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UCC Market Has Both Growth Opportunities and Challenges

By Kimberly Koerth
March 27, 2014 - News

The market for enterprise communication solutions in the U.S. and Europe offers considerable growth opportunities but also faces a number of challenges, including regulatory issues and limited understanding of unified communications technologies and their benefits.

That's according to new customer research analysis from Frost & Sullivan, which says vendors must educate customer organizations on the benefits of unified communications and collaboration, and take a more consultative approach to their sales efforts, focusing on business needs and value instead of the technology alone. They would also do well to deliver UC&C solutions that improve regulatory compliance at a lower cost given that IT decision-makers consider this the primary challenge for their departments today.

“Presently, video, Web and audio conferencing as well as mobile applications are the most widely deployed enterprise communication solutions across the U.S. and Europe," said Elka Popova, Frost & Sullivan's unified communiations and collaboration program director. “However, the use of more traditional video technologies and audio conferencing is expected to decline due to high costs and increased adoption of Web conferencing solutions. Among existing enterprise communications solutions, business-grade softphones, tablets and UC clients will witness the most significant increase in demand over the next three years."

Further, new business requirements such as the need to support remote workers coupled with mobility and bring-your-own technology trends are driving IT investments and related costs. Growing customer demands for social networking, visual collaboration and a more personalized experience are also key factors influencing IT-related expenditures, the report said. In fact, the cost impact of satisfying these additional needs is hitting IT decision-makers in the U.S., larger organizations and companies in the financial and health-care sectors the hardest. Overall, IT decision-makers in the U.S. are more affected by these costs than their counterparts in Europe.

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