Growth in the Australia UC services market in 2011 was driven by strong demand for end-to-end managed services, primarily in the area of videoconferencing endpoints and hosted solutions, according to research firm, Frost & Sullivan.
In its latest research release, Australian Unified Communications Services Report 2011, it was reported that demand in the medium to long term, is forecast to slow slightly but remain concrete, with a compound annual growth rate of 13.8 per cent between 2011 and 2018.
It highlighted the growing significance of hosted and Cloud-based solutions and the gradual shift away from on-premise solutions to include [by 2018]:
- The expected shift towards hosted and Cloud-based models will continue to drive revenues and adoption of services in the Hosted UC services segment, resulting in a predicted revenue contribution of 50 per cent.
- Managed services accounted for 15.5 per cent of UC services revenues in 2011and is expected to rise to 18 per cent.
- Consulting is expected to represent 10 per cent of revenues with growth driven by the convergence of communication mediums such as social media and UC and a growing need to integrate disparate customer information from enterprise applications such as CRM and ERP.
- Installation and integration services will drop to 15 per cent of all UC services revenues.
- The contribution of maintenance services revenues is likely to reach seven per cent.
Frost & Sullivan ICT research director, Audrey William, said the growing importance of hosted and management services will lead to channels, service providers and systems integrators having to re-invent themselves to offer value add services – meaning they have to change the existing model of selling services.
“Margins are thinning in the areas of maintenance and integration services. Cloud-based solutions will also pose a threat to existing services offered by channels and hence for players to survive in this game, the need to offer services beyond basic services will be critical,” she said.
Other predictions in the report include: the dominance of the on-premise model for the next three to five years; more organisations employing a phased approach in their shift to a fully hosted or Cloud-based model; hosted voice and conferencing solutions driving growth in the hosted services segment; adoption of videoconferencing solutions creating demand for specialist audio-video integrators; and corporate acceptance of a “bring-your-own-device” policy.