SHARE



ABOUT THE AUTHOR


Melanie Turek
Melanie Turek is Vice President, Research at Frost & Sullivan. She is a renowned expert in unified communications, collaboration, social...
Read Full Bio >>
SHARE



Melanie Turek | September 28, 2010 |

 
   

World Web Conferencing Hosted Services Market: Need and Growth Don't Match

World Web Conferencing Hosted Services Market: Need and Growth Don't Match Revenue growth was slower than expected in 2009, but a general rebound is expected in 2010, with a return of healthy demand.

Revenue growth was slower than expected in 2009, but a general rebound is expected in 2010, with a return of healthy demand.

My colleague Roopam Jain recently published the results of Frost & Sullivan's annual World Web Conferencing Market study, and the research shows that a slow economy combined with the impact of declining prices resulted in lower than expected revenue growth for web conferencing hosted services in 2009: Global revenues reached $1.09 billion, growing at 10.5 percent over the previous year.

But we expect that to be a small blip in a strong upward trend. The growing need for real time collaboration, coupled with a rising interest in cloud based communications, continues to draw users to Web conferencing technology. As companies look for ways to accelerate decision making and boost collaboration, productivity and innovation, real-time communications are playing a larger role in everyday work life, making the overall outlook for web conferencing hosted services robust. It helps, too, that IT is making web conferencing services an investment priority as part of a bigger bundle of collaborative applications for mainstream communications.

Following a general recovery in 2010, we expect healthy demand for collaboration tools in general to result in increased spending on Web conferencing. Revenues are expected to reach $2.85 billion in 2015, with a projected revenue growth of 17.2 percent (CAGR 2009-2015).

The global market for web conferencing continues to morph as new technologies are developed and introduced. Cloud services that combine hosted email, groupware, and conferencing with social media tools are emerging, and companies are increasingly evaluating collaboration as part of a bigger enterprise communications purchase. These collaboration bundles will eventually overshadow sales of stand-alone Web conferencing tools, as users buy complete collaboration suites from a single vendor or service provider.

Indeed, what's most striking about the numbers is that despite the rise in interest in Software-as-a-Service (SaaS), and despite the fact that hosted services contributed 81 percent of revenues in the 2009 Web conferencing market, for the first time, on-premises revenues grew at a higher pace than SaaS revenues in this space. In 2009, on-premises revenues reached $263 million (14.6 percent revenue growth over 2008).That's mainly due to the growing adoption for premises-based UC solutions, such as Microsoft Office Communications Server and Lotus Sametime.

Certainly, SaaS will continue to be the dominant delivery model for Web conferencing for the foreseeable future, especially among SMBs. But as the world of enterprise communications converges, more companies will deploy premises-based conferencing applications to the majority of their end users. Frost & Sullivan expects premises-based Web conferencing to see a CAGR of 27.6 percent, compared to 17.2 percent for hosted services, for the forecast period.

Revenues for web event services (webinar and webcasting) reached $226.8 million in 2009, representing 16 percent growth over the prior year. Global web-based remote support market reached $209.3 million in 2009, growing by 18% over 2008.





COMMENTS



Enterprise Connect Orlando 2017
March 27-30 | Orlando, FL
Connect with the Entire Enterprise Communications & Collaboration Ecosystem


Stay Up-to-Date: Hear industry visionaries in Keynotes and General Sessions delivering the latest insight on UC, mobility, collaboration and cloud

Grow Your Network: Connect with the largest gathering of enterprise IT and business leaders and influencers

Learn From Industry Leaders: Attend a full range of Conference Sessions, Free Programs and Special Events

Evaluate All Your Options: Engage with 190+ of the leading equipment, software and service providers

Have Fun! Mingle with sponsors, exhibitors, attendees, guest speakers and industry players during evening receptions

Special Offer - Save $200 Off Advance Rates

Register now with code NOJITTEREB to save $200 Off Advance Rates or get a FREE Expo Pass!

February 22, 2017

Sick of video call technology that make participants look like they're in the witness protection program? Turns out youre not alone. Poor-quality video solutions can give users an unprofessional ap

February 7, 2017

Securing voice communications used to be very simple since it was generally a closed system. However, with unified communications (UC) you no longer have the walled protection offered by a dedicate

January 11, 2017

As cloud communications continues to grow and mature, many enterprises are looking to build a hybrid CPE-cloud strategy. Looking out over the next three years, how should enterprises expect the cl

February 17, 2017
From the most basics of basics to the hidden gotchas, UC consultant Melissa Swartz helps demystify the complex world of SIP trunking.
February 7, 2017
UC&C consultant Kevin Kieller, a partner at enableUC, shares pointers for making the right architectural choices for your Skype for Business deployment.
February 1, 2017
Elka Popova, a Frost & Sullivan program director, shares a status report on the UCaaS market today and offers her perspective on what large enterprises need before committing to UC in the cloud.
January 26, 2017
Andrew Davis, co-founder of Wainhouse Research and chair of the Video track at Enterprise Connect 2017, sorts through the myriad cloud video service options and shares how to tell if your choice is en....
January 23, 2017
Sheila McGee-Smith, Contact Center/Customer Experience track chair for Enterprise Connect 2017, tells us what we need to know about the role cloud software is playing in contact centers today.