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Frost & Sullivan: Australia video conferencing market to witness strong growth despite weak economic conditions

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Frost & Sullivan: Australia video conferencing market to witness strong growth despite weak economic conditions PR Newswire SYDNEY,, June 6, 2012 - The video conferencing market grew 28.7% in 2011. The immense opportunities in end points and channels are driving vendors and channels to secure a share of the market. SYDNEY, June 6, 2012 /PRNewswire/ -- The total Australian video conferencing market, which includes services and product (video conferencing endpoints) grew 28.7% from 2010. Frost & Sullivan's latest report, Australian Video Conferencing Market Report, due for release in May 2012 combines end points, infrastructure and services. Audrey William, Head of Research, Australia and New Zealand, ICT said The Australia video conferencing market, including video conferencing end points, infrastructure and services, is expected to be worth over AUD700 million by 2018. Whilst there will be strong growth for endpoints, the services market is offering increasing opportunities for vendors and channels mainly in the areas of cloud-based video conferencing and managed services. "The Australian video conferencing market is expected to register a healthy growth of close to 18% over the forecast period. Given the current economic climate, with generally cautious IT spending, this healthy growth rate suggests that businesses still see video conferencing as an attractive option for reducing travel costs.
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Frost & Sullivan: Australia video conferencing
market to witness strong growth despite weak
economic conditions
PR Newswire
SYDNEY,, June 6, 2012
- The video conferencing market grew 28.7% in 2011. The immense
opportunities in end points and channels are driving vendors and
channels to secure a share of the market.
SYDNEY
,
June 6, 2012
/PRNewswire/ -- The total Australian video conferencing
market, which includes services and product (video conferencing endpoints)
grew 28.7% from 2010.
Frost & Sullivan's latest report,
Australian Video Conferencing Market Report,
due for release in May 2012
combines end points, infrastructure and services.
Audrey William, Head of Research,
Australia
and
New Zealand
, ICT said The
Australia
video conferencing market, including video conferencing end points,
infrastructure and services, is expected to be worth over AUD700 million by
2018. Whilst there will be strong growth for endpoints, the services market is
offering increasing opportunities for vendors and channels mainly in the areas
of cloud-based video conferencing and managed services.
"The Australian video conferencing market is expected to register a healthy
growth of close to 18% over the forecast period. Given the current economic
climate, with generally cautious IT spending, this healthy growth rate suggests
that businesses still see video conferencing as an attractive option for reducing
travel costs. The rapid increase in smart phones and tablets usage is also
expected to impact video conferencing adoption in the enterprise market, as
an increasing number of business users utilise these mobile devices for video
conferencing. The decline in price points for video conferencing solutions is
another contributor to the growth in the
Australia
market," says William.
The Australian video conferencing endpoints market (products only) was up
36.3% from the previous year. The main factors that contributed to the high
growth rate over the last two years were pent up demand from previous years
of cautious spending and continued demand for video based collaboration.
Cloud-based video conferencing (or video as a service) is beginning to gather
momentum in the market. Though at a very nascent stage of development,
demand for such solutions is expected to grow over the next few years driven
by the ability to reduce costs by minimising investment in video conferencing
infrastructure and as organisations move from owned infrastructure to
accessing services on an 'as-needed' basis said William.
Market participants
With a combined market share of over 95%, Cisco and Polycom dominated the
Australian video conferencing endpoints market in 2011. Both vendors
recorded strong growth in 2011 mainly due to a combination of robust demand
from major verticals and growing awareness of video as a collaboration tool.
However the market in
Australia
is expected to become more competitive with
the entry of players such as Huawei which, because of its attractive price
points, is expected to become more competitive in the Australian market over