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 | March 01, 2012 |

 
   

Companies are Looking at Hosted, Managed and Virtual Solutions for UCC

Companies are Looking at Hosted, Managed and Virtual Solutions for UCC Frost & Sullivan also found that, in the overall UCC market, penetration is expected to nearly double in the next few years--yet almost one-fifth of companies do not plan any deployment in the next three years.

Frost & Sullivan also found that, in the overall UCC market, penetration is expected to nearly double in the next few years--yet almost one-fifth of companies do not plan any deployment in the next three years.

In Frost & Sullivan's recent survey of more than 200 CXOs, we asked respondents a lot of questions about their current and future plans for implementing unified communications and collaboration (UC&C) technology. For almost half of the participants, UC&C is a significant focus, but 19 percent say they aren't considering the technology at all. At least one-third of companies have implemented or are implementing UC, virtualized UC&C applications, or Communications-Enabled Business Processes (CEBP). If stated intentions materialize, penetration will nearly double within the next few years. And yet, almost one-fifth of companies do not plan to deploy such solutions within the next three years.

Today, 45 percent of companies use one or two providers for UC. But over the next three years, tightly integrated multi-vendor solutions are expected to take share from both non-integrated multi-vendor products and from end-to-end single-vendor solutions. Despite vendor marketing that promotes the benefits of end-to-end solutions from a single provider, it’s mostly smaller companies with fewer in-house resources that subscribe to this approach. Larger organizations continue to seek the performance, scale, and investment protection offered by best-of-breed, multi-vendor solutions.

One-quarter of companies use hosted services only or managed services only, while 15 percent use both types of service. Most users saw growth in their companies' use of both hosted and managed services over the past 12 months, and they expect growth to continue--especially for hosted services. Seventy-six percent of respondents say they expect their use of hosted services to increase somewhat or significantly; 59 percent expect similar growth for managed services. Interestingly, among companies that don't currently use any services, more expect to use managed services in the future than hosted services.

Cost factors rank high as both a driver and a restraint for the adoption of hosted services. Enterprises are attracted to the CAPEX avoidance, yet recurring monthly costs could lead to a higher total cost of ownership. While a shift toward hosted services is taking place due to market hype and maturing technologies, the survey clearly shows that awareness of these services is still low (29 percent of respondents don't know whether they are using managed or hosted services), and that some businesses will be reluctant to relinquish control over their communications infrastructure.

Regardless of how they implemented the technology, in 2010, roughly eight out of ten companies allocated up to 25 percent of the IT budget to communications and collaboration tools. Chief Executive Officers have the most influence in budget approvals for UC&C investments; conversely, business managers--often touted by analysts and consultants as necessary participants in the sales conversation--have the least influence over where money actually gets spent.





COMMENTS



August 16, 2017

Contact centers have long been at the leading edge of innovation in communications technology, given their promise of measurable ROI and the continual need to optimize customer interactions and sta

July 12, 2017

Enterprises have been migrating Unified Communications & Collaboration applications to datacenters - private clouds - for the past few years. With this move comes the opportunity to leverage da

May 31, 2017

In the days of old, people in suits used to meet at a boardroom table to update each other on their work. Including a remote colleague meant setting a conference phone on the table for in-person pa

August 16, 2017
World Vision U.S. is finding lots of goodness in RingCentral's cloud communications service, but as Randy Boyd, infrastructure architect at the global humanitarian nonprofit, tells us, he and his team....
August 11, 2017
Alicia Gee, director of unified communications at Sutter Physician Services, oversees the technical team supporting a 1,000-agent contact center running on Genesys PureConnect. She catches us up on th....
August 4, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, has lately been working on integrating enterprise communications into Internet of Things ecosystems. He shares examples and off....
July 27, 2017
Industry watcher Elka Popova, a Frost & Sullivan program director, shares her perspective on this acquisition, discussing Mitel's market positioning, why the move makes sense, and more.
July 14, 2017
Lantre Barr, founder and CEO of Blacc Spot Media, urges any enterprise that's been on the fence about integrating real-time communications into business workflows to jump off and get started. Tune and....
June 28, 2017
Communications expert Tsahi Levent-Levi, author of the popular BlogGeek.me blog, keeps a running tally and comprehensive overview of communications platform-as-a-service offerings in his "Choosing a W....
June 9, 2017
If you think telecom expense management applies to nothing more than business phone lines, think again. Hyoun Park, founder and principal investigator with technology advisory Amalgam Insights, tells ....
June 2, 2017
Enterprises strategizing on mobility today, including for internal collaboration, don't have the luxury of learning as they go. Tony Rizzo, enterprise mobility specialist with Blue Hill Research, expl....
May 24, 2017
Mark Winther, head of IDC's global telecom consulting practice, gives us his take on how CPaaS providers evolve beyond the basic building blocks and address maturing enterprise needs.
May 18, 2017
Diane Myers, senior research director at IHS Markit, walks us through her 2017 UC-as-a-service report... and shares what might be to come in 2018.
April 28, 2017
Change isn't easy, but it is necessary. Tune in for advice and perspective from Zeus Kerravala, co-author of a "Digital Transformation for Dummies" special edition.
April 20, 2017
Robin Gareiss, president of Nemertes Research, shares insight gleaned from the firm's 12th annual UCC Total Cost of Operations study.
March 23, 2017
Tim Banting, of Current Analysis, gives us a peek into what the next three years will bring in advance of his Enterprise Connect session exploring the question: Will there be a new model for enterpris....
March 15, 2017
Andrew Prokop, communications evangelist with Arrow Systems Integration, discusses the evolving role of the all-important session border controller.
March 9, 2017
Organizer Alan Quayle gives us the lowdown on programmable communications and all you need to know about participating in this pre-Enterprise Connect hackathon.
March 3, 2017
From protecting against new vulnerabilities to keeping security assessments up to date, security consultant Mark Collier shares tips on how best to protect your UC systems.
February 24, 2017
UC analyst Blair Pleasant sorts through the myriad cloud architectural models underlying UCaaS and CCaaS offerings, and explains why knowing the differences matter.
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.