Going Visual Trends for Visual Collaboration in Latin America

Going VisualTrends for Visual Collaboration in Latin America

Rodrigo Lima, Research Analyst

ICTICT

March, 29th 2011

Today’s Presenters

Rodrigo Lima, Research Analyst

Frost & Sullivan

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Focus Points

• Technology Segmentation

• Trends, Challengers, Drives and Restrains

• Market Overview

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• Competitive Landscape

Technology Segmentation

Videoconferencing Market: Market Segmentation (Latin America), 2010

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Source: Frost & Sullivan

Market Trends

• Interoperability as a determining factor

• Video as a service

• Telepresence is likely to gain importance

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• HD equipment gradually becoming available for

everybody

• Customers’ general confusion regarding

available offerings

• Growing demand for desktop video

Major Challenges

• To achieve the expected video quality with less bandwidth consumption

• Companies find it tough to calculate the ROI, as business models are recently being created by vendors

Vendors’ portfolios continue to remain the same

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• Vendors’ portfolios continue to remain the same from the customers’ point of view

• Vendors will be forced to migrate to scalable video coding (SVC), as it offers undisputable advantages to end users

• Development of new businesses model, such as video as a service (VaaS)

Major Drivers

Increased interest of

workers for video solutions

Deployment of new and more

affordable solutions to

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Reduction of travel costs and greater speed of communication

with remote teams

Video as part of unified

communications

solutions to SMBs

Decreasing prices of high-

definition equipment make

video more accessible

Source: Frost & Sullivan.

Major Restrains

High price of solutions, and

lack of a defined business model,

postpones

Vendors haven’t yet developed cost-effective and attractive solutions for

SMBs

Not reliable projections of ROI prevent

mass adoption of video

Poor infrastructure in most of countries

in the CALA region prevent

growth

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postpones purchase

Rapid changes in product and strategies of the vendor

confuse customers

Total Market Segment and Forecast

• The videoconferencing endpoint market is valued at $64.7 million USD and was divided among the following segments as shown below.

4.7%

22.2%

$ 257.9

CAGR: 21.8%

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Source: Frost & Sullivan

73.1%

4.7%

Conference Room Executive Desktop

Telepresence

$ 64.7

2010 2017

Key Regions

• Brazil and Mexico are the most important countries in the region

34.5%

29.2%

63.7%

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Source: Frost & Sullivan

13.4%11.5% 11.5%

TT. Videoconferencing Endpoints

Brazil Mexico Southern Cone Andean Countries CaCar

Competitive Landscape

RADVISION acquired specific assets from Aethra. RADVISION is likely to face the challenge of competing with

the largest endpoints participants

Cisco spent 2010 integrating expertise and products from

Tandberg, and currently is able to offer complete video solutions.

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Source: Frost & Sullivan

Avaya is the newest player in video market

At the end of 2010, HP has announced the launch of new solutions such as

desktops solutions, conferencing room systems and MCUs, through a

partnership with VIDYO

With the acquisition by Logitech, the company is trying to position itself

closer to Tandberg/Cisco and Polycom.

Conclusion/Key Take-Aways

• The spectrum of videoconferencing services is expanding in Latin

America

• Videoconferencing companies should focus on the basics in their

messages to customers

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• Improve marketing and positioning of the solutions

• Partnerships, Alliances, and Interoperability of solutions

• Services is coming ahead

Next Steps

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For Additional Information

Tatiana Brull

Corporate Communications LA

Marketing Communications Executive (+55 ) 11 3065-8445

[email protected]

Cecilia Baruel

Sales Director

Brazil

(+55) 11 [email protected]

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Rodrigo Lima

Latin America Research Analyst

ICT

(+55) 11 3065-8426

[email protected]

Juan Gonzalez

Latin America Industry Manager

ICT

(+54) 11 4777-1554

[email protected]