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Frost & Sullivan: Asia Pacific Enterprise Telephony Market Earns US$445.1 Million in Q1 2010

High-Performing IP Telephony Segment Injects Much Needed Momentum into the Market

Aug. 10, 2011 - PRLog -- Kuala Lumpur, Malaysia – Riding on a 6.0 percent rise in demand for IP telephony over Q1 ’09, the Asia Pacific enterprise telephony market is back on track after a slump in Q2 ’09. Increased spending on enterprise telephony by banking and financial institutions, universities, hotels, and transportation have halted the slide of the market and placed it back on the growth path.

New analysis from Frost & Sullivan, Asia Pacific Enterprise Telephony Market Q1 2010, finds that the market earned revenues of US$1.72 billion in 2009 and estimates this to reach US$2.57 billion in 2016.

Small- and medium-sized businesses (SMBs) have begun to show an active interest in enterprise telephony solutions, specifically in technologies that help them reduce the overall ownership cost and telecommunication bills.

“The market is poised to reverse the negative trends of the recent past, as customers have stated demanding unified communication (UC) solutions, specially video and web conferencing,” says Frost & Sullivan Industry Manager Shailendra Soni. “This is because the ability of high-end video conferencing solutions to act as a substitute for face-to-face meeting is helping enterprises lower travelling budgets and improve the productivity of the employees.”

Telephony vendors have shown resilience in staving off challenges such as uncertainty in decision making, long sales cycle and budget constraints. They created a case for their products by presenting return on investment (ROI) documents, marketing messages highlighting faster ROI and introducing financial schemes to hasten the adoption of IP telephony systems.

Vendors and channel partners also had to strategize for an overall erosion in prices, which reduced by 10 to 20 per cent due to high discounts offered by industry participants. As these price cuts, along with budget constraints, could squeeze their profit margins, they resorted to creating product bundles that appeal to a larger section of TDM customers, particularly the medium-sized businesses.

They are also battling the low availability of in-house resource to manage IP telephony and UC products by offering free or low-budget training and proactively offering solutions over the managed and hosted environment.

“Tier 2 vendors have to move from selling just ‘box’ solutions to offering convergence solution that includes user-based UC applications,” notes Soni. “Investments in channel training and the development of strong marketing collaterals that clearly illustrate rapid ROI are critical for successfully selling IP telephony solutions.”

If you are interested in more information on this study, please send an e-mail to Donna Jeremiah, Corporate Communications, at djeremiah@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country.

Asia Pacific Enterprise Telephony Market Q1 2010 is part of the Enterprise Communications Growth Partnership Services program, which also includes research in the following markets: Asia Pacific Enterprise Telephony Market CY 2009, Asia Pacific Unified Communications Market CY 2009, Asia Pacific Enterprise Telephony Tracker Q3 2009, and Asia Pacific Enterprise Telephony Tracker Q2 2009. 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, 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.

Asia Pacific Enterprise Telephony Market Q1 2010

Donna Jeremiah
Corporate Communications – Asia Pacific
P: +603 6204 5832
F: +603 6201 7402
E: djeremiah@frost.com

Carrie Low
Corporate Communications – Asia Pacific
P: +603 6204 5910
F: +603 6201 7402
E: carrie.low@frost.com


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Frost & Sullivan, the Growth Partnership Company, partners with clients to accelerate their growth. The company's research and consulting services empower clients to generate, evaluate, and implement effective growth strategies.

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Source:Frost & Sullivan
Location:United States
Industry:Technology, Telecom
Tags:Asia Pacific, Ip Telephony, Enterprise, SMB, Reduce Cost, Unified Communication, Video Conferencing, Web Conferencing
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