1 / 28

Audio and WebEx Market

Executive Summary
2 / 28 Executive Summary (1/2)

Porters Five Forces Model Web Conferencing Market

Impact Impact
The market has started to
mature with the presence of LOW HIGH LOW HIGH
numerous large players with Presence of several web
established solutions, resulting conferencing solution
in high barriers for entry of new providers (+)
suppliers(+)
Also, increased M&A activity in Standardised service offerings
this space such as the provided by market leaders
merger of Citrixs GoTo Family value-added features and
with LogMeIn suggests that pricing play a decisive role (+)
the market is etching towards
consolidation (+)
Web
Conferencing
Market

Impact Impact
LOW HIGH LOW HIGH

Presence of multiple options

The main requirement is the in the form of solutions
infrastructure for hosting, offered by large technology
which includes a significant Impact
firms and niche solution
number of suppliers as well
as a few companies such as LOW HIGH providers offers a decent
Microsoft have in-house selection base for business
Adoption rate of Unified Communication
hosting capability (-) customers to choose the
solutions and Unified Communication as a
right vendor (+)
service (UCaaS) is increasing (+)
3 / 28 Executive Summary (2/2)

Thales Points to Consider

Trends Description Advantages Implications for Thales
Security: UC software solutions
offer better information encryption Thales should look for meeting
Organisations are capabilities solutions with integrated audio,
opting for converged video and web conferencing for a
User-friendly: These solutions
audio, web and video single meeting, single license
simplify communication by
Unified solutions in their experience
streamlining and integrating all the
Communication quest for integrated
channels Thales should strive for a virtual
(UC) solutions
encompassing audio Cost Savings: Organisations can workplace, and hence
& video with content- further increase cost savings by encouraging cost-effective
sharing capabilities deploying UCaaS and avoiding communication and collaboration
capital spend on hardware, as it is among employees
offered as a service

It allows the use of integrated Thales should look for solution

Organisations are mobile apps with full-featured providers that offer mobility
looking for solutions productivity capabilities such as support irrespective of the
that can drive on-the- chat, real-time presence, device/platform
Mobility and go and seamless conferencing and file sharing When opting for multiple solution
Interoperability communication It also enables interoperability, by providers, Thales should check
among employees, virtue of which the web or video the interoperability of the
suppliers and other conferencing capabilities of a providers with other solutions and
stakeholders provider can be integrated with the organisations existing IT
third-party applications infrastructure

Rather than standalone solutions, Thales should look for a Unified

Communication solution to minimise internally managed infrastructure
4 / 28 Supply Market Analysis

Trends (1/3)

Transition to converged audio, web and video solutions Organisations are looking for integrated
TREND
solutions that encompass high-quality video with content-sharing capabilities

Organisations are working towards an increasingly virtual workplace and are looking for ways to
DRIVER
encourage cost-effective communication and collaboration among employees

To cater to users demand for a single meeting, single license experience, organisations are
integrating audio, video and web conferences into a single solution online meetings
According to a report by Frost & Sullivan on the web conferencing market, by 2021, 60% of web
conferences will use embedded audio from a web conferencing provider
With organisations shifting to hosted comprehensive meeting solutions, the spending by IT buyers on on-
premise-based videoconferencing infrastructure is expected to decline at a compound annual rate of 11%
INDICATORS from 2015 to 2021
Distinction between video and web conferencing is fast diminishing with increased video adoption
Technology solutions such as web real-time communication (WebRTC) and VoIP technologies are
lowering the barriers to adoption
o As per a report on web conferencing by Frost & Sullivan, by 2019, WebRTC will be used for 15% of
enterprise voice and video communications (up from ~5% in 2017)

Most large providers are offering unified communications solutions, and small/niche players are
facilitating the integration of their web and video conferencing capabilities with third-party applications
IMPACT
Thales should look for providers that offer Unified Communications solutions encompassing secure
instant messaging, web conferencing and team collaboration software that can be used alone or be
integrated with other applications

To scale up capabilities and support cost effectiveness and collaboration,

unified communication models will gain traction
5 / 28 Supply Market Analysis

Trends (2/3)

Increased adoption of Unified Communication as a Service (UCaaS) Rising preference for cloud-
TREND
based solutions is propelling organisations to opt for UCaaS

Higher penetration of mobile devices, growth in demand for mobile workforce and enterprise mobility,
DRIVER
and surge in social business integration are driving this trend

The UCaaS market was valued at 4.2 billion1 in 2013 and is expected to grow at a CAGR of ~24%
to 28.9 billion in 2022
To benefit from lower upfront costs, reduced complexity and higher speed of implementation, enterprises
are increasingly adopting cloud-based UC solutions as an alternative to traditional on-premise systems
INDICATORS Organisations and governments are spending on the transition to cloud, and global cloud PBX
replacement spending is expected to increase at a CAGR of 29% from ~2.3 billion in 2015 to 10.7
billion in 2021
According to Frost & Sullivan, installed users (of UCaaS) are expected to increase from 11 million in
2015 to 42 million in 2021

Thales can benefit from lower upfront and operating costs when opting for cloud-based solutions vs.
on-premise alternatives
However, loss of control over data and infrastructure is an important factor that hampers wider adoption of
IMPACT cloud UC
Almost all major IT services providers (such as Microsoft and Google) and telecom service providers
(such as Telstra, British Telecom, Verizon and Orange) have rolled out their UCaaS offerings; system
integrators such as Dimension Data and DTSI are also entering this market

Incorporation of cloud computing has boosted the adoption of UCaaS, on the back
of reduced UC deployment costs