Enterprise Communications Featured Article

Audio conferencing is used by organizations large and small as part of their enterprise communication suites, namely because it is affordable and doesn’t require special equipment for participants to join a conference from different parts of the world. This is one of the reasons it still enjoys a high adoption rate, even though currently there are technologies that make video conferencing just as affordable using devices that have become ubiquitous in many countries around the world: smartphones, tablets, laptops and PCs. A new analysis conducted by Frost & Sullivan (News - Alert) has revealed the European conferencing services market is gradually moving away from audio conferencing to Web and video conferencing.

According to the report, European audio conferencing accounted for 66 percent of revenue in the conferencing market in 2013, with Web and video conferencing accounting for a little over a third or 34 percent. However, by 2019 audio conferencing is expected to drop by 15 percent capturing 51 percent of the market, while Web conferencing is expected to claim more than a quarter of the market. The decline of audio conferencing is being driven by video hosted solutions, which will register double-digit compound annual growth rates in the forecast period.

The market generated revenue of $1.78 billion in 2013, and estimates this will reach $2.58 billion in 2019.

The analysis from Frost & Sullivan, titled “European Conferencing Services Market,” covers audio, hosted Web, hosted video and managed video conferencing services. It goes into detail about the interfaces used for conferencing solutions and availability of technologies that will sustain market development in the future. This includes the growth of mobile, broadband and cloud technology as well as companies providing new hosting solutions to drive the European market forward.

Even though these technologies are an important catalyst to increase the adoption rate of videoconferencing in Europe, the availability of these technologies at low cost and in some cases free options is an attraction point for the end user, according to Frost & Sullivan. While this is a great opportunity for end-users, traditional video conferencing service providers are losing market shares from new players who are introducing affordable solutions.

“The ability to provide UC and integration services is key to attract customers in the European conferencing services market. In the next two to three years, conferencing service providers' integration capabilities will be put to test as services become part of broader UC platforms. Service providers would do well to align their product strategies with their integration capabilities,” said Vaishno Devi Srinivasan, Information & Communication Technologies Senior Research Analyst, Frost & Sullivan.

Video conferencing is no longer a luxury reserved for multinational enterprises, today’s collaborative work environment and the need to work remotely has made this technology an integral part of many businesses around the world. This has introduced new players who are flooding the market with innovative solutions using readily available technologies at very affordable price points. As Srinivasan mentioned in the analysis, “service providers in this space are likely to taste considerable success over the forecast period,” and traditional on-premises companies have to start adapting to this environment if they want to remain relevant, or for that matter stay alive.