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How Conferencing Vendors are Remaining Relevant amid Market Pressure : Need for Complementary Services Drives Mergers and Acquisitions

  • April 2015
  • -
  • Frost & Sullivan
  • -
  • 17 pages

Summary

Table of Contents

The conferencing market is at a declining stage and is characterized by dipping price points and declining demand for stand-alone conferencing. There is a growing need for integrated solutions from the enterprise communication architecture and service standpoint. This study explores the growth opportunities available for conferencing vendors by analyzing a list of key mergers and acquisitions that took place in 2014. Further, it highlights the impact of these acquisitions on the UC product and service market in terms of customer demand, competition, and pricing.

Executive Summary

While audio conferencing is the most essential service offering in the conferencing bundle, the demand for stand-alone audio conferencing is declining as enterprises prefer integrated solutions from their communication architecture and services. To cater to such unified solution requirements, vendors are increasingly looking to package complementary collaboration services, such as Web and video conferencing, Webcasts, team workspaces, and other unified communication (UC) applications, such as telephony, voice mail, instant messaging, and presence. Solution developers have the option of either developing the technology in-house or taking the acquisition/partnership route to offer such integrated solutions and tap adjacent opportunities. A notable number of vendors have recently opted for the latter as it enhances their ability to go-to-market at a much faster pace when compared to the lead time for platform development from scratch.
This study highlights a number of key acquisitions that took place in 2014 in light of providing users with tightly blended solutions. It aims to analyze the objective and the impact of these acquisitions on UC product and service markets with regard to factors such as customer demand, competition, and pricing.

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Unified Communications

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