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Consumer Demand for OPEX-based Solutions Creates New Growth Opportunities for Cloud IP and UC&C Services in Latin America


News provided by

Frost & Sullivan

24 May, 2016, 15:25 GMT

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Service providers expand customer base by offering a solution for every type of customer need, finds Frost & Sullivan 

SAO PAULO, May 24, 2016 /PRNewswire/ -- Despite the relative nascence of the Latin American cloud Internet protocol (IP) telephony and Unified Communications and Collaboration (UC&C) services market, service providers (SPs) have rolled out offerings in almost every country in the region over the last 18 months. This has heated up the competition and set the stage for brisk growth in 2016, as organizations are now more aware of the productivity benefits of these services.

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Cloud IP Telephony and UC&C Services Market in Latin America

New analysis from Frost & Sullivan, Cloud IP Telephony and UC&C Services Market in Latin America (http://www.frost.com/sublib/display-report.do?id=K06B-01-00-00-00&src=PR), finds that the market earned revenues of $165.1 million in 2015 and estimates this to reach $799.0 million in 2021, at a compound annual growth rate of 30.1 percent. In terms of users, Mexico leads with 30.4 percent of the total market. Brazil is a distant second at 19.6 percent, but is expected to significantly increase its share in the long term.

For complimentary access to more information on this research, please visit: http://corpcom.frost.com/forms/LA_PR_FValente_K06B_12April16

"One of the main reasons for the rapid growth of the cloud IP market is consumers' eagerness to shift to an operational expenditure model, following the economic downturn in 2015," said Frost & Sullivan Digital Transformation Industry Analyst Sebastian Menutti. "Cloud IP and UC&C services allow users to pay per month, per user instead of making heavy capital investments."

Technology vendors such as Avaya and Broadsoft have presented a more flexible revenue-sharing option to Latin American service providers, wherein the latter makes a much reduced initial investment in infrastructure. Their payments to the vendor will eventually increase in line with demand.

The global market has been experiencing hectic activity in terms of applications launches, with Cisco and Microsoft releasing the paid version of Cisco Spark and the E-5 bundle of Microsoft Office 365, respectively. However, their introduction in Latin America will be delayed by 12 to 18 months, as the vendors have to negotiate agreements with public switched telephone network (PSTN) providers in each country.

Furthermore, the telecommunications infrastructure in Latin America is still insufficient to cater to the escalating demand for cloud IP and UC&C services. Organizations' skepticism regarding the quality of service, security concerns and the high total cost of ownership (TCO) are hindering the widespread adoption of these services in the region.

Service providers have been striving to improve their products in response to customers' apprehensions, and their efforts are paying off, as is evident from the enthusiastic acceptance of these services.

"Different solutions from different types of providers, including global carrier, local carriers and integrators, will prove most effective for diverse customer segments," noted Menutti. "While this can result in some level of market fragmentation, the incumbent and national carriers will continue to dominate the market."

Cloud IP Telephony and UC&C Services Market in Latin America is part of the Enterprise Communications (http://ww2.frost.com/research/industry/information-communications-technologies/enterprise-communications) Growth Partnership Service program. Frost & Sullivan's related studies include: Connected Work—Enabling Technologies for the Future Workplace, Singapore Data Center Services Market, Singapore ICT Market Overview, North American VoIP Access and SIP Trunking Services Market, and European Hosted IP Telephony and UCC Services Market. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.

Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

  • The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
  • The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

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Cloud IP Telephony and UC&C Services Market in Latin America
K06B-64

Contact:

Francesca Valente
Corporate Communications – Latin America
P: +54 11 4777 5300
F: +54 11 4777 5300
E: francesca.valente@frost.com

http://www.frost.com

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