1. European SMB Market Becomes the
Next Battleground for the Unified
Communications Vendors
Dorota Oviedo, Industry Analyst
Unified Communications and Collaboration
July 1, 2010

2. Focus Points
Importance of the SMBs to the European Economy
Major SMB Concerns as Opportunities for UC Vendors
UC Channel Expectations for 2010
Key Success Factors in Serving the SMB Sector
Summary of SMB Market Trends
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3. Importance of the SMBs to the European Economy
SMBs as the backbone
of the European economy Unified Communications in the SMB Sector:
- potential source for Number of SMBs (Europe), 2009
jobs and economic
4,500
growth
4,000
Businesses employing
3,500 Number Medium Businesses
less than 250 persons
3,000 Number of Small Businesses
account for 99.8 percent
Number of 2,500
of all enterprises active Businesses
2,000
within the EU (Thousand)
1,500
According to Eurostat:
1,000
67 percent of 500
workforce in the EU is
0
employed in one of
Luxembourg
Turkey
Germany
Denmark
Hungary
Norway
Sweden
France
Spain
Ireland
Portugal
Poland
Iceland
Italy
Belgium
The Netherlands
Switzerland
Finland
The United Kingdom
Austria
Czech Republic
Russia
almost 20 million
active small
businesses
58 percent of the
economy’s value- Country
added is generated by Note: All figures are rounded; the base year is 2009.
this sector Source: Frost & Sullivan
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4. Major SMBs’ Concerns
Unified Communications in the SMB Sector: Major SMBs Concerns (Europe), 2009
Lack of quality management
Implementing new forms of organisation
Constraints and Difficulties
Implementing new technology
Limited access to finance
Problems with infrastructure
Labour force too expensive
Lack of skilled labour
Problems with administrative regulations
Problems with the purchasing power of customers
0 5 10 15 20 25 30 35 40 45 50
Number of SMBs (%)
Note: All figures are rounded; the base year is 2009.
Source: Frost & Sullivan, based on data from European Commission's Eurobarometer
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5. Major SMBs’ Concerns as UC Opportunities
Unified Communications in the SMB Sector: SMBs Concerns Impacting UC Vendors (Europe), 2009
Lack of quality management
Implementing new forms of organisation
Implementing new technology
Limited access to finance
Factors
Problems with infrastructure
Impacting
Labour force too expensive UC Vendors
Lack of skilled labour
Problems with administrative regulations
Problems with the purchasing power of customers
Source: Frost & Sullivan
Implementing UC solutions enables SMBs to optimise the use of currently
available human resources
Convergence of networks and devices leads to substantial cost savings
SMBs require simple to use and manage all-in-one communication solutions
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6. Channel Expectations for 2010 (1/2)
Unified Communications in the SMB Sector:
Comparison of Best Sales Opportunities in the SMB and Large Enterprise Sector (Europe), 2010
VoIP / IP PBX
Fixed-Mobile Convergence
Unified Messaging
Telephony Presence
Contact Center
SMB
Instant Messaging
LE
Audio Conferencing
Web Conferencing
Desktop-based Visual Collaboration
Room-based Visual Collaboration
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Note: Multiple mention question. Base - Channel Partners Serving SMB Sector Only (N=78) and Large Enterprise Sector Only (N=23).
Question reads: Which communication tools present you with the best sales opportunities in 2010? Please select all that apply.
Source: Frost & Sullivan 2010 Unified Communications Channel Survey
Unified Communications Channel Partners’ Perspectives on the Developing Market in Europe
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7. Channel Expectations for 2010 (2/2)
Unified Communications in the SMB Sector: Demand Expectations in the SMB Sector (Europe), 2010
Large Enterprise Channel Partners (N=23) SMB Channel Partners (N=78) Demand Will Significantly
Increase
30.4% 34.6%
Demand Will Somewhat
26.1%
Increase
5.1%
Demand Will Remain
Unchanged
3.8%
Demand Will Somewhat
43.6% 12.8% Decrease
43.5%
Demand Will Significantly
Decrease
Question reads: Thinking about 2010, how would you summarise your expectations with regards to the demand for UC products and services in Europe?
Source: Frost & Sullivan 2010 Unified Communications Channel Survey
Unified Communications Channel Partners’ Perspectives on the Developing Market in Europe
Overall UC channel is very optimistic - predicting demand increase in 2010
The outlook in the SMB sector, although still positive, depicts more cautiousness.
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8. Key Success Factors in Serving SMB Sector
Unified Communications in the SMB Sector: Key Introduction (Europe), 2009
PESTLE Analysis: Success Factors
Strategic Ease of Use
Focus and
Management
FMC / Mobility Simple
Applications to Sell and
Deploy
Key
Success
Factors
Cost Local
Effectiveness / “Trusted
Low TCO / Advisors”
OPEX-based as Channel
Pricing Investment Partners
Protection
Source: Frost & Sullivan
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9. Summary of the UC for the SMB Market Trends
UC vendors strategic focus on SMBs
IP telephony and mobility as major growth drivers
Offering OPEX-based pricing
Network-based services with per user / per month payments
Leasing schemes for CPE
Increase in popularity of hosted and managed services
Vendors partnerships to launch UCC-in-the-box
Channel building
Simplification
Local “trusted advisors”
Growing importance of carriers
New market entrants
Market to grow significantly
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13. For Additional Information
Joanna Lewandowska Daniel Shepherd
Corporate Communications Director
ICT Europe ICT Europe, Israel & Africa
+48 22 390 41 46 +48 (0) 22 244 08 64
joanna.lewandowska@frost.com daniel.shepherd@frost.com
Dominic Dodd
Principal Analyst
Unified Communications &
Collaborations
+44 796 854 1357
dominic.dodd@frost.com
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