Tighter Budgets, Tough Economy Seen Boosting Unified Communications
With bean-counters in every company carefully watching the bottom line, savvy managers everywhere are looking to cut costs and get spending under control. And according to new research, one area in particular is set to benefit.
According to a new report on the Unified Communications market, that industry is set to hit $106.4 billion in sales by 2022.
“Enterprises across the world are focusing to improve business communication processes by upgrading existing messaging and telephony infrastructure, and also by adding new applications supporting mobility,” the report’s author Credence Research, noted. “Rising market competition and unfavorable economic conditions are forcing organizations to reduce traveling budgets, which is driving the demand for Web conference and collaboration applications.”
It was just two years ago that on-premises unified communication (UC) solutions accounted for the largest revenue share of 57.8 percent in the overall UC communication market. And now, on-premises unified communication solutions are expected to see a steady growth through the forecast period as organizations across the world are investing a significant amount in IP infrastructure to support real-time unified communication. Cloud/hosted solutions are expected to see the fastest growth through the forecast period due to rising demand for conferencing solutions across the world.
Logically, the research found that the majority of revenue for unified communication systems is generated through large size enterprises.
“Large size enterprises use highly flexible solutions, which supports [a] higher level of integration, legacy systems and modular solutions,” the report said. “Small and medium size enterprises are increasingly investing in UC solutions that are simple to use and maintain. And cloud-based UC solutions are expected to gain more popularity in SMEs due to their low deployment costs.”
Banking, financial services and insurance represent the largest end-use sector for unified communication solutions, a segment that accounted for a 21 percent revenue share in the overall UC market by end-use verticals. Meanwhile, IT and telecom service provider are exploring UC solutions to provide efficient services to their clients. “This segment is expected to see the fastest growth through the forecast period 2015 – 2022,” Credence Research found.
Edited by Maurice Nagle