Unified Communications: Trend Analysis to 2012 (Strategic Focus)

Table of Contents

• Overview
  • Catalyst
  • Summary
• Key Messages
  • The market for UC solutions is set to grow considerably
  • The cost of implementation is the biggest inhibitor ofinvestments in UC
  • Instant messaging and enterprise mobility are judged thelargest security threats
  • Unified communications has not made a significant impacton flexible working
  • Partnerships and mergers are defining the competitivelandscape for UC solutions
  • The majority of enterprises prefer to purchase through areseller and deploy on-site
• Table of Contents
• Table of figures
• Table of tables
• Market Opportunity
  • Unified communications can improve productivity and reducehuman latency
    • Defining unified communications
  • The market for UC solutions is set to grow considerably
  • The penetration of UC solutions is increasing steadily
    • Similar numbers of greenfield investments are being madein all four UC technology areas
    • Messaging has the highest current penetration
  • Rates of investment and penetration vary by geography,industry and company size
    • North America and Western Europe will show the largestgrowth in absolute terms
    • Voice/data network convergence was not enterprises' largest area of expenditure in 2007
    • Penetration of voice/data convergence is highest in thefinancial industries, particularly retail banking
    • Healthcare is planning the most greenfield investments inUC technology
    • There are differing levels of penetration and growth ratesbetween large and small enterprises
• Technology Evolution
  • Unified communications is emerging from voice/dataconvergence
  • The migration of telephony from TDM to IP is relativelyslow
  • Key technologies and applications which comprise the UCsolution are evolving
  • Contact centers are monitoring developments in unifiedcommunications
  • Unified communications has not made a significant impacton flexible working
  • Most UC technologies will be adopted in the medium term
• Customer Impact
  • There are four types of workers that can benefit from UC
  • Customer experience is driving investments in convergencesolutions
    • Standardizing systems and infrastructure is also aconsideration for enterprises
    • The increase in flexible working could be a driver ofdemand for UC
      • Vendors need to prove return on investment of flexibleworking
  • The cost of implementation is the biggest inhibitor ofinvestments in UC
    • Legacy hardware is both a driver and an inhibitor forgrowth in the UC market
  • Instant messaging and enterprise mobility are judged thelargest security threats
  • Vendors have to prove return on investment
• Competitive Landscape
  • Partnerships and mergers are shaping the vendor market forUC solutions
  • Microsoft and IBM have burst into the unifiedcommunications market
    • IBM
    • Microsoft
  • Cisco, Siemens Enterprise, Avaya, and Nortel are UC marketleaders
  • Cisco has the greatest mindshare of the leading vendorsbut there are regional variations
    • Cisco has the largest degree of mindshare but five othervendors have an established presence
    • Regional mindshare reflects vendors' market strengths
    • Microsoft Office Communicator leads IM mindshare
• Go to Market
  • Vendors should utilize partners and resellers to addressenterprise requirements
    • The majority of enterprises prefer to purchase through areseller and deploy on-site
  • Vendors should target the CEO and CIO when marketing theirsolutions
    • Both the CEO and CIO are likely to have some degree ofinfluence over investments decisions
  • Go to market recommendations
    • UC adoption is increasing but will remain a low priorityfor many enterprises
    • Vendors should market UC as improving productivity andreducing human latency
    • Financial institutions are more receptive to newtechnologies
    • There will be a slow migration from TDM PBXs to IP PBXs
    • Partnerships are key in vendors' route to market
• APPENDIX
  • Definitions
  • Methodology
  • Further reading
  • Ask the analyst
  • Datamonitor consulting
  • Disclaimer
• List of Tables
  • Table 1: UC global enterprise expenditure ($ millions)
  • Table 2: Do you have the following UC solutions? Whichwould you invest in next 6-24 months?
  • Table 3: Enterprise expenditure on UC solutions byregion ($ millions)
  • Table 4: Which area of investment was your singlebiggest IT project this budget year?
  • Table 5: Do you use voice/data convergence? Would youinvest in next 6/24 months (vertical)?
  • Table 6: Do you use voice/data convergence? Would youinvest in next 6/24 months (size)?
  • Table 7: Does your organization use IP telephony andwhen was it implemented?
  • Table 8: Which technologies do you support for flexibleworking? Like to offer in 24 months?
  • Table 9: Please rate the importance of the followingobjectives to your UC investment
  • Table 10: What issues prevent your organization frominvesting in UC technologies?
  • Table 11: How do you assess the security risk posed bythese technologies?
  • Table 12: Vendor summary scores for Voice/DataConvergence Decision Matrix
  • Table 13: Please pick two firms which you believe to be' leaders' in UC
  • Table 14: Which vendor do you consider a leader in theinstant messaging market?
  • Table 15: What is your preferred approach to buying UCtechnologies?
  • Table 16: Rank the most influential person forpurchasing decisions on voice/data convergence
• List of Figures
  • Figure 1: Revenues will increase rapidly in the unifiedcommunications market
  • Figure 2: Similar levels of greenfield investmentsacross technologies
  • Figure 3: North America and Western Europe will show thelargest growth
  • Figure 4: UC is unlikely to be enterprises' largestproject
  • Figure 5: Healthcare is set to make the most greenfieldinvestment in UC
  • Figure 6: Small enterprises will be making the mostgreenfield investments
  • Figure 7: Voice/data convergence has allowed unifiedcommunications to emerge
  • Figure 8: Enterprises are installing IP telephony instages
  • Figure 9: Telephone and email are key technologiessupported for flexible working
  • Figure 10: Raising productivity and increasing customersatisfaction are key aims of enterprises
  • Figure 11: Cost is the largest inhibitor of UC
  • Figure 12: Instant messaging is considered the largestsecurity risk
  • Figure 13: Cisco is the leading vendor with the highesttotal score
  • Figure 14: Cisco is a market leader in terms ofmindshare in a competitive field
  • Figure 15: Microsoft has a commanding mindshare in theenterprise IM market
  • Figure 16: Enterprises prefer to purchase from resellers
  • Figure 17: CEOs and CIOs are the key decision makers forvoice/data convergence