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.
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.
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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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SOURCE Frost & Sullivan