The PRWIRE Press Releases https:// 2012-02-16T06:42:00Z Frost & Sullivan: Technology – Not Business – To Drive New Business Models in 2012 2012-02-16T06:42:00Z frost-amp-sullivan-technology-not-business-to-drive-new-business-models-in-2012-1 Frost & Sullivan today announced its three foundation predictions for the Australian ICT industry in 2012. These are: Cloud computing will become mainstream; the rise in cloud services will drive mobile computing; and the pervasive nature of social networking plus the need to manage online reputations will see social media widely integrated into business activities. In addition, due to the dovetailing of these three trends, Frost & Sullivan predicts an inversion of the traditional relationship between technology and business so that rather than responding to business needs, developments within the ICT sector will increasingly drive business process change, in some instances forcing the creation of new business models. This shift in relationship is already evident in the media, retail, travel and hospitality industries and will become widespread across other sectors in the coming 12 months. The scenario was outlined in Sydney today by Frost & Sullivan analysts at the company's 2012 ICT Outlook briefing. Executives are warned that no matter what their industry they will need to closely monitor the activities of technology firms, particularly leaders such as Apple, Amazon, Google and Facebook, to assess how developments in these trends may impact their operations. “Consider the effect of mobile payment products such as Google Wallet, which are enabling technology firms to compete with financial services firms and which will change the way people spend money,” says Andrew Milroy, Vice President – ICT Research Asia Pacific, Frost & Sullivan. Within the enterprise Frost & Sullivan predicts the emergence of a new environment, one powered by the cloud with applications delivered via the Software-as-a-Service model to virtualised desktops. As distinctions between fixed and mobile communications erode and the workplace becomes device-agnostic, the concept of “bring your own device” will become readily accepted. Tablet adoption, which witnessed good growth in 2011, will continue to expand within the enterprise as the devices are used for e-mail, collaboration and video. On the consumer side, Australia has seen quite a remarkable uptake in smartphones, with the country having an even higher penetration rate that the United States at the moment according to Marc Einstein, Tokyo-based ICT industry manager for Frost & Sullivan. He added that one of the key reasons Apple and Samsung went to court in the market is that both have done so well. Mr. Einstein believes that this rapid growth in smartphones will continue to fuel a growing m-commerce and m-payment sector while machine-to-machine communications and m-health are also set for rapid growth in the market. All of this will lead to an increase in the number of employees opting for remote or home working arrangements. Video conferencing – using mobile, desktop and room-based systems – will increase, changing the way employees work and collaborate, and the role of the physical office will shift, becoming a place for face-to-face meetings rather than the hub of day-to-day corporate activity. Unified communications (UC) are crucial to achieving this vision, enabling essential applications in the areas of conferencing and collaboration, messaging, presence, email and contact centre management. With more than $2 billion spent on UC solutions in the past three years and growth predicted to continue for the long term, UC is an area of intense vendor and channel competition. To date the majority of UC deployments in Australia have been procured as application silos. Decisions are made on the basis of an individual project rather than with a “big picture” solution in mind. It's a pattern of behaviour that Frost & Sullivan believes will continue in the short term. This year almost 50 percent of UC revenues will come from voice and by 2017, the conferencing and collaboration segment is expected to account for close to 24 percent of all UC revenues. Effect on the Channel The move to the cloud will require significant change within the ICT channel. Audrey William, Research Director - ICT Practice, Frost & Sullivan, warns, “Resellers and system integrators who rely on license fees and box shifting are likely to face extreme challenges. Traditional services margins are already thinning so there is an urgent need for the channel to re-invent itself. The cloud will bring new opportunities but to capitalise on them, resellers and systems integrators are going to have to find different ways of adding value for clients.” Other major predictions for 2012 include: Social media will create opportunities for growth in the contact centre domain Expect the emergence of numerous Australian social media start-ups Acquisitions of service providers and channel partners will become common in the next 12 months E-mail will evolve into a more collaborative platform that includes social media, video, voice and collaboration Contact centres have reached the juncture where customer experience must be enhanced to incorporate social and mobile trends Smartphone penetration will reach 70% of active users in 2012, Android remain the leading OS 4G will start to take off in 2013-2014 M-commerce and M2M communications will be the fastest growing new mobile verticals About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com Frost & Sullivan: Managed and Hosted UC Services to Drive Growth in the Overall Australia UC Services Market 2012-02-06T23:57:00Z frost-amp-sullivan-managed-and-hosted-uc-services-to-drive-growth-in-the-overall-australia-uc-services-market Growth in the Australia UC Services market in 2011 was driven by strong demand for end-to-end managed services, primarily in the area of videoconferencing endpoints, and hosted solutions such as voice-based applications or IP telephony according to Frost & Sullivan's latest research release, Australian Unified Communications Services Report 2011. In the medium to long term, demand is forecast to slow slightly but remain solid, achieving a compound annual growth rate of 13.8 per cent between 2011 and 2018. The growing significance of hosted and cloud-based solutions is gradually driving a shift away from on-premise solutions. The State of the MarketThe Australian UC services market is divided into five segments: hosted UC services, managed services, consulting services, installation and integration services, and maintenance services. Hosted UC services, which includes UC applications provided over a cloud-based model, is the largest segment in the Australian market accounting for 45 per cent of all UC services revenues in 2011. The expected shift towards hosted and cloud-based models will continue to drive revenues and adoption of services in this segment, resulting in a predicted revenue contribution of 50 per cent by 2018. Managed services, which includes end-to-end management of UC applications by a service provider, is experiencing increased demand driven by the ease of using a third party to manage UC applications, and the desire of businesses to reduce their internal IT overheads. Managed services accounted for 15.5 per cent of UC services revenues in 2011and is expected to rise to 18 per cent by 2018. Consulting remains a relatively small contributor to the market, accounting for 7 per cent of revenues. Despite its size, the segment is emerging as an important, specialised capability for service providers, typically requiring a skill set capable of integrating business objectives with technology. By 2018, consulting is expected to represent 10 per cent of revenues with growth driven by the convergence of communication mediums such as social media and UC and a growing need to integrate disparate customer information from enterprise applications such as CRM and ERP. The one-off deployment requirements of installation and integration services accounted for 20.5 per cent of services revenues last year. However, as the installed base of hosted and cloud-based solutions grows, the contribution from this sector will decline. By 2018, Frost & Sullivan anticipates that installation and integration services will drop to 15 per cent of all UC services revenues. Maintenance services, which include on-going support, troubleshooting and infrastructure upgrades for organisations, accounted for approximately 12 per cent of UC services revenues. Once again, the trend towards hosted and cloud-based solutions which will decrease customer ownership of IT infrastructure and applications is expected to result in a decline within this segment. By 2018, the contribution of maintenance services revenues is likely to reach 7 per cent. 2011-2018 Trends Other predictions contained in the report include: Although demand for hosted and cloud-based models is steadily increasing, the on-premise model will continue to be dominant in the next three to five years. The majority of organisations will employ a phased approach in their shift to a fully hosted or cloud-based model. End to end managed services will address this by allowing organisations to own the equipment while a service provider handles the day to day running and maintenance of the systems. Hosted voice and conferencing solutions will drive the growth in the Hosted Services segment accounting for the majority of revenues throughout the forecast period. Adoption of videoconferencing solutions is creating demand for specialist audio-video integrators skilled in integration, support functions, and with a deep understanding of audio and video technologies. The significance of such capabilities was highlighted by Telstra’s acquisition of iVision, Other major players in the market are expected to either invest in building their existing video capabilities or strengthen their portfolio through acquisitions. Corporate acceptance of a “bring your own device” policy is gaining momentum, raising the need for mobility-related services from initial set-up and integration to ongoing services such as troubleshooting, security and connectivity. Audrey William, ICT Research Director, Frost & Sullivan, says, “The Australia UC Services market will drive a change in the delivery of services over the next 5 years. With Hosted and Managed Services growing in importance, channels, service providers and systems integrators need to re-invent themselves to offer value add services and this means changing the existing model of selling services. Margins are thinning in the areas of maintenance and integration services. Cloud based solutions will also pose a threat to existing services offered by channels and hence for players to survive in this game, the need to offer services beyond basic services will be critical.” Frost & Sullivan's Australian Unified Communications Services Report 2011 forms part of the Frost & Sullivan Enterprise Communications Research: 2011 program. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com Frost & Sullivan: 2011 - The Year That Security Took to the Cloud 2011-12-14T23:26:00Z 2011-the-year-that-security-took-to-the-cloud-1 Sydney, 15 December 2011 - The Australian security-as-a-service market, which includes the delivery of content security services over the public network, grew by 17.2 per cent during the 2011 calendar year and is now valued at $38.4 million. Ongoing migration from on-premise software and increasing cloud services penetration among small businesses is expected to drive a robust compound annual growth of 16.6 per cent through to 2016, taking the market to a value of $83 million. These are among the major findings contained in Frost & Sullivan's latest cloud computing research: A Strategic Analysis of the ANZ (Australia, New Zealand) Security as a Service Market. Cloud adoption in Australia is amongst the highest in the world and software-as-a-service is the most popular service model, used by 72 per cent of cloud computing users. Australia is the largest market by revenues in Asia Pacific for many software-as-a-service vendors and the majority of security-as-a-service vendors have already established a local strong presence. The marked shift to security-as-a-service during the past 12 months has been driven by a number of factors including the business desire to classify IT expenses as operating rather than capital expenses. This ensures a more predictable monthly expenditure for organisations along with other benefits such as lower up-front costs, greater standardisation, ease of upgrades and ubiquitous access. Another factor aiding the adoption of security-as-a-service is the shortage of qualified IT expertise. Shortage of qualified in-house security professionals has led to a dramatic increase in demand for contractors and specialist security experts, and has raised the costs for end-user organisations. Security-as-a-service removes this issue, at the same time as lowering management and maintenance overheads, by placing responsibility for delivery and maintenance of the security solution on the cloud services provider. The other major attractions of security-as-a-service are: the flexibility it gives an organisation to scale up or down depending on organisational needs; the simplicity of implementation as messaging security often requires just a change in the Mail Exchange record, while for web security, cloud forwarding can be enabled on proxies, firewalls and routers; and the ability to protect users irrespective of their work location. Despite the growth in the market, organisations still hold some concerns about moving security to the cloud with the most common being fear of loss of control by outsourcing to a third party service provider and the question of data sovereignty. Large organisations are also being held back by the potential regulatory impact of relying on the Asian or US-based data centres used by many of the existing security-as-a-service providers. From a technology viewpoint this use of international data centres has also raised uncertainties about latency, particularly as it applies to web security. Web browsing is a synchronous action with real-time two way communication. The laws of physics mean that round-trips are longer in slow network connections and/or when the data centre is far away from the user. Frost & Sullivan suggests that this will ensure that latency continues to be a prominent restraint for adoption of web security as a service in the medium term. The banking, financial services and insurance (BFSI) sector is leading demand for security-as-a-service from the cloud, driven by the desire to ensure business continuity, prevent loss of intellectual property and enhance employee productivity. This sector has also been an early adopter of add-on modules such as encryption to adhere to regulatory compliance. Other prominent users include federal and state government ministries and agencies looking to consolidate IT infrastructure across departments, and legal, mining and e-business services. The vendors The major market participants in the Australian security-as-a-service market segment include Symantec.cloud, Websense, ZScaler, Cisco, Trend Micro, McAfee, Microsoft and Google. While Symantec is an early entrant in this segment and is a clear market leader, over the last couple of years, the other vendors have been gaining increasing traction with organisations in Australia. Telecommunications service providers are also an important delivery channel for security-as-a-service. The two foremost examples of this are Telstra's partnership with Symantec.Cloud for the delivery of business security solutions and Optus' relationship with Websense for the delivery of email and web security-as-a-service. Andrew Milroy, Vice President – ICT Practice, APAC, Frost & Sullivan, says, “Although some hesitancies remain, within the past year the security-as-service market has evolved from being a niche segment to an increasingly mainstream application. Organisations are attracted by the cloud model's promise of business agility, low overheads and substantial cost benefits. Momentum and awareness are there, and we expect the market to show steady, solid growth over the next five years. The only slightly negative blip on the radar is a likely dip in 2012 due to the current economic slowdown in Australia and the ongoing crisis in global financial markets.” Frost & Sullivan's Strategic Analysis of the ANZ (Australia, New Zealand) Security as a Service Market forms part of the Frost & Sullivan’s Cloud Computing Research: 2011 program. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com <http://www.frost.com/> on six continents. For further information, please contact: David Bass | Bass Public Relations Direct: 61 2 9922 6820 Mobile: 61 416 017 194 david@basspr.com.au Frost & Sullivan: Infrastructure as a Service Adoption Leaps Ahead As More Data Centres and More Participants Entice Companies to Experiment With Cloud Computing 2011-11-16T00:46:00Z frost-amp-sullivan-infrastructure-as-a-service-adoption-leaps-ahead-as-more-data-centres-and-more-participants-entice-companies-to-experiment-with-cloud-computing Sydney, 16 November 2011 – Australia experienced a huge spurt in the number of companies adopting the public cloud Infrastructure as a Service (IaaS) delivery model within the last 12 months, with almost half (49%) of all cloud computing users trying IaaS. A growing number of local market participants plus an increase in the number of local data centres are driving awareness of the benefits of infrastructure from the cloud, resulting in 38.3% growth for the IaaS technology segment in 2010 and revenues of $27.5 million. The IaaS market is expected to remain strong, growing at a compound annual growth rate of 49.8% over the next seven years to reach a total value of $466.5 million by 2017. The findings were released today in Frost & Sullivan's latest cloud computing report, AStrategic Analysis of the Australian Infrastructure as a Service Market 2011. The study defines IaaS as a provisioning model in which an organisation outsources the hardware used to support business operations. The service provider owns the equipment and is responsible for housing, running and maintaining it with the client typically paying on a per-use basis. The two components of IaaS are compute-as-a-service, which is sold as a combination of server computing, memory and storage; and storage-as-a-service which is primarily sold as stand-alone storage space in the cloud. IaaS' ease of use, particularly through web-enabled self-provisioning and the instantaneous provision of infrastructure are the major drivers encouraging adoption by Australian organisations. Other positive factors include infrastructure scalability, the ability to turn IT infrastructure into an operating expense, the elimination of up front capital expense, a reduced requirement for internal resources, low barriers to entry and lack of long-term commitments. The main restraints holding back market growth continue to be related to privacy and security, with organisations trying to understand the impact of regulatory compliance on data sovereignty issues. The report also identifies the inability to precisely track the location of data in the cloud as a high concern for business. High latency, reliability of service levels and data handling in the areas of migration, recovery and archiving are other areas of concern. Frost & Sullivan suggests that public cloud IaaS providers will need to deliver similar or equivalent service to that which organisations are familiar with in order to encourage greater adoption. The most popular component of IaaS, accounting for 91% of the Australian market, is compute as a service, which is sold as a combination of server computing, memory and storage. Given the low cost of trying out the service, many enterprises have taken the opportunity to experience the benefits and being satisfied, have begun migrating sections of their infrastructure to the cloud. High organisational interest and significant cost savings are expected to drive demand for compute as a service through to 2017. The second component of IaaS – Storage-as-a-Service – is not witnessing the same level of interest due to the need for huge bandwidth to transfer the large amounts of data that organisations deal with today. Those companies that are turning to storage-as-a-service typically do so to augment their storage infrastructure due to increasing data storage requirements, or as a low-cost option to support their disaster recovery/business continuity strategies. Arun Chandrasekaran, APAC Research Director – ICT Practice, Frost & Sullivan, said, “Australian companies will continue to turn to IaaS in the short and medium term, driven by cost pressures, scarce in-house resources and an increasing need for business agility. The last few years have served as an important catalyst for adoption of infrastructure-as-a-service due to the stringent focus on cost saving. Australia is already the largest market in Asia Pacific for public cloud IaaS and we expect a huge increase in the number of domestic suppliers in the years ahead. Adding further impetus to the market, several global service providers have indicated that they will be setting up local data centres to capitalise on the burgeoning market growth.” The biggest adopters of IaaS are IT and telecommunications service providers who are turning to the services to meet fluctuating IT requirements and from a desire to achieve cost efficiencies. There is also strong demand from software companies that have developed Software as a Service (SaaS) solutions. Other vertical markets active in IaaS include government, the education sector, internet-based businesses such as gaming, social networks and web portals, hospitality, retail and professional services. Other major findings of the analysis include: 43% of organisations are now using some form of cloud computing; 41% believe that cloud computing is a number one priority for them in the current year; Almost one third of IT decision-makers say that senior management is increasingly exerting pressure on IT to look at a cloud alternative in order to reduce costs and increase business agility; 41% of organisations believe that the risks associated with cloud computing – such as security, privacy and reliability - far outweigh the benefits. Frost & Sullivan's Strategic Analysis of the Australian Infrastructure as a Service Market 2011 examines current and anticipated future demand, major drivers and restraints affecting the Australian IaaS market. The report forms part of the Frost & Sullivan’s Cloud Computing Research Program 2011. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. Frost & Sullivan: Online Search: Australia's Fastest Growing Online Advertising Segment 2011-11-14T01:02:00Z frost-amp-sullivan-online-search-australia-s-fastest-growing-online-advertising-segment Sydney, 14 November 2011 – According to Frost & Sullivan's latest digital media research report, online search and online directory advertising expenditure grew by 23 per cent in the 12 months to June 2011 to reach a total value of $1.4 billion. Search advertising grew particularly strongly, outperforming all other mainstream online advertising activities including online general advertising (online banner, advertorials and email marketing), online classifieds and online directories, with annual growth in the 12 months to June 2011 of 28%. Within the online search and directories segment, search advertising accounted for over three quarters (76 per cent) of revenues while online directories advertising claimed 24 per cent. Advertiser interest in search and online directories remains strong with a significantly higher proportion of 2011 advertisers planning to increase their investment in both search and online directories advertising compared to last year. However there remains a note of caution in the industry due to uncertainty as a result of the fragile recovery from the global financial crisis continues, with 53 per cent of advertisers indicating that their budget allocation to search advertising has remained unchanged in 2011. Google continues to dominate the local search advertising market with an 88 per cent revenue market share. Among other players, Microsoft's Bing in partnership with Yahoo Search Marketing (YSM) has shown slow but steady growth since its launch in 2009. Another recent entrant, the Australian owned and run independent search network, AdLux has also successfully established itself as an alternative to Google and YSM/Bing in the Australian search advertising market. Continuing the trend of the past few years revenues from online directories advertising recorded slower growth, dropping from 10 per cent growth during the 2010 financial year to 7 per cent in 2011. The fragmented market which is served by both multi-industry and industry specific online directories is dominated by Sensis which accounts for 85 per cent of revenues. Outside of Sensis the other mainstream and niche directory segments displayed reasonably strong growth, albeit from a relatively small base. However, the report cautions that the online directories market is increasingly becoming a more challenging environment as its business model is being impacted by substitutes, particularly Internet search, and some of the smaller online directories are losing market share or being forced out of the market. Frost & Sullivan predicts that online search revenues will continue to outpace those from online directories over the next five years, with search expected to experience compound annual growth of 16 per cent compared to 6 per cent for online directories. Other important trends to emerge in the search and online directories segment during 2011 include: * The rise of social media as a component of the search engine optimisation (SEO) strategy. Most local and international search agencies have developed a separate strategy for optimising on social media sites, driven by marketers who are increasingly turning to pay per click advertising on social media channels to complement placements on traditional search engines. * Social media is also becoming an important part of the online directories offering. One example of this can be seen in the September 2011 launch of a free White Pages App from Sensis, incorporating Twitter feeds, Facebook links, trading hours and special deals. * The increasing ownership of smartphones and mobile tablet devices is creating a tremendous opportunity for the search and online directories market, with most of the major online directories players launching apps. In addition to those for the iPhone and iPad, a greater variety of apps from other operating systems (such as Google's Android platform) are now starting to hit the market. * Directory searches for traditional search items such as phone numbers are becoming less important due to the increasing availability of this information via general web searches. Frost & Sullivan suggests that the next phase in the evolution of online directories is to provide a higher level of user experience around the theme of ‘discovery’ of information regarding local businesses such as restaurants, especially in the area of social media via tools such as ratings & reviews. Phil Harpur, Senior Research Manager, Frost & Sullivan said, “Based on local trends and from what we've seen internationally, we expect search to continue to increase its share of this segment, growing from 76 per cent in 2011 to 83 per cent in 2016. Major drivers for growth will include new opportunities that are emerging from the mobile and social media channels. At the same time, the total search and online directories segment is becoming more mature and this will result in slower growth across both search and online directories areas during the next five years.” Australian Online Search and Directories Market 2011 forms part of the Frost & Sullivan’s Digital Media Research Program 2011. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. Frost & Sullivan: Infrastructure Refreshes, Upgrades and Revived Projects Return Contact Centre Applications Market to Growth 2011-11-06T23:20:00Z frost-amp-sullivan-infrastructure-refreshes-upgrades-and-revived-projects-return-contact-centre-applications-market-to-growth Sydney, 7 November 2011 –The Australian market for contact centre applications bounced back in 2010, recovering from a decline in 2009 to record growth of 16.4 per cent. The study found that the nature of applications being deployed within contact centres is changing and that demand is shifting towards performance optimisation, quality management and multimedia applications. Before 2009, the Computer Telephony Integration, Automatic Call Distribution and Interactive Voice Response applications accounted for the majority of contact centre applications revenues in Australia. Over the last two years however the Call Monitoring and Workforce Management solutions have grown particularly strongly, accounting for about 42 per cent of overall revenues in 2010. Frost & Sullivan predicts that his trend will continue over the coming seven years. Over the next seven years the market is forecast to grow at a compound annual growth rate of 8.1 per cent. These are among the major findings contained in Frost & Sullivan's latest research, Australian Contact Centre Applications Market 2011. Four emerging trends Four distinct trends in contact centre applications emerged. The first is the rise in social media within customer service. As consumers increasingly use the social medium to voice their opinions and to interact with companies, contact centres are seeking to follow suit. Most vendors are now building solutions that tightly integrate with social media, allowing agents to communicate with customers over multiple channels. While uncertainly about the extent of social media's impact on contact centres is expected to cause businesses to delay major deployments, it is clear that solutions such as social CRM and social media analytics will change the way organisations manage their customer service functions and will impact on traditional contact centre applications. The second notable trend is a vendor focus on speech analytics. Contact centres are discovering they can improve first call resolution rates using keywords to understand the reason for a customer's call and to track the frequency of a particular topic. Many speech analytics solutions enable contact centres to categorise calls based on the nature of the enquiry – such as billing, sales or technical support – and to use the resultant data to project and manage call volumes. A number of application vendors are already offering such solutions and acquisitions of speech analytics providers are expected to increase in the short to medium term. The advent of cloud computing and a shift away from license based on-premise solutions is the third major trend of the past 12 months. Contact centres are increasingly attracted to the scalability offered by cloud solutions, especially as usage-based payment options allow organisations to avoid upfront license investments while providing the flexibility to adjust to periodic increases in call volumes. Frost and Sullivan predicts that cloud based solutions will be a particularly important driver for growth within the price sensitive small to medium business (SMB) segment, and that they will also help to speed the adoption of business continuity, disaster recovery and mobility technologies within the contact centre. The final trend to emerge is the use of mobility solutions to enable agents to escalate issues and reach subject matter experts regardless of their geographic location. For example, contact centres can now access the services of experienced agents who opt to work from home or on a part-time basis. With the contact centre platform delivered over the cloud, agents can become available using any internet enabled device such as a smartphone or tablet. Customer facing industries lead growth Banking, Financial Services & Insurance (BFSI) and Telecommunications were the major verticals to lead contact centre adoption in 2010, accounting for nearly 60 per cent of deployments. Government and Education was the third largest vertical, driven by deployments at major public service departments such as Centrelink and the Australian Taxation Office. Retail, another customer-facing industry, is also expected to generate strong demand as customer service and the role of the contact centre becomes more tightly integrated with the business strategy. Leading vendors Genesys, Avaya and Cisco are the top vendors offering a full range of contact centre solutions, while Verint and NICE Systems lead in monitoring and optimisation solutions. Interactive Intelligence, Zeacom and ShoreTel are steadily growing in terms of market reputation and customer wins. These vendors are typically strong in the SMB segment and are also increasingly competing with larger vendors for enterprise deals. Among the channel, Telstra, Optus-Alphawest and Dimension Data are Australia's leading contact centre solution partners, accounting for the majority of deployments. Their strong brand name and market presence make partnership with these channels critical for major contact centre vendors. Other significant channel partners for contact centre solutions include NSC and UXC Connect (previously Integ). Audrey William ICT Research Director – Australia and New Zealand, Frost & Sullivan, said, “Pent-up demand led to a burst of activity in the contact centre applications market during the past 12 months. Previously postponed projects are getting back on track while at the same time innovations in hosting and cloud computing are making deployments easier. In addition, the Australian contact centre applications market is witnessing strong growth in performance optimisation solutions. With the growth in social media activity, there is interest to deploy social media and monitoring applications in the contact centre.” Frost & Sullivan's Australian Contact Centre Applications Market Report 2011 analyses revenues and trends in the Australian contact centre applications market. Applications included in the report are: Automatic Call Distributor, Outbound Systems, Computer Telephony Integration, Interactive Voice Response, Workforce Management, Call Monitoring, Speech Technology and Multimedia Systems. The report forms part of the Frost & Sullivan’s Enterprise Communications and Collaboration Research Program 2011. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. Frost & Sullivan Announces 2011 Australia Excellence Awards Recipients 2011-10-27T23:24:00Z frost-amp-sullivan-announces-2011-australia-excellence-awards-recipients Sydney, 27 October 2011 – Frost & Sullivan has recognised outstanding performance of companies in the Australian Information Communications Technology (ICT) industry by presenting 18 awards to deserving organisations at the 2011 Frost & Sullivan Australia Excellence Awards. Staged last night in Sydney, the prestigiousawards event, now in its sixth year was attended by key opinion and business leaders within Australia’s ICT industry. Benchmarked against leading companies in each category, the recipients of these awards represent the best-of-breed in their sector in the country. This year’s awards were focused on three industry categories: Security & Infrastructure, Enterprise Communications and Telecommunications. The Frost & Sullivan Awards are presented to companies that demonstrate excellence in the industry, based on the commitment and innovative business strategies required to advance and excel in the competitive Australian market. Each of these award recipients were selected based on their market performance, including market share leadership, revenue growth and degree of product and service innovation displayed over the past year. ”This year’s award recipients include the most innovative and effective IT and telecommunications vendors who have demonstrated business excellence in their respective market segments. These companies all operate in highly competitive segments but have succeeded in maintaining market leadership,” said Mark Dougan, Managing Director, Frost & Sullivan, Australia and New Zealand. Frost & Sullivan congratulates all the recipients of the 2011 Frost & Sullivan Australia Excellence Awards: Security & Infrastructure UPS Vendor of the Year - APC by Schneider Electric UPS Service Provider of the Year – Emerson Network Power Secure Content Management Vendor of the Year – Websense Network Security Vendor of the Year – Juniper Datacentre Services Provider of the Year – Equinix Security as a Service Vendor of the Year - Symantec Infrastructure as a Service Vendor of the Year – Amazon Web Services Software as a Service Vendor of the Year – Salesforce.com Enterprise Communications Enterprise Video Vendor of the Year – Cisco Systems Contact Centre Applications Vendor of the Year - Genesys Hosted Contact Centre Service Provider of the Year - Telstra Application Networking Vendor of the Year – Riverbed Unified Communications Vendor of the Year – Cisco Systems Telecommunications Managed Security Services Provider of the Year - Verizon Business Data Communications Service Provider of the Year - Telstra Broadband Service Provider of the Year - Telstra Mobile Service Provider of the Year - Telstra Service Provider of the Year - Telstra ”By maintaining their strategic focus of delivering new, customer-driven IT business capabilities to organisations that demand high performance, these vendors have demonstrated their capacity to fuel future growth and set the bar higher for others in the industry,” said Dougan. The 2011 Frost & Sullivan Australia Excellence awards are supported by ZDNet Australia as Awards Partner. For more information on the awards, visit http://www.frost-awards.com.au About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. ENDS Demand for Website Banners To Significantly Decline as Advertisers Turn to Online Video 2011-10-09T23:34:00Z demand-for-website-banners-to-significantly-decline-as-advertisers-turn-to-online-video Sydney, 10 October 2011 -The face of Australia's online general advertising market will undergo a marked change in the coming five years as demand for mature inventory segments including online display, advertorials, integrated site content, sponsorships and electronic direct mail/electronic newsletters declines. The use of simple banners will reduce significantly and in their place, Frost & Sullivan predicts very strong growth rates for online video advertising and an increasing proportion of rich media through to 2016. The Australian Online General and Mobile Advertising Market Report 2011 released today by Frost & Sullivan shows that the online general advertising market grew solidly in the 12 months to June 2011, rising by 11.9 percent to reach a value of $635 million (excluding mobile advertising). This rate of growth was slightly higher than the year prior, when the market was influenced by the lingering impact of the global financial crisis. Over the next five years the market is forecast to grow at a compound annual growth rate of 10.6 percent, reaching a value of $1.051 billion in 2016. The study notes that in a survey conducted with 240 senior management level executives in July 2011 just over half of advertisers stated they increased their online general advertising budget during 2010/11. The budget changes are highly correlated to the size of organisation, with larger organisations more likely to have increased expenditure during the prior 12 months. The largest growth rates during this period were experienced in the industry verticals of Finance and Insurance, and Fast Moving Consumer Goods/Retail. The major multi-sector publishers such as NineMSN, Fairfax Media, Yahoo!7 and News Digital Media continue to retain the largest slice of the online general advertising revenue pie, however the growth of social media advertising has been exceptionally high. Social media publishers now account for seven percent of the total market. By far the dominant player in this segment is Facebook which holds approximately six percent of the overall online general advertising market share. YouTube accounts for approximately four percent of revenues, largely due the growth of video advertising. Mobile Advertising Mobile advertising expenditure rose steadily during the last 12 months but growth rates have remained below market expectations as the mobile advertising market has not yet gained the high level of traction that was anticipated a few years ago. Frost & Sullivan notes that the mobile market has yet to gain enough momentum to reach the tipping point where media agencies will begin to view it as a mainstream alternative to online and off-line channels. The major restraints that have inhibited adoption of mobile advertising to date include a lack of locally available mobile sites, under-utilisation of consumer targeting, lack of rich media ad serving functionality, insufficient industry and ad agency awareness and fragmentation of mobile operating systems. However, many of these issues are now being outweighed by the positive drivers for mobile advertising including rising smartphone penetration, increased data caps on standard mobile plans, increasing amounts of mobile content and a growing range of mobile advertising inventory. As a result, more than 60 percent of advertisers surveyed by Frost & Sullivan say they plan to increase their mobile advertising budgets in 2012. Excluding spending on application builds and Bluetooth services, the mobile advertising market, grew by approximately 26 percent during 2010/11 and was valued at $13.9 million. The market is expected to grow at a compound annual rate of 43 percent over the next five years, leading to a total market value of $82 million by 2016. Peak growth is forecast for 2013/14, by which time the remaining major inhibitors to market adoption will be overcome. Phil Harpur, Senior Research Manager Australia/New Zealand – ICT, Frost & Sullivan, says, “The two big trends in advertising over the next five years will be a rapid growth in video advertising driven by an increased presence in online video streaming and significant growth in mobile advertising. Right now Australian mobile advertising expenditure is low compared to the UK and the USA, despite the fact that Australia’s smartphone penetration is now roughly on par with those markets, but this is already starting to change and we anticipate rapid growth as mobile advertising, driven by further adoption of smartphones and strong growth in Tablet PCs, gains more acceptance amongst advertising agencies as a crucial part of the overall advertising mix”. About The Australian Online General and Mobile Advertising Market Report 2011 The Australian Online General and Mobile Advertising Market Report 2011 was prepared following more than thirty executive interviews with major publisher groups, independent publishers, advertising network brokers, and major media agencies. Source data also included an advertiser survey involving more than 240 senior management level executives with control or insight into the business marketing budget and strategy. Frost & Sullivan's Online General and Mobile Advertising Market Report 2011 forms part of the Frost & Sullivan’s Digital Media Research Program 2011. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. Frost & Sullivan: Wireless Charging, Energy Harvesting, and Smart Pills among 50 Technologies to Reshape the World 2011-10-04T23:31:00Z frost-amp-sullivan-wireless-charging-energy-harvesting-and-smart-pills-among-50-technologies-to-reshape-the-world Sydney – 5 October 2011 - Wireless Charging, Energy Harvesting, Smart Pills and batteries for renewable electricity storage and electric vehicle batteries are some of the top 50 technologies and innovations identified by Frost & Sullivan in their recent research report titled, TechVision 2020. TechVision 2020 is an annual research initiative of Frost & Sullivan’s Technical Insights team. Its primary objective is to identify key technologies that will impact business in this decade. “Intelligence on several emerging and disruptive technologies and innovations from around the globe was collected and numerous interviews were conducted with innovators and developers. Each technology is then rated and compared across many parameters such as global R&D foot print, year of Impact, global IP patenting activity, private and government funding, current and emerging applications, and current and potential adoption rate,” says Rajiv Kumar, Partner at Frost & Sullivan. He adds, “Finally, the list was condensed to the Top 50 technologies which we believe have the maximum potential for wide-scale launch and mass commercialisation.” The selected technologies are spread across nine Technology Clusters which represent the bulk of Research & Development (R&D) and innovation activity today. For instance, in the Clean & Green Technology space, one of the hottest trends currently, the advancement in battery technologies for renewable electricity storage and electric vehicle batteries will increase the adoption of zero-emission power generation and automobiles. Also, the need for increasing mobility has given rise to technologies in the Microelectronics and Information & Communication Technology clusters such as wireless charging and cloud computing. “With wireless charging, consumers will no longer have to depend on wired chargers to juice-up their mobile phones, tablets and cameras. The technology involves a metal plate, which will charge the device wirelessly, and will be deployed in public places such as airports, cafes, and restaurants,” says Kumar. Likewise, flexible electronics will completely revolutionise our perspective on devices. “Imagine a personal electronics device, which is completely flexible – can be rolled, twisted and does not get damaged; could also have capabilities such as being scratch resistant, hydrophobic, dust repellent etc. – wouldn’t that be amazing. It would have applications in multiple sectors such as consumer electronics, healthcare, military, logistics, gaming in the coming years,” he says. In the Life Sciences and Biotechnology cluster, the trend to have personal genome sequencing is catching up. Each individual will have their own DNA sequence analysed and medical treatment will be personalised for that individual. Future applications will include the best cosmetics to use, the type of food that will provide the best nutrition, which environmental triggers to avoid, and more. While each Technology Cluster is an independent domain demonstrating excellence in Global R&D and innovation, all clusters are virtually interlocked. The vast arrays of current and future applications of these dynamic technologies are interdependent and overlapping. These technologies are rapidly evolving and form a vortex of innovation driving new concepts, products, and services. The TechVision 2020 report showcases each selected Technology and offers insights on: Technology Maturity and Adoption Ratings Year of Impact Global Patent Landscape Global Technology Development and Adoption Footprint Private and Government Funding Trends Key Stakeholders and Promoters Technology Roadmap Applications Roadmap If you are interested in more information on the TechVision 2020 report, please send an e-mail to david.hymers@frost.com,or call 61 2 8247 8909. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com. Social Media Makes the Shift from Consumer to Enterprise Communications Tool 2011-10-03T23:56:00Z social-media-makes-the-shift-from-consumer-to-enterprise-communications-tool Growing user familiarity and ease of use are driving enterprise adoption of social networking and team collaboration (TC) solutions. Although still in its infancy Frost & Sullivan predicts that the Australian Enterprise Social Networking (ESN) and TC market will grow in excess of 25 percent between 2013 and 2015. Banking, financial services and insurance (BFSI), professional services and education have emerged as the early adopters of ESN and TC, partially due to the need for communication and collaboration between multiple branch locations and mobile workers. Additionally social media and social media monitoring technologies are starting to see penetration in the contact centre segment. There is a urgent need for contact centre agents to track and monitor what customers are talking about a product or service and subsequently this would allow the agent to reach out to the customer and provide feedback more effectively. These are among the major findings of Frost & Sullivan's latest investigation into enterprise communications, “Australian Enterprise Social Media and Collaboration Report 2011”. Audrey William, ICT Research Director, Frost & Sullivan says, “The online social communities that individuals have built up in the past few years are now spilling over into work. As a result the role of social media is changing. Right now, the ability to collaborate and share information internally is one of the main reasons organisations encourage the use of social media. The applications maintain the same level of familiarity and usability as consumer applications, enabling employees to quickly learn and accept the solutions. Over time, this approach will be extended to include customer-facing functions.” “The market for Enterprise Social Media and Collaboration is in its early growth stages and as such there will be acquisitions and partnerships in this space. Vendors in the Unified Communications, Video conferencing, Software and IT segments have recently acquired social media and collaboration companies to strengthen their existing offerings whilst others have embarked on partnerships with some of the leading vendors in the Enterprise Social Networking and Team Collaboration space. For instance, VMware and Cisco strengthened their capabilities by acquiring Socialcast and Versly respectively. Additionally Polycom recently announced a partnership with Jive software. We are also witnessing contact centre vendors acquiring or partnering with companies in the social media segment” The current preference for on-premise collaboration solutions will steadily change in favour of cloud based solutions as a number of enabling factors take effect. Information security is typically the main concern hampering the adoption of cloud based solutions. Such concerns are particularly high in the government and BFSI segments. Advancements in mobile devices continue to detach the user from fixed desktop systems. As a result, users are increasingly demanding the ability to access a solution from any connected device and not be limited by a license based model that restricts access to a client computer. Such trends, combined with the pricing and flexibility advantages of a cloud. By 2018 a majority of the ESN and TC solutions will therefore be delivered over a cloud model. Microsoft, IBM, OpenText, Salesforce.com and Yammer are some of the key players in the Australia market. Acquisitions and partnerships are expected to serve as vehicles for additional organisations seeking to gain a foothold in the market as well as for those looking to strengthen their product portfolios. In early 2011, Frost & Sullivan surveyed 162 IT managers and IT decision makers for their views on ESN and TC. The major highlights from this research include: Nearly half of organisations consider the ability to target specific groups as well as agility and speed to market as the main advantages offered by social media over traditional marketing channels; Organisations are often unsure how they can develop clear strategies to integrate social media into their customer service strategy. This trend is reflected by 44 percent of businesses being either in early stages of adoption or considering deployment; Despite the high awareness of the various collaboration solutions available, a majority of businesses are still reliant on email for document sharing. 46 percent of businesses use email to send and receive documents across teams. Only 17% of businesses currently use vendor applications such as SharePoint, Lotus Team Room or Google Docs. Frost & Sullivan's Australian Enterprise Social Media and Collaboration Report 2011 forms part of the Frost & Sullivan’s Enterprise Communications and Collaboration Research Program 2011. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & SullivanFrost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. Internet TV advertising market set to grow 476% in five years as online video streaming accelerates 2011-09-19T00:28:00Z internet-tv-advertising-market-set-to-grow-476-in-five-years-as-online-video-streaming-accelerates The internet TV advertising industry is set to grow at a compound annual growth rate of 42% from 2011 to 2016, increasing in value from $54 million to $311 million according to Frost & Sullivan’s latest report on the Australian Online Video Market, written in association with media and technology company, The Video Network (TVN). This massive growth outlook follows an explosion in online video streaming in Australia, which grew 550% from less than 2 billion videos in 2007 to 11 billion in 2011, primarily driven by cheaper bandwidth, greater choice of online content and higher data caps. On an individual basis, Australians are now watching around 10.2 hours of online video per month and are quickly catching up to US and UK consumers who watch 17.3 and 17 hours of online video per month respectively. Peter Ostick, The Video Network’s Co-Managing Director, said Australia was on the verge of a significant tipping point when it comes to how and when we consume video content. “As technology improves and the variety of content increases, Australia's video content viewing habits are changing rapidly with more of us choosing to watch television online. While this sector is in its early days, internet TV is already reaching upwards of 12 million viewers per month according to comScore statistics, which represents a huge potential for advertisers within this emerging market,” he said. Online video is defined as any form of digital video that is been delivered to the user via the internet. Content may be either short or long form, according to duration of video content, with the most popular sites being YouTube, ABC iView, ninemsn, yahoo!7 and Fairfax. The two main content segments in Australia are media and entertainment, which includes short user generated clips, catch-up TV, live streaming and movies, and corporate. While short form video accounts for the majority of online video viewed in Australia, the report predicts long form will overtake short form content as the key driver of online video growth by 2013. Phil Harpur, Senior Research Manager, Frost & Sullivan, said there are many factors at work making online video attractive to Australian viewers. “Consumers are increasingly using their PC/laptops, tablet PCs and smartphones for entertainment. They've become comfortable with the idea of subscription-based video content. Video production is becoming cheaper by the day. Internet capable TVs are more common, as is high definition video. All of this, along with bandwidth and data improvements, will continue to drive a rapid increase in video streaming over the next five years.” The advertising opportunity According to Ostick advertising agencies and marketers are increasingly recognising online video as an integral part of the overall advertising solution as online video consumption grows and the industry becomes more sophisticated. “The 2010 release of the Video Ad Serving Template (VAST), which makes it easier for advertising agencies to track and report on video ad campaigns, has facilitated the ad industry’s acceptance of this segment. We expect standards will continue to improve to offer greater targeting and brand protection as it matures, and TVN intends on leading this innovation,” Ostick said. Harpur said the predicted growth in expenditure on online video advertising, which is currently around 2% of the total online advertising spend, will accelerate as media buyers test and accept the medium, the number of online video viewers grow and the amount of professional video content increases. “Industry growth combined with an under supply of inventory in the market has meant yield and demand for online video remains high in 2011, in sharp contrast to traditional online display advertising which is challenged by an oversupply. “But for the online video advertising market to grow at its true potential, quality content needs to be produced at a much higher rate. The expected increase in availability of long form video content will go some way towards remedying this, opening up advertising opportunities, especially for mid-roll advertising,” Harpur said. Despite these hurdles, Frost & Sullivan anticipates internet TV advertising will outperform all other major online advertising segments such as online display (banner ads), advertorials, integrated site content, sponsorships and e-newsletters. The main sources of online video advertising inventory are the network resellers who are divided into two camps: display advertising networks such as VideoEgg and Joost Video Ad Network, who see increased yield opportunities in video; and organisations such as The Video Network who offer dedicated video offerings. End About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. About The Video Network The Video Network is a media and technology company established in 2010 to enable the explosion of professional content available on internet TV. We are Australia’s largest premium multiscreen internet TV network reaching 7.7 million viewers across IPTV, smart phones and PC. Our technology, The Video Platform, allows publishers to dynamically insert interactive ads into video content across web, mobile, tablet and IPTV, delivering improved ad spend efficiencies while providing global and local content producers a means to commercialise their content. Frost & Sullivan: Australian Unified Communications Market to Reach $1 Billion by 2015 2011-08-15T20:44:00Z frost-amp-sullivan-australian-unified-communications-market-to-reach-1-billion-by-2015 Sydney, 16 August 2011 – Government incentives for video deployments and pent-up demand following the 2009 economic slowdown helped to drive an 8.8 per cent increase in Australia's Unified Communications (UC) market in 2010. Video and mobility applications will ensure that demand remains strong over the next six years with market value forecast to reach $1 billion by 2015, rising to $1.21 billion by 2017. These are among the major findings contained in Frost & Sullivan's latest research, Australian Unified Communications Market Report 2011. The study analyses the total addressable opportunity, market trends and the competitive landscape for all major UC application segments and enabling platforms including enterprise telephony; email; unified messaging; conferencing and collaboration; mobility; unified client, presence and integrated UC applications; and contact centre applications. It found that government, banking and financial services institutions (BFSI) and professional services led the adoption of UC in 2010, accounting for more than half of the year's UC revenues. Education and healthcare were the other two notable verticals. “The continuing need for cost savings given the slow economic recovery and the desire for productivity and competitive gains have been the major drivers for deployments across all verticals,” says Audrey William, ICT Research Director, Australia and New Zealand, Frost & Sullivan. “The proliferation of mobile devices and the consumerisation of IT are both strong drivers for enterprise mobility and BYOD in Australia while security, ease of use and reliability will be key considerations for organisations working towards a UC mobile strategy for their organisation.” She continues, “Video adoption will also see good growth in the enterprise segment. Video conferencing is quickly approaching a stage where it is becoming pervasive and available to all employees within an organisation. This is largely due to the popularity of free and low cost applications such as Skype, ooVoo and Google Chat. This has also contributed to the high awareness of video in the Australian market.” Another contributing factor to the market's return to growth has been vendor innovations in product licensing and packaging strategies, with the introduction of greater customisation aimed at reducing the cost of acquiring, implementing and maintaining UC solutions. Disasters turn focus to business continuity The report notes that recent floods in Queensland have driven a change in business attitudes towards business continuity and disaster recovery solutions. As the floods caused many businesses to be cut off from customer communications, the importance of a customer contact centre being operational despite major disruptions has been emphasised. Such a trend is expected to trigger a shift away from fully on-premise infrastructure towards hosted and cloud based solutions. Consequently UC as a Service (UCaaS) will experience steady up-take over the next few years, becoming the preferred delivery model by 2015. Top UC trends Other trends identified by the study include: * Conferencing and collaboration will experience strong growth through to 2017 largely due to demand for video conferencing solutions. The pervasiveness of free and low cost applications is creating a high awareness of video. This, combined with a proven business case for reducing travel costs and increasing productivity, will see this segment of the market grow at an expected compound annual growth rate (CAGR) of 16.7 per cent over the next six years. * The rise of BYOD (Bring your own device): Employees are increasingly using their own mobile devices such as smartphones and tablets to connect to the enterprise network and this in turn is driving uptake in UC applications such as email and instant messaging. As the devices improve due to hardware and application advances, their acceptance as an enterprise device will increase, helping to grow the UC mobility segment by a CAGR of 15.5 per cent through to 2017. * Mobility: About 55 per cent of organisations are convinced of the role of tablets as an enterprise device with a further 29 per cent planning a trial or deployment. Apple, with the iPhone and iPad, is the preferred vendor for mobility solutions followed by Google (for its Android IOS) and RIM (Blackberry). * Social networking: Close to 70 per cent of organisations indicate they are using some level of social networking applications within their organisation. * Enterprise telephony: Despite accounting for close to half of all UC revenues (46.7 per cent) in 2010, enterprise telephony is nearing market saturation and future growth will largely rely on organisations upgrading their existing infrastructure and migrations to IP telephony. * SIP trunking and virtualisation are the technology enablers that will drive further uptake of UC solutions, with SIP offering fixed mobile convergence and better interoperability between multi vendor platforms, and virtualisation helping to maximise utilisation of existing computer power. * Cisco, Microsoft and Avaya are the major local UC vendors, accounting for a large portion of the overall market in 2010. Telstra, Dimension Data and Optus-Alphawest are the major channel partners, accounting for a majority of deployments. Global system integrators such as IBM, BT, AT&T and Verizon are typically the preferred choice for large-scale deployments across multiple global offices. William says, “The IT managers we spoke to for this study have made their views on unified communications crystal clear. Almost unanimously, they are looking to UC for improved business processes and an ability to reduce costs. Until recently the biggest challenge was the overall cost of purchasing and running such solutions. With vendors working on ways of taking the initial sting out of deployment and as more organisations realise the benefits of UC deployments, this concern is dissipating and we anticipate strong market growth in the years ahead.” Frost & Sullivan's Australian Communications Market Report 2011 forms part of the Frost & Sullivan’s Enterprise Communications and Collaboration Research Program 2011. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com <http://www.frost.com/> on six continents. For further information, please contact: David Bass | Bass Public Relations Direct: 61 2 9922 6820 Mobile: 61 416 017 194 david@basspr.com.au Frost & Sullivan Study Says Data Centre Security Should Be Considered An Investment, Not a Cost 2011-07-14T05:19:00Z frost-amp-sullivan-study-says-data-centre-security-should-be-considered-an-investment-not-a-cost Sydney, 14 July 2011 - High profile hacking incidents and data breaches along with newer trends such as enterprise mobility and social media have helped to make security the number one data centre management issue for more than half of Australia's IT decision makers. Other significant operational challenges include the need to manage heterogeneous virtualisation and storage platforms while grappling with a lack of portability and unified management tools, and capacity planning without being able to accurately estimate demand. Even though security leads the list of data centre concerns many organisations are failing to make adequate investments in people, processes and technology to redress the issue due to the view of security as a cost rather than an investment. These are among the major findings in the latest report by Frost & Sullivan, “Cloud Computing Research: 2011, A Strategic Analysis of the Australian Data Centre Infrastructure and Services Market” Australia's data centre landscape Data centres in Australia fall into two categories: captive centres which are built, operated and managed to meet internal organisational requirements, and outsourced or hosted centres whereby organisations lease space and co-location services such as cages, racks and basic network connectivity from data centre providers. In the outsourced model the data centre provider is also responsible for meeting the security, power and cooling needs of the centre, and customers can use the space to deploy their own servers. Frost & Sullivan found that 27% of all organisations have outsourced hosting of their data centre infrastructure to third party service providers. Arun Chandrasekaran, Research Director, ICT Practice, Frost & Sullivan stated that adoption rates differ according to the size of organisation, with mid-market companies showing a lower adoption rate of 18%. “This compares to one third of large enterprises that say they are using hosted facilities due to reasons such as high availability, cost advantages and robust disaster recovery”, he explained. Server and storage virtualisation is the primary data centre investment priority for organisations right now but adoption of server virtualisation remains slow and steady. Another area of gradual change within the data centre is that of cloud computing. The Australian market continues to lead the adoption of cloud computing in Asia Pacific with 43% of enterprises using cloud computing in one form or another. “41% of IT decision makers believe that cloud computing is a top priority for them in the current financial year”, elaborated Chandrasekaran. To date public cloud services have experienced the highest adoption rates, however private clouds are gaining in popularity due to their ability to combine the virtualisation, automation and pay-as-you-go benefits of public clouds and the enterprise-grade requirements for security, reliability and service level agreements. The study notes that increased server virtualisation and investment in network security will help to underpin additional adoption of private cloud environments. The year ahead Storage, servers and virtualisation are the areas where most customers will increase their spending in the current financial year. Demand for storage is being driven by the increasing amount of data, rich media and compliance considerations that mandate storage of data such as customer records for longer periods of time. Expenditure on servers will be driven by the need to accommodate rich media as well as by the trend for data centre consolidation which is resulting in workloads moving from head offices and branches to the data centre. The increase in virtualisation investment is expected to grow out of the continuing shift towards server virtualisation in the data centre plus through the emergence of virtual desktops that will solve many organisational challenges relating to security, control and mobility. Organisations that outsource their data centre requirements will gravitate towards providers that can offer the latest cooling techniques, stringent security controls and power specifications capable of supporting the latest generation of high-performance computers such as blade servers. Chandrasekaran says, “The data centre market is evolving and we expect to see some shrinkage in the number of low-end outsourced service providers over the next few years as companies turn towards utility-priced, scalable managed hosting and cloud services that require a lower investment in equipment and personnel. At the other end of the market however, demand for secure, latency-sensitive infrastructure should ensure solid growth for high-end co-location providers.” Frost & Sullivan's Cloud Computing Research: 2011, A Strategic Analysis of the Australian Data Centre Infrastructure and Services Market forms part of the Frost & Sullivan Australian Cloud Computing Research program. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. Frost & Sullivan: Australia Leads Asia Pacific Adoption of Cloud Computing 2011-05-25T22:37:00Z frost-amp-sullivan-australia-leads-asia-pacific-adoption-of-cloud-computing Sydney, 26 May 2011 - Australia continues to lead the adoption of cloud computing in Asia Pacific with 43% of enterprises now using cloud computing in some form and 41% of IT decision makers indicating that cloud computing will be a top priority for them in the current fiscal year. The primary reasons that companies are turning to cloud services include reductions to capital and operational expenditure, cost savings, increased business agility, and the ability to deliver IT on-demand. These are among the key findings in the latest Frost & Sullivan report, State of Cloud Computing in Australia: 2011. The study identifies three main cloud computing deployment models: public clouds which are typically offered via a web application or as web services over the internet and involve applications such as customer relationship management, messaging, conferencing, payroll and office productivity; private clouds which are owned by the user company and/or a service provider deployed inside a corporate firewall; and hybrid clouds involving a combination of public and private cloud services. Hybrid cloud deployments are the most popular model in Australia having been adopted by 22% of total enterprises and by more than 50% of current cloud users. This compares to 18% of organisations using public clouds. Frost & Sullivan expects hybrid clouds to remain the dominant deployment model in the near term due to the flexibility offered to choose the right cloud environment based on cost, security, reliability and service level agreements. Most customers are struggling to understand the differences between a private cloud and virtualised infrastructure or between private cloud and datacentre as a service. With a lack of clear metrics on usage measurement and asset ownership, this confusion is likely to persist in the short-term. Delivery models When it comes to delivery of cloud services the decade-old software-as-a-service model continues to lead the way, having been adopted by 72% of cloud users. Infrastructure-as-a-service which delivers compute and storage on a utility basis, has seen rapid take-up in the past 12 months with almost half of cloud users adopting this model. Platform-as-a-service remains in the early stages of adoption. The major cloud services providers include Microsoft, Google, IBM, VMware, Amazon, HP, Cisco, Rackspace and Telstra, all of whom enjoy a high brand recall in an increasingly crowded market segment. Predictions In addition to examining the current state of the market, the Frost & Sullivan study lists four predictions for the year ahead: 1. Enterprises will continue to be cautious about the type of workloads that they move to the cloud, performing rigorous risk-benefit analysis before doing so. Compute-as-a-service for test and development work, storage for the purposes of business continuity planning or disaster recovery, email and email filtering are some of the workloads expected to rapidly move to the cloud. Expect greater hesitation with custom applications, sensitive storage data and production environments. 2. Server virtualisation and network security will be the enablers that underpin investments in private clouds. 3. Spending on cloud will increase but in a measured manner. All IT decision makers will either maintain or increase their spending on cloud computing in the current fiscal year. Nevertheless, customers will continue to be cautious about the upfront cost savings from cloud computing due to concerns over hidden costs and downtime. 4. IT departments will continue to be the biggest influencers in cloud-related decisions but more CXOs will either influence the IT department or will get involved in decisions relating to cloud. Also, while some visionary IT managers see cloud as a means of freeing them from performing mundane IT administrative tasks, there is still inherent fear about the impact of cloud computing on IT employment. Arun Chandrasekaran, Research Director – ICT Practice, Frost & Sullivan, says, “There has been a significant increase in the use of cloud services in Australia in the past 12 months and all the indications are that this will continue. While a formal “cloud first” policy does not exist yet in most enterprises, the idea of a “cloud alternative” evaluation is increasingly common. We expect to see a number of trial deployments this year as companies dip their toes in the water and test non-mission critical applications and infrastructure.” Frost & Sullivan's State of Cloud Computing in Australia: 2011 forms part of the Frost & Sullivan Australian Cloud Computing Research program. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com on six continents. For further information, please contact: David Bass | Bass Public Relations Direct: 02 9922 6820 Mobile: 0416 017 194 david@basspr.com.au Frost & Sullivan: Australian Videoconferencing Market Reports Healthy 33% Revenue Growth in 2010 2011-05-15T23:32:00Z frost-amp-sullivan-australian-videoconferencing-market-reports-healthy-33-revenue-growth-in-2010 Sydney, 16 May 2011 - Government incentives and pent-up demand following the global financial crisis (GFC) helped the Australian video conferencing market to increase revenues by 33 per cent in 2010. The market, which is defined as including sales of equipment for immersive telepresence, video conferencing endpoints and video conferencing infrastructure, but excluding maintenance and communications revenuesis expected to more than triple by 2017, growing at an estimated combined annual growth rate of 19.1%. The findings are included in Frost & Sullivan's latest research report, the Australian Videoconferencing Market Report 2011. Government, banking and financial services, utilities and mining industries were the main vertical markets undertaking video conferencing deployments in 2010. Other areas of high demand included education, health care and professional services. The strongest segment of the market was room-based systems, otherwise known as video conferencing endpoints, which accounted for 66.7% of all video conferencing revenues in 2010. Growth in demand is being driven by the increasing quality of these mid-range solutions combined with gradually declining price points, and a shift in customer preferences from immersive telepresence to room-based systems. Video conferencing infrastructure also experienced a sharp increase in growth due to a rise in the number of video conferencing deployments. After 2009 being a year of delay, many businesses revived their video conferencing plans in 2010, creating demand for infrastructure to efficiently connect multiple parties in a conference. At the high end of the market, immersive telepresence solutions recorded growth of 3%. This has gone some way to redress the steep decline in demand experienced during the GFC. The report suggests that although this segment will not witness widespread uptake, it will continue to serve a niche where the business requirements of specific customers justify the investment. The players Cisco's strategy following its acquisition of Tandberg was closely monitored by customers and the market in general. While Cisco maintained a majority of the Tandberg customer base, Polycom capitalised on the uncertainty and grew its market share in Australia. Both Cisco and Polycom recorded strong revenue growth over the previous year and together they accounted for the vast majority of the overall video conferencing market share in Australia. Within the small-to-medium-business (SMB) category, LifeSize continues to be the most prominent vendor, reporting wins across the health and financial services vertical markets. A number of emerging vendors including Huawei and Vidyo are also beginning to generate interest in this market. However, the study cautions that while offering a huge base for video conferencing deployments, the SMB market remains a difficult segment in which to generate growth. High price sensitivity and a preference for free applications such as Skype present the main challenges for vendors in this area. Telstra, Dimension Data and Optus-Alphawest continued to be the dominant channel partners, accounting for the majority of wins in 2010. While Telstra and Optus-Alphawest bring their expertise as carriers to offer bundled solutions, Dimension Data enjoys an advantage as a systems integrator able to handle large scale and complex projects. As anticipated in last year's report, further channel partner consolidation occurred in 2011 with Telstra acquiring the key Tandberg channel, iVision. A traditionally strong Cisco channel, Telstra needed to quickly ramp up its Tandberg deployment capabilities following the Tandberg acquisition by Cisco. iVision addresses this gap and will enable Telstra to rapidly grow its expertise in Tandberg solutions. Audrey William, Research Director - ICT, Frost & Sullivan, says, “2010 was a return to form for Australia's video conferencing market. Growing business confidence saw the resurrection of a number of previously postponed projects along with an increase in demand for new deployments.” Frost & Sullivan's Australian Videoconferencing Report 2011 forms part of the Frost & Sullivan Australian Digital Media program. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available. About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 40 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com