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World Web Conferencing Hosted Services Market to Reach $2.85 Billion in 2015 Finds Frost & Sullivan - Moving Beyond Niche Status - A veritable explosion of Web 2.0 tools and escalating need for real-time collaboration continues to draw users to web conferencing
World Web Conferencing Hosted Services Market to Reach $2.85 Billion in 2015 Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2010/11/05 - Moving Beyond Niche Status - A veritable explosion of Web 2.0 tools and escalating need for real-time collaboration continues to draw users to web conferencing.

   
 
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The rising interest in cloud-based communications is further fueling growth in this market. As users look to accelerate team productivity and support a business model that fuels innovation with better and faster decision making, applications such as web conferencing are becoming a critical component of enterprise communications.

New analysis from Frost & Sullivan (conferencing.frost.com), World Web Conferencing Hosted Services Market, finds that the market reached $1.09 billion in 2009 in revenues, growing at the rate of 10.5 percent over 2008. Revenues are expected to reach $2.85 billion in 2015, with a projected revenue growth rate of 17.2 percent, supporting a widening user base.

If you are interested in more information on this study, please send an email to Jake Wengroff, Corporate Communications, at jake.wengroff[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.

"The dominant theme in 2010 among web conferencing vendors is focused on creating easier to use solutions at attractive price points to move the market beyond a niche status," says Frost & Sullivan Principal Analyst Roopam Jain. "The overall outlook for web conferencing hosted services is robust; IT is making web conferencing services an investment priority as part of a bigger bundle of collaborative applications for mainstream communications."

The market for web conferencing continues to morph and evolve with the rapid pace of new product development, pricing shifts, and consolidation. New cloud services that combine hosted email, groupware, and messaging with collaboration are starting to witness higher uptake as users increasingly evaluate collaboration as part of a bigger enterprise communications purchase. These collaboration bundles are likely to overshadow stand-alone sales of Web conferencing, as users try to optimize value by purchasing an end-to-end communications suite from a single vendor.

Despite the overall positive outlook, the market is not without its challenges. The slow economy and impact of declining price had resulted in lower-than-expected revenue growth for the web conferencing hosted services market in 2009. Pricing pressures continue to intensify, especially as vendors offer collaboration products at competitive prices, setting the stage for price-based competition.

The overall market for unified communications (UC) remains volatile, and organizations are adopting a wait-and-see approach before they standardize on a vendor solution.

In addition, difficulty in attaching a hard-dollar ROI to the benefits of web conferencing for organization-wide usage continues to hinder wider deployments. Confusion over the range of offerings available and multiplicity of pricing plans exist. Due to complexities involved in understanding UC and cloud-based services in general, evaluating the cost benefits associated with them is beyond the capabilities of several users.

Collaboration and information sharing are vital for cloud service vendors. As IT evaluates migration of critical communications such as email to the cloud, delivery models that provide core services from the cloud through hosted solutions will increasingly be combined with on-premise applications. Additionally, private clouds that offer many of the same benefits of public clouds, but are managed within the organization for better control and security will see greater prominence.

"Vendors must understand the key SMB requirements, particularly ease-of-use, simple pricing and ease-of-delivery to clearly communicate their value proposition to their target customers," concludes Jain. "SaaS web conferencing providers must build vertically-focused solutions that are specifically attuned to the requirements of SMB users."

World Web Conferencing Hosted Services Market is part of the Conferencing & Collaboration Growth Partnership Services program, which also includes research in the following markets: World Web Events Study and North American Web Conferencing Hosted Services Market. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

About Frost & Sullivan
Frost & Sullivan (frost.com), 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 over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.

World Web Conferencing Hosted Services Market / N7F6

 
 
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World Web Conferencing Hosted Services Market to Reach $2.85 Billion in 2015 Finds Frost & Sullivan

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