Expected drop insignificant for rampaging UC market

A decline of 4.1 per cent will not hurt the Unified Communications (UC) solutions market according to a Frost & Sullivan analyst.

With the market forecasted to reach $1 billion in value by 2012, the expected drop in 2009 is an insignificant blip caused by the economic conditions, Frost & Sullivan Australia and New Zealand director, Audrey William, said.

“The drop is being driven by an increased sales cycle, and is not an indication that the market has lost interest,” she said.

Positive interest in the market was being driven by fast return on investment, she said. Conferencing and collaboration, software-as-a-service, and IP-based technology had the best traction.

“Mobile UC is becoming stronger with demand for richer applications,” William said.

The UC space is performing well within the overall IT industry. Cisco, Microsoft and Avaya are the chief vendors in the space.

Government, financial institutions and professional services were the most significant verticals, William said.

According to Frost & Sullivan, email and telephony applications represented 70.8 per cent of UC revenues in 2008. Going forward, IP telephony will experience good growth, accounting for 34.3 per cent of revenues in 2015, while traditional telephony will decline and account for 5.3 per cent of revenues.

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