Video Conferencing Telepresence Market Forecast
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Transcript of Video Conferencing Telepresence Market Forecast
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Filing Information: March 2010, IDC #221356, Volume: 1
Enterprise Communications Infrastructure: Market Analysis
M A R K E T A N A L Y S I S
W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d T e l e p r e s e n c e2 0 1 0 2 0 1 4 F o r e c a s t
Jonathan Edwards
I D C O P I N I O N
Enterprise videoconferencing has been through a number of hype cycles over the
past few decades and has failed to become culturally integrated into the fabric of
business processes and communications. However, IDC believes that only recently
have the technologies delivered to end users' experiences worthy of initiating a
videoconference over a phone call or conducting business across locations that in the
past required travel. IDC believes the following three factors will shape the enterprise
videoconferencing market over the next five years:
Technology capability and market awareness. The ways in which we interact
with video (be it YouTube content accessed on our iPhones or a Skype video call
with a grandparent) are more abundant and advanced than ever. This trend is
only accelerating as partnerships like Skype and HDTV manufacturer Panasonic
form. From an enterprise standpoint, quality, productivity, and level of
engagement per interaction over video are primary keys to usage and adoption,
and only within the past three years has the technology become capable
(epitomized by high-end telepresence systems) to deliver here. Furthermore,
market awareness has never been greater as vendors like TANDBERG,
Polycom, LifeSize, and Cisco have successfully catalyzed awareness and
demonstrated the value of videoconferencing to their growing customer bases
and to their strategic and channel partners.
Bandwidth availability. The most significant impediment to videoconferencing
adoption is bandwidth. Interviews with a major IT systems integrator/consultancy
indicated that on average every $1 spent on videoconferencing requires roughly
$3 on network upgrades. In comparison with IP telephony, which requires on
average $0.80 for network upgrade on every $1 spent, the overall costs of
investing in videoconferencing are high. Cisco alone has upgraded its network
four times in roughly three years since rolling out companywide access to
telepresence and other video endpoints.
Interoperability. While vendors like Polycom and TANDBERG have
demonstrated videoconferencing and telepresence interoperability from an
equipment standpoint for some time, interoperability between all forms of
conferencing systems (Web conferencing, audioconferencing, etc.) will greatly
impact the way enterprises evaluate the ROI of the application. There aremultiple levels of interoperability that will take time to address, but all will
significantly impact adoption and help accelerate the tenets of Metcalfe's law.
These levels include system type to system type (e.g., Web based to
telepresence), legacy to next generation, vendor to vendor, carrier network to
carrier network, and business to business (B2B).
GlobalHead
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#221356 2010 IDC
T A B L E O F C O N T E N T S
P
In This Study 1
Methodology............................................................................................................................................. 1
Situation Overview 1
Industry Consolidation .............................................................................................................................. 2
Adoption Trends .......................................................................................................................................2
Future Outlook 3
Forecast and Assumptions .......................................................................................................................4
Market Context .........................................................................................................................................25
Essential Guidance 25
Learn More 25
Related Research.....................................................................................................................................25
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L I S T O F T A B L E S
P
1 Key Forecast Assumptions for the Worldwide Enterprise Videoconferencing andTelepresence Market, 20102014................................................................................................ 5
2 Worldwide Enterprise Videoconferencing Revenue and Endpoints, 20092014.......................... 23
3 Worldwide Enterprise Telepresence-Only Revenue, Number of TelepresenceRooms/Systems, Room/System Install Base, and Number of Screens, 20092014................... . 24
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#221356 2010 IDC
L I S T O F F I G U R E S
P
1 Worldwide Enterprise Videoconferencing Revenue, 20092014 .................................................232 Worldwide Enterprise Telepresence-Only Revenue, 20092014................................................. 24
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2010 IDC #221356 1
I N T H I S S T U D Y
M e t h o d o l o g y
The quantitative and qualitative information contained in this study results from IDC'songoing videoconferencing research. Both primary and secondary sources of
information were used in the development of this study. Primary sources include
interviews with videoconferencing vendors and IDC survey data. Secondary sources
include vendors' publicly registered financial statements, news releases, vendor-
provided marketing material, and consultation with other IDC offices.
All revenue figures are IDC estimates that refer only to videoconferencing equipment
and exclude services (installation, professional, and managed). Considered
videoconferencing equipment includes multipoint control units (MCUs), video codecs,
gateways, cameras, screens, and associated audio components. These figures do
not include PC/Web-based systems, Webcams, or videophones. The telepresence
revenue, room/systems, and screens figures refer only to the highly immersivevideoconferencing systems that deliver near-in-person experiences via HD video,
wideband audio, echo cancellation, zero latency, and spatial relativity. These systems
do not need to be installed as preconfigured room-based units but instead are tracked
and forecast based on the experience the infrastructure delivers not the setting or the
application. IDC expects the number of applications telepresence technology is
brought to in the later years of this forecast will be the primary revenue drivers.
These estimates were modeled based on primary and secondary research. Sources
include but are not limited to vendor statements, vendor financials, briefings, press
releases, interviews, conferences, and internal forecast models. Shipment information
may have been provided by the vendor, when available.
Note: All numbers in this document may not be exact due to rounding.
S I T U A T I O N O V E R V I E W
IDC predicted that 2009 would be the year of the great enterprise video experiment,
and given the macroeconomic challenges that enterprises faced this year, the market
was able to maintain 16.7% year-over-year growth. IDC considers this prediction to
be validated by the success of Cisco (which claims 100% year-over-year growth in
telepresence revenue), Polycom, and TANDBERG among others in 2009 as well as
the increasing levels of interest in videoconferencing among enterprises validated by
end-user interviews, surveys, and conversations with IT communications
implementation consultants. In 2009, videoconferencing received a great amount of
traction in the media and in marketing materials as a means to cut travel costs and
scale human capital. Cisco has also pushed its telepresence line into the mainstream
media, with equipment appearances on NBC's 30 Rock as well as in television
commercials starring actress Ellen Page.
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I n d u s t r y C o n s o l i d a t i o n
2009 brought about vendor consolidation, most notably Cisco's October acquisition of
TANDBERG (finalized in December). This acquisition not only solidified Cisco's
commitment to enterprise video beyond telepresence (particularly but not limited to
conferencing) but also is indicative of where the market needs to go, namely theblurring of lines between low- and high-end videoconferencing system silos and the
interoperability and interconnectivity between them. Couple TANDBERG with Cisco's
WebEx assets, and the networking giant is now capable of offering end-to-end
video/Web conferencing solutions.
Another example is PC peripheral provider Logitech (a company with a market cap of
nearly $3 billion) acquiring videoconferencing provider LifeSize on December 11,
2009, for $405 million. LifeSize was founded in 2003, currently serves over 9,000
customers in 80 countries, and is known for its affordable telepresence offerings.
Logitech on the other hand has been a market leader in Webcams for years and in
June 2009 announced its Web-based video call service Vid. While Vid is primarily
targeted at consumers and as a complement to Logitech's Webcam business, Skype,Google, and ooVoo's Web-based videoconferencing services are used frequently for
business use. Note: While Web-based videoconferencing services are not included in
this IDC forecast, these services are aiding the adoption and visibi l i ty of
videoconferencing overall and are therefore noteworthy. In contrast with Cisco, which
acquired TANDBERG to move downstream from telepresence, Logitech will
conversely attempt to move upward from PC-based video calling/conferencing.
Polycom now remains the last major independent market player with a significant
videoconferencing install base and an extensive product portfolio. IDC does not
expect Polycom to be acquired in the near future as it can play the Cisco-alternative
card now that TANDBERG is a Cisco asset and has formed a number of strategic
partnerships to support its efforts against Cisco (partnerships include those with IBM,Siemens, Juniper, and BroadSoft). Moreover, some of Cisco's primary competitors in
IT/networking (HP) and IP communications (Avaya) have been busy themselves (in
2009, HP acquired 3Com and Avaya acquired Nortel). HP appears to be the most
likely suitor though, given the level of disruption in enterprise networking, the
convergence of enterprise communications and collaboration applications, and the
lucrative opportunities in enterprise video at stake; companies such as Dell and IBM
have likely entertained the thought.
A d o p t i o n T r e n d s
Given the trending of an increasingly distributed workforce within a globally
interdependent economy, the business case for videoconferencing has never been
clearer. The need to reduce travel costs has been a primary driver of adoption in
2009, validating November 2008 (posteconomic crash) survey data from IDC's
eVideo QuickPoll, which indicated that the number 1 reason for adopting
videoconferencing was cost savings/avoidance followed by improving team
collaboration, improving customer service, and improving employee work/life balance
(sequentially). Because of the bandwidth requirements for videoconferencing, larger
companies with higher network capacities have been the heaviest adopters of the
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2010 IDC #221356 3
application, especially the high-end telepresence systems. Larger companies tend to
have a greater number of global locations as well, which makes videoconferencing a
valuable way to connect distributed employees. Financial services, government, and
healthcare have been the most prominent adopting verticals, though the education
sector is showing dramatic increases in interest early in 2010.
Beyond cutting travel costs, the soft ROI of scaling human capital across multiple
locations in a highly engaging manner is cited as a primary benefit of
videoconferencing. 23% of respondents to a recent IDC survey indicated that the top
reason they find videoconferencing valuable is it increases the effectiveness of
meetings.
Though IDC has seen double-digit growth in videoconferencing revenue over the past
three years, significant adoption barriers remain. Bandwidth remains a primary barrier
to mass-market adoption, though Polycom for example recently announced its
support for H.264 "High Profile" to deliver HD video starting at just 512Kbps. IDC
expects coding and compression technology efficiencies to improve significantly
within the forecast period.
Beyond bandwidth, cultural adoption has proven to be one of the most difficult
obstacles. Unlike Web and audioconferencing, videoconferencing has traditionally
been supported by A/V staffs within enterprises and has not integrated with
calendaring and scheduling systems for example, making it difficult for end users to
reserve or even consider these resources in many cases. Multiple systems
integrators and videoconferencing vendors have indicated to IDC that the ability to
schedule a videoconference within Microsoft Outlook/Lotus Notes and/or reserve
equipment within these applications is one of the initial applications if not the initial
application integration customers are requesting.
Another cultural barrier is getting employees to consider leveraging
videoconferencing resources instead of traveling if and when possible. This aspect of
cultural adoption takes time but will accelerate as the number of videoconferencing
systems grows (including public sites). This issue should be handled at the C-level,
and providing incentives is highly recommended. Other barriers include the inability to
videoconference B2B currently in the ways businesses can via audio bridges and
dedicated conference lines.
F U T U R E O U T L O O K
The future is bright for videoconferencing vendors, but a number of recently
established business models and go-to-market strategies that have yet to be proven
may or may not accelerate the pace of adoption.
For example, Tata Communications launched its telepresence managed service and
public room offering in 2008. Tata Communications' goal is to remove the high capex
of telepresence by offering onsite but Tata Communicationsmanaged equipment
and telepresence services as well as public/shared telepresence facilities at hotels
and other locations. Tata will also host a telepresence directory listing businesses
capable of meeting over telepresence (on- or offsite). While Tata Communications'
telepresence business is in its infancy with just 10 public rooms to date and only a
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4 #221356 2010 IDC
handful of managed service clients, the prospect of lowering cost barriers to adoption,
establishing a global network of connected telepresence systems, and of fering
telepresence as a managed service with no equipment purchases required is
promising. Even more encouraging is Tata Communications' telepresence advisory
services it couples with its managed services. Tata Communications, with its partners
CWT and AmEx, has demonstrated the ability to help customers drive user adoption
and create bottom-line cost savings by layering travel schedules, most commonly
collaborating/conferencing city pairings and other data to come up with the most
strategic ways in which telepresence can be leveraged within a business.
Cisco has also established a hosted telepresence directory that according to Tata
Communications will be cross-listed with the telepresence directory Tata
Communications itself hosts. Cisco also has established a SIP-like standard it is
calling TIP for enabling telepresence-to-telepresence interoperability at the necessary
QoS levels. Cisco demonst rated WebEx/telepresence interoperability at its
Collaboration Summit as well, and the extent to which these two solutions can
accelerate the adoption of one another remains unknown. Integration between audio,
Web, and videoconferencing as well as with application sharing and whiteboarding
functionality is already happening, but it will take three to five years before these are
fully integrated turnkey solutions.
Another area of this market that has yet to be proven is the extent to which
videoconferencing equipment will be leveraged for applications like digital signage,
rich media content streaming, and application sharing. Yet another is how integral
video will become from a content and knowledge sharing perspective in the way
YouTube has on the public Web. Depending on the size and speed of demand for
video applications beyond conferencing, the ways in which videoconferencing
equipment is deployed and leveraged change the way enterprises will evaluate the
ROI of these offerings. IDC does expect the number of applications
video/telepresence is brought to over the next five years to dramatically increase
beyond the conference room setting. In the outer years of this forecast, IDC
anticipates HD video and telepresence technology to be present in, for example, retail
banks, fast-food drive-thrus, and concierge services of all kinds.
At CES 2010, both Polycom (with partner IBM) and Cisco demonstrated home
telepresence solutions. Cisco will enter U.S. home telepresence field trials this spring,
with Verizon as an early partner, and field trials in France will start later in 2010, with
France Telecom as Cisco's early partner. If home-videoconferencing/telepresence
systems become prevalently accessible (e.g., Skype on Panasonic televisions or
Cisco/Polycomtype offerings) , the ways in which consumers can interact with
businesses, family, and friends from the home changes as well.
F o r e c a s t a n d A s s u m p t i o n s
Table 1 provides the key forecast assumptions for the worldwide enterprise
videoconferencing and telepresence market.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Macroeconomics
Economy Worldwide economic growth
will be negative by 23% in
2009, although forecasting
groups expect 2010 to be
markedly better. Through the
year, forecasts for 2010 have
held up, partly because 2009
has drifted down. IDC will
continue to take a milddownside view of GDP
forecasts from Consensus
Economics. Assumptions for
2010: United States 2.0%,
Western Europe 0.2%, and
Japan 1%. This means that
worldwide, the global economy
will drop 2.5% in 2009 and
grow 2.0% in 2010.
High. A down economy affects
business and consumer
confidence, availability of credit
and private investment, and
internal funding. A rising
economy does the opposite.
Fiscal stimulus
packages
The economic stimulus plans
enacted globally seem to have
stemmed the panic and
economic freefall of 4Q08 and1Q09, but they will have little
impact on market demand or
employment until well into
2010. More of the effects will be
seen in 2010. Our assumption
at this point is that these plans
will bulwark the economy
against getting worse than we
expect, so we are not changing
our basic assumption about
GDP growth.
High. The stimulus packages
follow in the footsteps of the
banking system bailouts by
stemming economic panic.They will not immediately jump-
start the global economy after
such a shock.
Policy IDC expects to see new
regulation for financial marketsput in place in 2010.
High. New regulations could
drive new demand for ITspending; a downside
possibility is that this spending
crowds out other IT spending,
but that wasn't the case in the
post-Sarbanes-Oxley years.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Profits Consensus Economics'
estimates of U.S. profit growth
have trended up for 2010
(11.9%) since September 2009.
High. Compliance spending
seems to be funding itself
through better-run business
operations and, in fact, is
spurring other IT initiatives.
U.S. fiscal policy,
deficits, and trade
imbalance
These areas affect the long-
term economic outlook for the
world; however, their short-term
impact is muted. IDC assumes
these areas will not affect short-term ICT forecasts.
High. A crash of the dollar or
the use of economic power to
drive U.S. political decisions
could affect the world economy.
Inflation Inflation driven by higher oil and
commodity prices has been
taken off the table. At the same
time, worries about deflation
have abated.
High. Low inflation keeps
interest rates low and leads to
more capital spending,
including spending on ICT.
Exchange rates The financial crisis has caused
gyrations in dollar exchange
rates, which went up in the first
half of 2009 and are now
coming back down. For the
purposes of IT forecasts, IDCassumes no major impact on
overall demand. There will be a
difference in demand growth,
however, and "as reported"
vendor revenue.
High. A stable, or even steadily
falling, dollar makes it easier for
vendors to manage supply lines
and stabilizes the prices of
imports and exports.
Wild cards We are assuming that there will
be wild-card events, but we are
predicting no single one. As
one scientist has put it, there is
a high probability of a low-
probability event taking place.
Moderate. Uncertainty and
political malaise could lead to a
fall in business and consumer
confidence, which could affect
ICT spending.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Global
megatrends
Cloud services Cloud services is IDC's name
for what we believe will become
a new paradigm of computing
over the next several decades
the logical evolution of what
we have called "dynamic IT" for
years. It entails shared access
to virtualized resources overthe Internet. A detailed
definition of and research about
cloud services can be found at
idc.com. IDC predicts that cloud
services (public cloud) will
increase 35% in 2010 to nearly
$25 billion, or about 1.6% of IT
spending. That percentage
should increase to 2.6% by
2013.
High. The key advantage to
cloud services should be the
ability of IT organizations to
shift IT resources from
maintenance to new initiatives.
This, in turn, could lead to new
business revenue and
competitiveness.
Convergence Convergence is a complex
phenomenon working at many
levels convergence of thetelephone network and the
Internet; communications and
IT technologies; consumer and
enterprise technologies; and
even storage, routing, and
processing in the datacenter.
Of these, perhaps the most
overarching is the convergence
of voice, video, and data
communications. IDC assumes
that this convergence is a
permanent phenomenon and
that it will pick up pace as the
decade wears on. Onemeasure is that IDC expects
1.9 billion users on the Internet
and 3 billion users of the phone
network by 2012. The overlap
will be significant.
High. Convergence will drive
new competitive dynamics,
offer new applications andfunctions to customers, and
strain the legal and regulatory
systems. It will also drive
increased ICT spending.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Software industry
transformation
The software industry is going
through a major transformation,
from basic architecture
(service-oriented architecture
[SOA]) and the way software is
written (composite applications)
to the way software is delivered
(software as a service) and
even funded (advertising
based). IDC assumes that this
transformation will take adecade but that it will, when
done, allow for much faster and
more dynamic delivery of
software functionality.
High. The new software
creation and delivery models
should allow for a quantum
increase in the ability to deliver
and integrate new software
functionality to ICT systems.
This should increase overall
spending even as it lowers
costs.
Service industry
transformation
This is a long, slow process
involving the rise of offshore IT
services, the increased
integration of IT services inside
business services, and the
advent of new service delivery
models. Most firms have
developed a multishoring
capability and blended pricingmodel and are now working on
ways to standardize on
technologies and
methodologies, deliver services
online or in new form factors,
invest in datacenters, and
expand into business services.
Despite the race to automate
service creation and delivery,
there is a looming talent
shortage. The economic crisis
will be good for outsourcing
markets but bad for project-
based services.
High. These trends portend
new competitive dynamics in
the industry software and
online services competing with
traditional IT services as well
as new thresholds for delivery.
Online delivery models and
operational standardization,
from new technologies toremote infrastructure services,
will allow faster and more
efficient translation of service
labor to client deliverable.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
The changing IT
domain
The IT domain that was once
the care and feeding of
mainframes has evolved over
the years to include the
management of enterprise
applications, deployment of
software and applications to the
workforce, and desktop
automation. Now it is evolving
again to take on responsibility
for the phones, buildingautomation, sensors, and RFID,
and sometimes even physical
security as proprietary systems
migrate to TCP/IP networks.
Other new applications, such
as Web 2.0 and real-time
business analytics, are driving
IT-based applications to the
point of customer or employee
contact and becoming mission
critical along the way. This
could increase the need for IT
to be so close to the business
units that it becomes part ofthem rather than merely a
service organization.
High. This migration will
generate new staffing and skill
set demands on IT
organizations, which will create
challenges but create more
ultimate demand for ICT.
Green IT This term refers to a basket of
technologies and practices
designed to minimize power
costs, carbon output, or
hazardous waste. IDC's
coverage of green IT can be
found in numerous documents.
The major impact of green IT
will be on technology choices
based on low power, more
attention to asset disposal, andsome change in vendor
selection. Depending on the
country, voluntary adherence to
green IT principles could
become law. The search for
sustainability in areas outside
IT will lead to opportunity for IT
vendors.
High. The adoption of green IT
products and practices should
increase demand for new IT
products and services.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Technology/
service
developments
10GbE adoption 10GbE is becoming a staple in
the high-end datacenters
even into the aggregation layer
in networks with server clusters
and very high-end users.
Products will continue to
mature with declining ASPsowing to new product
introductions by existing
vendors with greater port
densities as well as new
vendors entering the market.
10GbE will also benefit as a
low-cost alternative to SONET
transport in the WAN.
High. 10GbE enables the
aggregation of numerous
gigabit ports in high-end
environments. In the near term,
the most significant revenue
impact of 10GbE will be to drive
sales of gigabit ports in serverclusters as well as those being
used by carriers for the Internet
core backbone. 10GbE will
continue to play a significant
role in the datacenter
movement toward consolidated
and dense datacenters, while
storage, grid, and WAN
applications will begin to add
significant growth in the later
years of the forecast period.
Gigabit Ethernet
(1,000Mb)
Gigabit Ethernet is primarily a
server connectivity technologytoday. The bulk of development
efforts in the switch, OEM, and
semiconductor vendor
communities are focused on
10GbE and Gigabit Ethernet.
Most importantly for Gigabit
Ethernet, new traffic types such
as video and software as a
service are beginning to drive
utilization rates up and, as a
result, enabling Gigabit to truly
challenge Fast Ethernet in the
wiring closet.
Moderate. Gigabit ports will
represent 60% of spending onEthernet switches. While most
customers are not significantly
bandwidth constrained in the
wiring closet, the security,
wireless, and traffic control
features found in newer (most
often Gigabit) switches are very
attractive. Video is the most
likely candidate to pressure
network capacity to the
desktop. Additionally, server
virtualization and dense
computing is clearly driving
Fast Ethernet out of thedatacenter in favor of Gigabit
connections.
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2010 IDC #221356 11
T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Impact of WLAN on
edge
WLAN access devices are
deployed at a ratio of 1:10 or
more users. In facilities where
WLAN becomes the primary
method of network access,
demand for edge switch ports
will wane late in the forecast
period. This downward
pressure on ports is somewhat
offset by a rise in the
importance and demand foradvanced capabilities in the
remaining ports.
Moderate. Enterprise adoption
of WLAN is growing. Most
importantly, WLAN as the
primary network access
technology is taking hold in
education and healthcare. As
the number of enterprise and
small business clients
provisioned only on a WLAN
begins to accelerate, demand
for switch ports at the edge ofthe network will decrease
slightly despite some
buttressing from wired devices
that require more bandwidth or
more reliable connections than
a wireless network can provide
(IP phones, IP video
surveillance, graphics and
engineering workstations, and
RFID readers).
Impact of WLAN on
LAN switching
Enterprise adoption of WLAN
will grow over the next five
years. Increasing coverage andadditional applications on the
WLAN will increase enterprise
reliance on the network as a
whole and drive new
investments in network
intelligence in both the core and
edge of the network.
Low. Enterprise WLAN
deployments are still largely
overlay networks that are notheavily integrated with the
wired network. Despite the
current state, WLAN is now a
mature enough technology to
influence the deployment
strategies of wiring closet
switches. WLAN-induced traffic
changes in the form of mobility,
identity management, and RF
management demands will
continue to drive network
intelligence investments at the
edge and traffic into the core.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
IP voice Deployment of IP voice on
enterprise networks will drive
significant sales of new and
upgraded network equipment.
High. Most customers still plan
on upgrading the network
before a full IP voice rollout.
However, we believe network
spending directly tied to voice
deployments will decrease as
tools to assess voice readiness
proliferate and voice
preparation becomes part of
normal network planning.
IP video Video is finally here.
Nonbusiness consumption of
Internet video from sites such
as YouTube.com and IP video
surveillance are clearly leading
the charge in the near term.
IDC believes that in the
20092014 time frame, video
on the enterprise network will
become a significant form of
enterprise communications
including training, telepresence,
and conferencing, as well as
internal and external corporatecommunications. All of these
video types are growing quickly
and placing a more significant
burden on the network.
Moderate. These applications
are all in early stage formal use
in many companies, but the
move to IP voice could hasten
the ability to deploy increasing
levels of video on the network.
However, continued network
upgrade and management
costs as well as WAN
bandwidth and storage costs
remain a concern for this
market. If travel delays from
security threats spike beyond
the current trends of continuedintensity, the demand for video
will rise faster than that
presented in IDC's current
forecast.
Unified
communications
UC is a common infrastructure
to deliver, manage, and support
a wide range of
communications applications,
including IP telephony calling
and management; Web,
audio-, and videoconferencing;
voice, email, and text
messaging; presence/IM; click-to-dial and event-driven
communications.
Moderate. VoIP applications
are increasingly becoming the
predominant driver for IP
telephony adoption. Businesses
are looking to increase
productivity and collaboration
and believe that such
applications are the solution.
Companies will not only adoptmore communication-rich
applications but also seek to
integrate other primary
business-critical operation
solutions with this new
communication infrastructure.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Voice, video, and
data application
integration
VoIP applications are
increasingly becoming the
predominant driver for IP
telephony adoption. Businesses
are looking to increase
productivity and collaboration
and believe that such
applications are the solution.
Companies will not only adopt
more communication-rich
applications but also seek tointegrate other primary
business-critical operation
solutions with this new
communication infrastructure.
Vendors will begin to acquire
voice-centric solution vendors.
High. If applications vendors
and systems integrators can
build the necessary APIs for
integration efforts, they will
grant themselves access to a
large installed base of users
and businesses that have
already deployed common
business applications.
Mobile PBX
extensions
Many enterprises also lack
corporate control over mobile
devices that are being used in
the corporate environment.
First, there is rarely a standard
corporate account and/or
centralized billing for corporatemobile phone usage. Second,
the independence of
employees and their mobile
phones does not allow for true
separation of personal and
professional phone usage. This
makes enterprises particularly
vulnerable in the case of the
loss of an employee through
termination or move to another
job. The mobile device is rarely
recaptured, and the phone
number assets are often lost to
the enterprise.
Moderate. IDC suggests that if
enterprises are looking to
provide greater mobility to their
employees while leveraging the
robust functionality of their IP
PBXs, they should look toward
those off-the-shelf mobile PBXsolutions that allow for single-
number dialing that can help
them begin to regain control of
their enterprise mobility costs.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
VoIP application
development
platforms
As the number of voice
applications on the network
grows, the focus on voice in the
IT realm will be to segregate
into two areas of responsibility.
The first area is to maintain a
high level of reliability for dial
tone and quality of service. The
second area will be to develop,
grow, and manage the IP voice
system as a platform forapplication development. Major
network vendors will either
partner or acquire VoIP
development platform solutions
that allow customers to quickly
build and deploy applications
over their converged networks.
(Examples are Avaya's
Communications Enabled
Business Processes [CEBP]
platform and Cisco's Unified
Application Environment
[UAE].)
High. Start-ups like LiteScape,
IPcelerate, and Cistera
Networks are helping VoIP
customers build applications
over their converged networks
to maximize their customers'
return on IP telephony
investment. These
communications mashups and
integration with existing
business applications effortsare fairly small applications that
drive significant hard-dollar
ROI. Given the skill sets
needed across industry-specific
business issues,
communications technologies,
and IT expertise, vendors,
consultants, and those with the
ability to bring these capabilities
to market will be highly
disruptive.
Server
architectures
Enterprise customers are
building mission-critical
architectures on commodity
servers, virtual servers, and
blade servers. In addition,
blade servers and server
virtualization will drive the
importance of server
connections up as the growth in
physical servers slows, while
growth in virtual servers
increases.
Moderate. LAN switch
infrastructures that support
server farms and clusters
require higher bandwidth and
individual support for each
virtual machine. New
applications that require greater
levels of computational power
will be supported by Gigabit
connections aggregated with
10GbE uplinks. Increased use
of commodity servers and
virtualized servers places a
focus on the costs ofredundancy and management
operations in the network.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Server
virtualization
The worldwide virtual machine
software (VMS) market grew to
over $1.78 billion in 2007, up
from $1.05 billion the year
before. This was a robust 69%
growth from 2006 to 2007,
which equaled the 69% growth
recorded from 2005 to 2006.
IDC believes the growth in this
dynamic market will continue as
organizations increasinglydeploy VMS as a means of
decoupling the application
stack from the underlying
hardware and driving increased
"mobility" of virtual machines.
IDC views VMS as a
foundational technology to the
creation of dynamic, agile IT
environments and expects
robust growth in this market.
Networking service delivery will
begin to incorporate this new
form factor and create multiple
deployment options forcustomers and suppliers.
High. Server virtualization is
reshaping the IT and network
landscape. The use of server
virtualization to virtualize
desktops is creating demand
for WAN application delivery
products at the remote branch
and datacenter. Additionally,
form factors for WAN
application delivery and
datacenter Layer 47 arechanging to leverage the
benefits of server virtualization.
Branch platforms are emerging
that will enable multiple virtual
network and IT services to
coexist on a single consolidated
server.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Convergence of
routing and
switching
With Layer 3 Ethernet switches
capable of performing routing
functions and an increasing
number of WAN interfaces
available for what have
traditionally been switches
designed to create local area
networks, IDC believes the
lines between what is a LAN
switch and what is a router will
blur over time. Today, a routerremains a device whose
primary responsibility is
focused on the WAN interface,
but a growing number of
products are clearly capable of
and sometimes sold to
accomplish both tasks. IDC
believes this long-standing
assumption will continue to hold
true throughout the forecast
period.
Low. Products exhibiting router
and LAN convergence fill needs
from Cisco Catalyst 6500 with
WAN services serving as high-
capacity headend routers to
Force 10's datacenter-focused
SONET interface on its E-
Series to Adtran's NetVanta
1000 Series for small locations.
The end result is a
consolidation of footprint andgenerally decreased spending
on routers, while the switch
becomes the focal point for the
network spend as Ethernet
becomes a fixture in both the
LAN and the WAN
environment.
Management Management capabilities will
continue to lag behindcustomer needs. During this
economic downturn, network
managers will increasingly look
to network management tools
to optimize capacity planning
and minimize capital
expenditures.
Moderate. Voice, security,
wireless, telepresence, and allthe rest of the networking
buzzwords are for naught if
networking vendors cannot
significantly drive down the cost
of running the network and
providing IP services.
Application
networking
Application networking is
evolving the key technology
that enables the network to
provide business value to the
organization. In 2009, the
market for applicationnetworking was $1.8 billion
worldwide.
High. The network is on a
course to deliver a broad base
of services to the datacenter.
Application networking will drive
the datacenter to be more
responsive in real time to thebusiness.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Datacenter
networking
The datacenter network
traditionally consisted of three
networks: Ethernet, Fibre
Channel, and InfiniBand. IDC
believes that over time Ethernet
will begin to capture a greater
share of the network traffic in
the datacenter as IT
increasingly looks to deploy a
holistic datacenter architecture
built on one unified network.
Moderate. Ethernet will begin
to capture new greenfield
datacenters and new
application growth. But the
specialized high-performance
requirements of HPC
applications will continue to rely
on InfiniBand for the forecast
period. Ethernet will capture the
growth in storage traffic both
with FCoE and unstructuredcontent types, but Fibre
Channel will remain in the
datacenter throughout the
forecast period.
Fibre Channel over
Ethernet
FCoE aims to bring together
the predictability of the FC
transport and the ubiquity of
Ethernet infrastructure, making
possible for datacenters to
consolidate FC and Ethernet
cabling for increasingly
virtualized server pools. The
FCoE standard bypasses theTCP/IP stack, directly maps the
FC protocol over Ethernet, and
allows SAN traffic to run
natively on low-latency 10GbE.
Moderate. Mainstream
adoption of FCoE for server
connects will start to climb in
2010 but will not be significant
till 2011. Most of these servers
will access FC SANbased
storage via gateway facilities.
Broad availability on storage
systems will not happen untilthe 20112012 time frame.
FCoE will not generate
substantial new demand and
will ultimately replace FC SAN,
but not until well after 2013.
IT and application
consolidation
Geographically dispersed
business locations and/or
mobile/remote workforces are
driving both enterprises and
small businesses to Web
enable and centralize their
business application
infrastructures and provide end-user access via the Internet
and/or corporate WANs. This
IT/application infrastructure
model enables enterprises to
reduce operational costs,
improve regulatory compliance,
and enhance efficiency and
performance.
High. The movement to
consolidate and centralize is
increasing the dependence on
the network. IT organizations
are willing to pay for network
equipment and services that
offer a higher level of resiliency
and performance. This is one ofthe key drivers of network
equipment market growth.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Storage
centralization
Storage centralization provides
for both site-specific business
continuity and disaster recovery
and operational recovery. IDC
sees increasing levels of
adoption of centralized backups
of remote office data.
High. These storage
applications are driving demand
for storage network over
Ethernet and application
intelligence such as WAN
application delivery.
Labor supply
IT talent From 2010 to 2013, ITemployment, now at 35 million,
will grow by a factor of 1.2
worldwide. This is a constraint
in an industry that will grow by
a factor of 1.1 in spending, but
by more than 2 in devices
managed, 5 in information
created, and 8 in networked
interactions between
customers. IDC views this as a
long-term structural constraint.
The current recession has
tightened that constraint.
High. The availability and theskill level of talent have a direct
impact on markets as diverse
as network security and
outsourcing. The availability
may affect some markets or
adoption rates, such as the
development of SOA, but in
general, there will be other,
more immediate gating factors.
In the long run, the optimization
of the slow-growth labor pool
argues for cloud computing.
Small office/home
office (SOHO)
networking
SOHO environments will not
invest in learning about
networking, preferring instead
to depend on product vendors
to supply more turnkey, easy-
to-use, and easy-to-manage
devices that provide
connectivity and performance
without incurring significant
maintenance and management
costs.
Moderate. Deploying and
managing a network can be a
daunting task. A number of
vendors will work to simplify the
process of deploying networks
for the SOHO environment.
Many SOHO environments are
turning to WLAN as the primary
mode of connectivity. In these
cases, the few ports of
switching functionality are
integrated into the router.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Enterprise
networking
Enterprise customers will
continue to invest in educating
staff on new networking
technologies and protocols.
Moderate. The widespread
availability of general
networking expertise as well as
automation and remote
diagnostics lends confidence to
businesses investing in network
infrastructures and reduces the
cost of training specialists in
niche or emerging
technologies.
Distribution of
talent
The swing to emerging
geographies is evident. The
number of scientists and
engineers in the United States
and Western Europe is falling
compared with the number of
scientists and engineers in
China and India, while the
growth in the number of IT-
related employees in those
countries is three times the
world average.
High. The migration will
increase the overhead costs of
finding, recruiting, and
managing talent from global
pools. It should, however, also
lower costs and may even lead
to more innovation.
Telecom and IT The days of telecom as aseparate operating entity within
the enterprise or even as one
operating within facilities is
coming to an end as companies
fold those responsibilities into
IT. Even if an IT shop decides
not to migrate to IP telephony,
that staff transition could impact
the purchasing power and
direction of the classic
customer for telephony gear.
Moderate. IT departments thatdecide to hold off on IP
telephony and video may
embrace used equipment as a
short-term fix to holding on to
legacy systems.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Market
characteristics
Hardware Hardware markets, down more
than 8% in 2009, should
rebound to show spending
growth closer to 4% in 2010
and 7% in 2011. The rebound
will be dominated by PC
spending and, to a lesser
extent, telecom equipment.
High. Hardware spending,
about 40% of total IT spending,
drives spending in software and
services as well.
Software Software markets, down to
about 1% growth in 2009,
should rebound to show growth
closer to 4% in 2010 and 6% in
2011. The rebound will be
strongest in infrastructure
software, in part because of
growth in operating systems
(Windows 7), but more because
of growth in security software.
High. Software spending, about
20% of total IT spending, can
drive spending in both
hardware and IT and business
services.
Services Services markets, down to 0%
growth in 2009, should reboundto growth of 3% in 2010 and
4%+ in 2011. The rebound will
be strongest in operations
management in 2009 and 2010
(e.g., outsourcing), but
spending on implementation
services will kick in the most
new money in 2011 as new
projects come online.
High. IT services spending can
affect the rate of overallsolution adoption as well as the
migration to dynamic IT. It
accounts for about 40% of IT
spending.
Telecom The telecom industry, in its size
and utility, is somewhat
insulated from sudden
economic swings or at leastit has significant inertia. But
IDC expects worldwide telecom
services growth in 2010 to be
lower (2.4%) than in 2009
(3.8%). The fall is related to
market saturation and the long-
term impact of depressed
capital spending.
High. The IT industry has
already factored the telecom
industry spending into its
internal forecasts; the key is thepace at which convergence
takes place.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
The Internet Internet adoption is still going
strong, especially in emerging
economies. In the next four
years, 640 million new users
will come online and commerce
will double as will mobile users.
IDC does not expect the current
crisis to affect Internet
adoption.
High. Analysts and pundits
may underestimate the impact
of the Internet because the
"buzz" is gone, despite the
hype over Web 2.0. It will be an
enabler for both new markets
and new business models.
Market ecosystem
Telepresence
outside the
conference room
Telepresence technology is
primarily being used to recreate
across-the-table-type meeting
experiences.
High. Bringing telepresence to
other applications and settings
like telemedicine and high-
touch customer interaction
endpoints will drive innovation
and adoption of the technology
far beyond conferencing.
Public telepresence
facilities
Telepresence facilities are
currently being rolled out to
public facilities like hotels and
conference centers.
Moderate. Driving utilization
and awareness of these
facilities as well as the business
models to support them will be
the key to success.
Managed services
for
videoconferencing
and telepresence
Capex constraints will continue
to be primary barriers to
videoconferencing and
telepresence adoption, but
managed services that ease
those barriers will allow capex-
constrained businesses to
invest in the technology.
High. The MS business for
videoconferencing and
telepresence is still in its
infancy and will take time to
develop. However, given the
nature of MS as a means to
lower-cost barriers to adoption,
IDC expects this model to drive
videoconferencing down
market.
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T A B L E 1
K e y F o r e c a s t A s s u m p t i o n s f o r t h e W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g a n d
T e l e p r e s e n c e M a r k e t , 2 0 1 0 2 0 1 4
Market Force IDC Assumption Impact
Accelerator/
Inhibitor/
Neutral
Certainty of
Assumption
Consumption
Metcalfe's law and
interoperability
Metcalfe's law states that the
value of a telecommunications
network is proportional to the
square of the number of
connected users of the system.
The extent to which each level
of interoperability can take
place and at what pace will
greatly impact the value ofvideoconferencing and will
therefore significantly impact
adoption.
High. Every major vendor is
committed to interoperability
but political battles remain, and
IDC expects each layer of
interoperability to take three to
five years time at minimum.
The speed at which B2B
videoconferencing happens will
be a primary inflection point forMetcalfe's law to take hold.
Network upgrades The majority of enterprise
networking deals will be
upgraded to existing network
infrastructure.
Moderate. The importance of
the network in an organization
grows along with the number of
applications on the network.
Legend: very low, low,moderate, high, very high
Source: IDC, 2010
Table 2 shows worldwide videoconferencing revenue and endpoints, and Figure 1
shows videoconferencing revenue, for 20092014. Table 3 sho ws wo rldwide
telepresence-only revenue, number of telepresence rooms/systems, room/system
install base, and number of screens, and Figure 2 shows telepresence-only revenue,
for 20092014.
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T A B L E 2
W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g R e v e n u e a n d E n d p o i n t s , 2 0 0 9 2 0 1 4
2009 2010 2011 2012 2013 2014
Videoconferencing revenue ($M) 1,892 2,742 3,877 5,308 6,947 8,755
Growth (%) 16.7 45.0 41.4 36.9 30.9 26.0
Endpoints (000) 218 300 405 533 686 845
Growth (%) 5.4 37.4 35.0 31.5 28.9 23.2
Note: See Table 1 for key forecast assumptions.
Source: IDC, 2010
F I G U R E 1
W o r l d w i d e E n t e r p r i s e V i d e o c o n f e r e n c i n g R e v e n u e , 2 0 0 9 2 0 1 4
0
1
2
34
5
6
7
8
9
10
2009 2010 2011 2012 2013 2014
($B)
Source: IDC, 2010
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24 #221356 2010 IDC
T A B L E 3
W o r l d w i d e E n t e r p r i s e T e l e p r e s e n c e - O n l y R e v e n u e , N u m b e r o f T e l e p r e s e n c e
R o o m s / S y s t e m s , R o o m / S y s t e m I n s t a l l B a s e , a n d N u m b e r o f S c r e e n s , 2 0 0 9 2 0 1 4
2009 2010 2011 2012 2013 2014
Telepresence-only revenue ($M) 581 1,019 1,678 2,594 3,670 4,789
Growth (%) 84.0 75.4 64.7 54.6 41.5 30.5
Telepresence rooms/systems (000) 4 7 13 21 33 49
Growth (%) 112.0 92.8 77.2 67.6 56.3 48.4
Room/system install base (000) 5 12 25 46 79 127
Number of screens (000) 8 13 21 32 43 64
Note: See Table 1 for key forecast assumptions.
Source: IDC, 2010
F I G U R E 2
W o r l d w i d e E n t e r p r i s e T e l e p r e s e n c e - O n l y R e v e n u e , 2 0 0 9 2 0 1 4
0
1
2
3
4
5
6
2009 2010 2011 2012 2013 2014
($B)
Source: IDC, 2010
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2010 IDC #221356 25
M a r k e t C o n t e x t
In videoconferencing and telepresence, the market is in the midst of a transition
from meeting over video as an option of last resort to an alternative that's preferred
over traveling. While telepresence systems carry significant price tags for deployment
and operation for example, the cultural shift toward video as a good enough "acrossthe table" replacement for in-person meetings will accelerate swiftly through the next
decade.
The extent to which video calling/conferencing can become an impromptu
communication tool in the way instant messaging (IM) and voice are is unlikely in the
next five years. IDC expects the usage of videoconferencing to be primarily driven by
scheduled meetings, corporate communications, and training activities.
E S S E N T I A L G U I D A N C E
IDC believes videoconferencing vendors must do more to maximize the number of
capable endpoints. Integration with legacy systems as well as with commonly used
Web conferencing systems and collaboration tools like instant messaging clients
dramatically increases the value of these systems and demonstrates to clients a
commitment to enterprise unified communications and collaboration (UC&C), not just
video. Vendors should also help their customers drive usage via usage behavior
analysis and best practices. Polycom for example has taken a leadership role in
articulating the value of integrating video into UC&C environments and is focused on
delivering visual functionality to multivendor UC&C environments.
Enterprises should demand high- to low-end integrateable solutions that do not create
application or technology silos. As communications infrastructure components
converge, the last thing any enterprise should consider is placing videoconferencing
systems and equipment on an island. Phased pilot deployments are also
recommended to ensure that investments in videoconferencing are rolled out
appropriately to the right locations and to the right business units. Furthermore, the
adoption of videoconferencing is accelerating just as all things enterprise
communications are quickly becoming IT assets. Therefore, enterprises must
consider videoconferencing in the same context as larger IT initiatives including
virtualization, unified communications, and how video will be used beyond
conferencing.
L E A R N M O R E
R e l a t e d R e s e a r c h
Tandberg Acquisition Puts Cisco's Money Where Its Vision Lies (IDC
#lcUS22028909, October 2009)
Video in the Enterprise Proliferates: An Updated Snapshot of Current and
Planned Adoption (IDC #219871, September 2009)
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Will 2009 Become the "Year of the Great Enterprise Video Experiment"? (IDC
#lcUS21762909, March 2009)
S y n o p s i s
This IDC study discusses the worldwide enterprise videoconferencing and
telepresence market. Enterprise videoconferencing revenue is slated for double-digit
growth through 2014, with an IDC-estimated CAGR of 36%. Despite previous hype
cycles that have produced inflated forecasts of this market, IDC believes that only
recently have enterprise networks and videoconferencing technology (epitomized by
telepresence systems) been capable of delivering experiences worthy of initiating a
videoconference over a phone call or hopping on a plane. In a suffering economy,
videoconferencing gained much traction in 2009, and IDC expects significant growth
of this market over the next five years.
"IDC predicted that 2009 would be the year of the great enterprise video experiment,
and despite difficult economic conditions, the worldwide market for videoconferencing
and telepresence grew 17% year over year and will eclipse the $1 billion mark in
2010." Jonathan Edwards, research analyst, IDC's Unified Communications and
Enterprise Communications Infrastructure programs
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