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Frost & Sullivan: Australian Unified Communications Market Valued at $484.7 million; Grows by 31% in 2007

  • 26 May, 2008 10:41

<p>SYDNEY, 26 May 2008 – The total Australian market for Unified Communications (UC) grew by 31 percent in 2007 and was estimated to be valued at $484.7 million. At the same time, while Australia is yet to see an end-to-end UC deployment, CIO and IT manager awareness of the technology has now reached 100 percent and Frost &amp; Sullivan predicts compound annual growth for the market of 10.3 percent from 2006 to 2014.</p>
<p>The findings have been released by global growth company, Frost &amp; Sullivan, in its examination of the local UC market, The Australia Unified Communications Report 2008. The study is a comprehensive analysis of the current state of the UC market, its size, opportunities and impediments to growth.</p>
<p>Although the term Unified Communications (UC) has been in existence for some years, the research points to limited progress in achieving true UC by integrating desktop and telephony-based communications applications, a situation not helped by the lack of UC standards. These disparities have added to confusion over the definition of UC, although Frost &amp; Sullivan believes this will decrease as vendors provide more detail about their UC roadmaps in 2008.</p>
<p>At present e-mail and telephony constitute the main areas of spending on UC applications in Australia, accounting for 18.5 percent and 67.2 percent respectively of total market opportunity in 2007. This is expected to change over the next six years due to the strong growth forecast for applications such as Unified Client, Presence, Conferencing and Collaboration and Mobility.</p>
<p>Australia has a number of mobile UC implementations taking place and this integration across mobile devices to desktop application is predicted to increase during 2008. While some challenges exist – such as high mobile and data costs, handset integration issues and network problems – for many industries the business case is strong. However, the cost of attaining the service coupled with the applications that sit on the mobile devices will have to come at a more affordable price.</p>
<p>Enterprise customers will continue to lead the UC market with limited small-to-medium business uptake predicted until carriers are able to package UC applications and services on a hosted delivery model. Currently Cisco and Microsoft command the dominant mindshare among CIOs and IT managers.</p>
<p>While the industry is now conducting intensive UC training, the analysis notes that skills availability will be a potential limitation on the market with vendors, the channel and organisations initially competing for personnel with desktop and telephony integration experience.</p>
<p>Audrey William, Senior Research Manager, Frost &amp; Sullivan, cautions that vendors will need to learn to sell UC to customers in a piecemeal approach rather than trying to convince them to deploy UC in totality.</p>
<p>“Most organisations upgrading to IP telephony are not expected to immediately embark upon UC. Instead, they will wait three-to-five years before considering UC application deployment. The opportunities are clearly there but as with any relatively new technology, market potential is going to depend on the vendors’ ability to market and demonstrate the actual benefits,” William said.</p>
<p>About Frost &amp; Sullivan</p>
<p>Frost &amp; Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's TEAM Research, Growth Consulting and Growth Team Membership empower clients to create a growth focused culture that generates, evaluates and implements effective growth strategies. Frost &amp; Sullivan employs over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 30 offices on six continents. For more information about Frost &amp; Sullivan’s Growth Partnerships, visit http://www.frost.com.</p>

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