Monday, 9 December 2013

Frost & Sullivan: Seven Enterprise Communications Scenes in 2014

Cloud and mobility set to be game changers in the 2014 ICT industry outlook
Sydney, 19 November, 2013 – The fast paced ICT industry is constantly evolving, and 2014 will see it undergoing a huge transformation, with many traditional ICT vendors struggling to grow or even maintain their market share. "Cloud and Mobility are the two main themes driving significant change in the ICT industry and driving disruption in the ICT market” says Audrey William, Head of Research, ICT Practice, Frost & Sullivan Australia & New Zealand. Frost & Sullivan expects these major trends in 2014:

#1 Microsoft Lync will become a more disruptive force in the UC market
Although still a relatively new player in Unified Communications with low market share, Microsoft has been gaining momentum in the last 12 months and has grown enough to be pose a threat to traditional UC vendors.

Channels and customers now regard Microsoft seriously and channels and IT integrators that used to sell only traditional telephony solutions are now incorporating Microsoft Lync into their product mix. Lync 2013 offers close to 95% PBX functionality. Increasingly, the adoption of Lync is a natural progression for companies using Active Directory, Sharepoint and Microsoft e-mail. These companies are now moving to Lync for IM, presence, collaboration and voice. Frost & Sullivan anticipates that traditional market participants in the Unified Communications space will increasingly feel the pressure from Microsoft in 2014.

#2 High usage of Apps will compel organisations to take enterprise mobility discussions seriously
As mobile devices are increasingly used for business, BYOD (Bring Your Own Device) and CYOD (Choose Your Own Device) will become important themes for businesses in developing a mobility strategy. Whilst the device itself is one part of the equation, greater challenges lie in how to manage apps, how to control which apps should be allowed and disallowed from employee's devices and having the right security measures in place as part of a wider enterprise mobility strategy. Given the sheer volume of devices and applications being used by employees, security is very critical for every organisation and specialist Mobile Device Management (MDM) vendors and security vendors will play crucial roles. Security has been highlighted in Frost & Sullivan's research as the single biggest challenge faced by organisations in implementing an enterprise mobility strategy.
Cloud based MDM applications as well as cloud based private enterprise App stores will become more relevant in 2014. Some of the benefits include greater control over which apps are used by employees. An enterprise App store also allows employees to download apps that have been approved by the organisation, without the need to worry about security or reliability issues.

#3 The rise of the Internet of Things
Frost & Sullivan estimates that there will be close to 80 billion connected devices by 2020 globally. M2M (machine-to-machine communication) is growing rapidly,  and we will see rapid growth in the number of devices with smart sensors, RFID tags and other intelligent input and output automated sensory systems, enabling high level connectivity between machines, devices and individuals. This will lead to innovation in how services are delivered in industries such as Healthcare, Automotive, Logistics, Transportation, Retail and Mining. Frost & Sullivan believes that the impact of IT on multiple industries will become increasingly pronounced over the next year.

#4 Telecommunication vendors will increasingly play a critical role in the delivery of ICT
With cloud and mobility driving significant change within businesses, the role of telecommunications service providers will become more prominent. Frost & Sullivan believes that telecommunication vendors will ramp up their service offerings across cloud, mobility, managed hosting, contact centres and enterprise communication services. Telstra is a good example of a telco that is driving the delivery of enterprise communication services out of its NAS (Network Application Services) division. Although telecommunication providers will face competition from Infrastructure-as-a-Service (IaaS) players such as Amazon Web Services, they will play an increasingly important role in the delivery, management and hosting of cloud services. Additionally, in the era of the Internet of Everything and of mobility, telcos will play an increasingly vital role in the delivery of ICT services.

#5 UCaaS (Unified Communications as a Service) will be the norm
As organisations come to the end of the life cycle of their telephony and other UC technologies, many are either returning to a traditional on-premise UC solution or moving to a hosted or cloud-based UC solution. Vendors and integrators that do not develop hosted or cloud-based offerings will find it increasingly difficult to compete in the UC market in 2014. Frost & Sullivan has observed a similar shift to the cloud in the videoconferencing segment, with solutions from vendors such as BlueJeans starting to become more prominent. Although there is still a large market for on-premise videoconferencing solutions, many organisations are looking at hosted and cloud-based offerings that can reduce their professional services and maintenance costs.

#6 Further disruption in Enterprise Communications will be caused by WebRTC
It is still early days for WebRTC (Web Real-time Communication), but Frost & Sullivan predicts this technology will really take off in the Enterprise Communications market. Vendors, channels and telcos are already starting to discuss potential adoption. At this stage, from a Unified Communications and Contact Centre market perspective, there are still questions about how rich the features will be in terms of multimedia capabilities, and how scalable the solution will be. However, browser-to-browser communications could eventually lessen the need for telephony devices and peripherals. Communicating will be as easy as clicking a link that will allow the user to make a voice or video call. Cisco and Mozilla announced recently that the free and open distribution of the H.624 codec means that these two companies can collaborate for real-time streaming of online video from the browser without plugins. The WebRTC space will be one to watch in 2014, and we can expect more announcements from Enterprise Communications vendors over the coming year.
#7 Google, Amazon will be a growing threat to ICT vendors
Although Google's penetration into the Enterprise Communications space is currently well behind traditional vendors that have been selling into the voice and video markets, Google has all the right pieces in place to now make significant inroads into the market.
A number of large organisations have moved to Google's cloud mail, and Frost & Sullivan expects more organisations will follow in 2014. Google is also working on upgrades to its video Hangouts, to be better able to handle high definition video. This could potentially challenge traditional vendor offerings. In 2014,   more integrators will offer hosted telephony for enterprise grade voice services from their own hosted telephony solution and bundle in Google hangouts as a hosted/cloud offering for enterprises. Google is also working on a number of ambitious plans in the areas of cloud, big data and the internet of things. Google's influence in the enterprise space will only get stronger.
Amazon Web Services will continue to grow fast 2014. Although many companies will continue to buy servers and storage from the likes of HP, IBM and Dell, a growing number of organisations now feel comfortable with buying servers and storage in the cloud for a fraction of the cost of on-premise storage.

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

Contact Us with questions:
events.us@frost.com

www.bestinformationtechnologyevent.com

events.us@frost.com

Frost & Sullivan's Global Wireless Test Equipment Market Presentation



Global Wireless Test Equipment Market

Download this presentation here:
http://www.slideshare.net/FrostandSullivan/global-wireless-test-equipment-market

Wednesday, 4 December 2013

Communities of Practice | Enterprise Communications

2014: Ubiquitous Connectivity and the Internet of Things

based on a blog by Andrew Milroy Nov. 12,  2013


2014 is set to be the year when the focus of both IT buyers and IT sellers, shifts to the Internet of Things (IoT). 

In 2014, more data will be generated by machines (‘things’) than by human beings. This creates enormous opportunities:
  • To analyze and use vast amounts of data.
  • To store data and source application functionality in/from the cloud.
  • To create, manage and support apps that enable the operation and management of IoT implementations.

To provide high speed connectivity between objects and the people, who work with them and use them.
Indeed, the explosion of IoT activity over the next few years will be driven by the nexus of low cost sensors, cloud computing, advanced data analytics and mobility.

Big Data

Using powerful analytics tools to take full advantage of the huge amount of data available is becoming common. Big data projects are increasingly being viewed as priorities. As individuals, we see the results of such projects all the time. For example, have you noticed how the ads that are served to you in your Facebook news feed, are increasingly well targeted?
The IoT is set to create much more data than is created by human beings. This data will be used to enable organizations to increase efficiency and effectiveness, grow revenues, innovate and transform the way they do business. Demand for tools that can visualize this data will increase as organizations seek to improve evidence based decision making.

Cloud Computing

In mature economies, cloud computing has become mainstream. Organizations in most mature economies, as we predicted, now need to find a justification for not using cloud computing as opposed to on premise alternatives, rather than the converse. The new cloud opportunities will be driven by the IoT. Data generated by low cost sensors will be stored and analyzed in the cloud. Applications which drive the functionality of sensors and other mobile devices will also be hosted and developed in the cloud. These cloud computing opportunities will multiply as the IoT becomes more widespread.


Apps

The app explosion will be further accelerated by the IoT. These apps will be developed in the cloud for deployment on any device or sensor. Platforms that allow this app development will become more widely used. Leading technology vendors, such as Salesforce.com, Microsoft, VMWare, Amazon and Google, will battle for dominance, as the provider of the cloud platform on which apps are developed. A professional services market centered around the development and management of apps will become increasingly significant in 2014.

Mobility and High Speed Networks

The penetration of smartphones has surpassed 50% in many economies. This is driving businesses to find ways of engaging their customers directly on their smartphones. Expect to see apps become the primary form of engagement with organizations. In other words, the first thing that people will do when they want to interact with their bank, airline, favorite retailer or restaurant , is find an app that enables and enhances that interaction. High speed networks will need to be deployed to enable this heavy use of increasingly sophisticated apps. From and IoT perspective, these networks will be necessary to rapidly and reliably transmit growing volumes of data between sensors and devices.

Some Specific IoT Opportunities

The biggest revenue opportunity today for an IoT ecosystem is transportation and logistics. The deployment of low cost IP enabled sensors within ‘things’ that move products around as well as within products themselves, opens huge opportunities beyond supply chain optimization.
Airbus is an excellent example of the use of sensors to drive performance in the transportation sector. The components that make up an A380 are fitted with sensors that can monitor ‘wear and tear’ in real time. This allows Airbus to create a dynamic maintenance process optimized by data continually being generated from components that are being used. From a technology perspective this requires a huge amount of storage and application functionality, as well as data analysis. Cloud computing, big data technologies and lower cost sensors will enable aircraft manufacturers and airlines to transform and optimize their maintenance processes.

Other industries are opening up to the opportunities created by the IoT. Smart cities, connected cars, and connected health are examples of transformations that are being driven by IoT. There is also a lot of interest in how the IoT will impact manufacturing. Soon, managers in the manufacturing sector will monitor and manage machinery from their mobile devices. The activity of specialized machinery such as drills will be monitored using myriad of sensors. This will enable manufacturers to replace expensive machinery based on usage rather than based on the amount of time the machine has been installed. These developments and others have huge implications on the way manufacturing plants are designed, operated and maintained.

Key IoT Challenges

The IoT is dependent on cloud computing, high speed connectivity and powerful data analysis tools. Issues around reliable connectivity and enterprise grade cloud computing services still exist. Reliability and performance issues will need to be addressed to allow the potential of IoT to be realized.

As more machines operate independently of human beings, the potential risks associated with security breaches multiply. Hacking a self driving car or an aircraft navigation system could have devastating consequences. Technology vendors must continually ensure that IoT technology is secure and that there are processes to address security breaches.
Although the ever increasing number of ‘things’ is expected to be IP enabled, it remains important that standards emerge, as ‘things’ may not be able to communicate with each other and the people that engage with them. There remains a risk that we create an ‘Internet of Silos’.

In summary, as cloud, data analytics, mobility and connectivity technologies mature, the IoT will open up enormous new opportunities across industries. Activities that were once the domain of specialized industry vendors will become open to the world’s leading technology firms. Technology vendors will place much greater focus on industry specific activities as they seek to fully benefit from the IoT and connected industries.

Please feel free to comment and let us know what your thoughts are.

The Expansion of the Protection Category Provides Carriers with Significant Opportunities

Next-generation mobile protection helps consumers protect, manage, optimize, and enhance their mobile device, mobile data assets, and the overall mobile customer experience. In this article, Frost & Sullivan will highlight the important benefits of next-generation mobile protection for carriers, and explain how carriers can generate long-term customer loyalty, enhance productivity, and increase revenues by offering Tnext-generation mobile protection to their customer base. 


Carrier Benefits of Next Generation Mobile Protection 
Exhibit 1 shows the important benefits of Next-Generation Mobile Protection for carriers. 
* No Trouble Found (NTF) refers to a device that has been returned for warranty replacement or service repair, 
but operates properly when tested.
Source: Frost & Sullivan

Reduced Customer Churn, and Increased Loyalty

An average smartphone customer generates approximately $2,000 in service revenue over a 24 month period.  Losing high value customers in this fiercely competitive market is simply unacceptable for a carrier. Frost & Sullivan’s analysis indicates that churn rates for customers that don’t have any mobile protection (and have had a device incident such as loss or theft, or a data-related incident) is nearly two times the churn rates for customers that have next-generation mobile protection (and have used it to file a claim, find their phone, protect their data, etc.). Thus, next-generation mobile protection has proven to be an extremely effective way to reduce churn for mobile subscribers and retain valuable customers.
Increased Revenue
Increasingly, consumers are considering integrated mobile protection services – over standalone handset insurance – as more comprehensive plans are introduced and the enhanced “value” of their investment becomes apparent. Therefore, the adoption of next generation mobile protection (i.e. mobile handset protection, mobile data protection, mobile application support, and mobile device support) provides an opportunity for carriers to price plans at a premium (when compared to standalone handset protection) and increase average revenue per user (ARPU).
Reduced Concessions and Cost of Customer Care
Smartphone users with mobile protection can quickly file a claim should they have a device incident such as loss, theft or damage, and receive a replacement device in about 24 hours. These programs allow carrier to avoid paying concessions, such as a providing a free or discounted phone, to keep a customer who doesn’t have a protection plan. Mobile protection also turns what could be a bad experience for the customer into a good experience, which generates positive consumer sentiment and goodwill toward the carrier. 
Reduced NTF and Remorse Returns
A significant percentage of recently purchased smartphones that are returned to the carrier are categorized as no trouble found (NTF) or remorse returns. Frost & Sullivan research indicates that in many cases, what is perceived as a malfunction (causing the user to return a mobile device) may simply be a case of unfamiliarity with the new features and functionality of their new device. An effective mobile application and device support offering can reduce the number of customers returning mobile phones during the remorse period, maximize customers’ use of the phone and data plans, and help avoid customer frustration which can impact affinity towards the carrier.
Increased Productivity of Carrier Sales Representatives
Frost & Sullivan research indicates the adoption of comprehensive mobile protection reduces the number of customers that walk into carrier stores with support questions. It also reduces the number of customers coming in for help with device incidents (such as a device loss, theft, damage, or a malfunction). A small percentage of customers that have mobile protection may still come into carrier stores to ask for help with various issues. However, research indicates that store representatives spend less than 10 minutes per device incident to help customers with mobile protection (compared to more than 50 minutes per device incident for uninsured customers). Therefore, by reducing the number of customer walk-ins, and by reducing the time required to help walk-in customers, mobile protection allows sales representatives to focus on revenue-generating activities such as sales.      
Leading Carriers Should Consider Offering Robust Mobile Protection Programs
Consumers expect ongoing support from their carrier for all of their device issues. It can be prohibitively expensive for carriers to deploy the required resources (such as a large team of technicians) to handle the gamut of smartphone-related support requests that inevitably materialize as devices become more sophisticated and interconnected. One of the ways in which carriers can support the various mobile protection requirements of their customers is by partnering with specialized providers that can integrate all of the components in a mobile protection offering into a seamless user experience. Carriers are encouraged to conduct a detailed analysis of the various mobile protection vendors in order to select the right partner for their device protection programs. Frost & Sullivan believes selecting a partner that can provide an end-to-end, integrated user experience that incorporates all components of mobile protection is a critical consideration for carriers’ to succeed in the rapidly evolving mobile communications market. 
Thoughts? Comments?