Report: Cloud Video Conferencing Set To Explode
The expansion and acceptance of video conferencing services in the enterprise has had at least one new side benefit: the growth of cloud-based video conferencing services. A new report forecasts that the cloud-based video conferencing services market could be worth $2.9 billion by 2020.
According to research company Global Industry Analysts (GIA), a major factor driving the adoption of cloud video conferencing services is the need among enterprises to reduce operational costs and extend conferencing beyond their network boundaries.
According to an online report, “the rising demand for enterprise mobility and the ensuing increase in the number of mobile workers could lead many businesses to pursue cloud-based video conferencing services. Growth will also be fostered by the continuous expansion of the global Internet network, launch of 4G networks, and proliferation of IP-based video conferencing systems.”
It was noted that the study found 85 percent of business professionals said they want one cloud-based video conferencing service for remote meetings and 71 percent said they believed they lost a deal due to lack of face-to-face interaction.
“IP based Video Conferencing Services represent a major product in the video conferencing services market,” it was discovered. “While on-premise video conferencing continues to account for a major share of revenues, future growth will be driven by increased adoption of cloud-based video conferencing services and managed video conferencing solutions. A key factor driving the adoption of cloud solutions is the need to curb infrastructure spending.”
Not surprisingly, the U.S. was cited as the largest market for such services, but the Asia-Pacific region is coming up fast, projected to achieve a compound annual growth rate of 13.5 percent through 2020.
The report also noted that as cloud video conferencing catches on, more players will join in, boosting the market even further. In particular, education, healthcare and government were cited as three prime areas for growth.