multipoint Control Unit (MCU)-less” offering that is more cost-effective and scalable thanexisting offerings in the marketplace. Vidtel is using a four-pronged approach: 1- focus onSMB segment which is ripe for a wider video conferencing adoption, 2- address theinteroperability conundrum by being a cloud provider delivering any-to-any videoconferencing service, 3- develop a channel-friendly model , 4- offer a disruptive pricingmodel that encourages a wider technology uptake.Criterion 2: Growth Implementation ExcellenceSince its inception in 2008, Vidtel has been keen on securing a solid indirect go-to-marketmodel. This effort culminated with the creation of a channel partner program in Novemberof 2011, which enabled Vidtel to establish strong relationships with video equipmentvendors, Voice over Internet Protocol (VoIP) service providers, managed service providers,and video VARs to re-sell Vidtel service. Their partners include over 40 VAR channels suchas IOCOM, Solutionz Conferencing, and CMIT Solutions, among others. The bottom-line© 2012 Frost & Sullivan 5 “We Accelerate Growth”
  • 7. BEST PRACTICES RESEARCHimpact to Vidtel has been very positive with wins such as Drexel University that came viathese channels.Criterion 3: Degree of Innovation with Products and TechnologiesVidtel’s cloud-based video conferencing service delivers B2B connectivity across anystandard video conferencing device (such as Cisco/Tandberg, Polycom, LifeSize, and ZTE,among others) and newer platforms such as Skype and Google Talk. The company has acomprehensive product portfolio that encompasses on-demand multi-party rooms, videodialtone, a Public Switched Telephone Network (PSTN) voice add-on, and a gateway offeringthat adds Skype/Google Talk to an existing MCU. Vidtel has also been able to quicklyestablish a global network footprint, with redundant data centers in North America, Europe,Middle East, and Africa (EMEA), and Asia-Pacific, relying upon a mix of public and privateclouds.Criterion 4: Leadership in Customer ValueAs customers transition towards software-based, cloud-centric solutions, a disruptive pricingmodel becomes an important success component. The Vidtel Meet Me service allowsmultiple parties to dial into an assigned video conferencing bridge on demand for adisruptive price of 15 cents/minute or a monthly fee of $149 for unlimited usage. The VidtelConnect service enables one‐to‐one connectivity on demand for a monthly subscription feesimilar to a mobile phone subscription ($29.95). For an additional $10 per month, the VidtelConnect service becomes the Vidtel Connect Pro, which also adds audio/Private BranchExchange (PBX) capabilities, local calling, and unlimited calls within North America. Thebottom-line result: for zero CAPEX dollars, Vidtel provides an OPEX solution that is morecompetitive than the offerings of any other participant in the marketplace, be it an MCUvendor, a traditional bridging service provider, or a new cloud “MCU-less” provider. Vidtelcan do this as the consummate “lean startup” that it is—with its business model, it does notneed to offer a return to venture capital firms or invest heavily in advertising, focusinginstead on delivering value to its end customers.Criterion 5: Speed of Response to Market NeedsVidtel also elected to tackle the marketplace from a different angle, namely one thataddresses both the advent of the Bring-Your-Own-Device (BYOD) paradigm and theproliferation of video on mobile and other devices. In order to achieve this, in June 2012,the company introduced its Vidtel Gateway product. The Vidtel Gateway is geared towardsenterprises that have an MCU that is still going through its depreciation cycle yet does notsupport external participants on desktop PCs, laptops, smartphones, or tablets. Because oftheir hardware investment, these customers are seeking a solution that can enhance thefunctionality of their existing Customer Premises Equipment (CPE) video equipment. TheVidtel Gateway addresses this need by adding Skype and Google Talk capabilities to theirMCUs. Vidtel was able to quickly launch this new offering in response to requests made by© 2012 Frost & Sullivan 6 “We Accelerate Growth”
  • 8. BEST PRACTICES RESEARCHchannels such as Solutionz Conferencing, Inc. Vidtel has also demonstrated speedyresponse to market needs by providing WebRTC support, winning the Best ConferencingAward at the WebRTC Expo in November 2012.ConclusionThe key elements of Vidtel’s value proposition are price-performance excellence,enterprise-grade service, and channel friendliness. These characteristics will enable easyconnection between video conferencing endpoints anywhere in the world, while leveragingcloud technologies that are more economical and scalable than other existing solutions.By remaining committed to expanding its existing global network and optimizing itsperformance while delivering good service at attractive price points to the mid-market,Vidtel will capitalize on the “sweet spot” for video conferencing market adoption.Therefore we believe that the company is uniquely positioned to be one of the videoconferencing services industry’s new “companies to watch” from an entrepreneurialstandpoint.© 2012 Frost & Sullivan 7 “We Accelerate Growth”
  • 9. BEST PRACTICES RESEARCHThe CEO 360-Degree Perspective T M - Visionary Platform for GrowthStrategiesThe CEO 360-Degree Perspective™ model provides a clear illustration of the complexbusiness universe in which CEOs and their management teams live today. It representsthe foundation of Frost & Sullivans global research organization and provides the basis onwhich companies can gain a visionary and strategic understanding of the market. The CEO360-Degree Perspective™ is also a “must-have” requirement for the identification andanalysis of best-practice performance by industry leaders.The CEO 360-Degree Perspective™ model enables our clients to gain a comprehensive,action-oriented understanding of market evolution and its implications for their companies’growth strategies. As illustrated in Chart 5 below, the following six-step process outlineshow our researchers and consultants embed the CEO 360-Degree Perspective™ into theiranalyses and recommendations. C EO s 36 0-D e gr e e P er s p ec t iv e ™ M o d el© 2012 Frost & Sullivan 8 “We Accelerate Growth”
  • 10. BEST PRACTICES RESEARCHCritical Importance of TEAM ResearchFrost & Sullivan’s TEAM Research methodology represents the analytical rigor of ourresearch process. It offers a 360-degree view of industry challenges, trends, and issues byintegrating all seven of Frost & Sullivans research methodologies. Our experience hasshown over the years that companies too often make important growth decisions based ona narrow understanding of their environment, leading to errors of both omission andcommission. Frost & Sullivan contends that successful growth strategies are founded on athorough understanding of market, technical, economic, financial, customer, bestpractices, and demographic analyses. In that vein, the letters T, E, A and M reflect ourcore technical, economic, applied (financial and best practices) and market analyses. Theintegration of these research disciplines into the TEAM Research methodology provides anevaluation platform for benchmarking industry players and for creating high-potentialgrowth strategies for our clients. C ha r t 6 : B e nc h ma r ki ng P e rf or ma nc e w i t h TE A M R es ea rc hAbout Frost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growthand achieve best-in-class positions in growth, innovation and leadership. The companysGrowth Partnership Service provides the CEO and the CEOs Growth Team with disciplinedresearch and best-practice models to drive the generation, evaluation and implementationof powerful growth strategies. Frost & Sullivan leverages 50 years of experience inpartnering with Global 1000 companies, emerging businesses and the investmentcommunity from more than 40 offices on six continents. To join our Growth Partnership,please visit http://www.frost.com.© 2012 Frost & Sullivan 9 “We Accelerate Growth”

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