Unified communications is picking up steam in Malaysia with an increase of 14 percent to US$47.5 million in the second half of 2012 compared to the earlier half.
Overall, the revenue in 2H12 Unified Communications & Collaboration (UC&C) market hit US$89.2 million, a 22.5% growth on a year-over-year basis, according to IDC’s Asia/Pacific Semi-annual Collaborations and Video Tracker, which captures the market share of major vendors in the region,
Enterprise telephony continues to play an integral part of the UC&C market, with 50.6 percent of total revenues in 2H12, followed by enterprise collaboration apps (29.5 percent), contact centre applications and equipment (12.9 percent) and enterprise videoconferencing solutions (6.9 percent).
While enterprise videoconferencing solutions has recorded a slim proportion in the market share, it is the fastest growing product category with 64.2 percent growth. Cisco and Polycom dominate with around 72 percent market share, a large proportion of this is room-based telepresence deployment by MNCs and large enterprise customers.
The increase of UC&C market in 2H12 is believed to have been accelerated by the growth of IT spending and investments in local businesses prior to the May 5 General Election.
Local businesses generally push their financing and resources to implement developments while the existing government is in place, to ensure they are familiar with the guidelines, as policies can change when a new government comes in.
In 2013, UC&C will continue to remain an area where companies are willing to invest for both internal and customer-related purposes, as well as working with external partners/suppliers to improve revenue and to lower operating costs.
“We see IP telephony deployment happening steadfastly in the country with fierce competition among vendors such as Cisco, Avaya, Alcatel-Lucent and NEC. Deployment of IP telephony on the enterprise network will continue to be a significant form of UC&C in Malaysia,” said Tan Hwee Xian, Market Analyst at IDC’s Asia/Pacific Communications Group.
“We also observe growing interest in the implementation of enterprise collaboration and videoconferencing solutions pushing down market from large scale enterprise-level solutions to the mid market segment. With widespread availability of UCaaS solutions arriving in the marketplace, we are expecting more UCaaS offerings which are Opex-friendly to appear in the market,” he added.
According to IDC’s Asia/Pacific Collaborations and Video 2013-2017 Forecast report, Malaysia UC&C market will be worth US$134.1 million by 2017, up from US$89.2 million today. Although there are signs of market growth slowing down in the traditional on-premise market in the region due to cloud and freemium app services, enterprise videoconferencing will continue to grow at a fast pace with rates hitting between 10 and 15 percent annually, driven by the increase demand in verticals like retail banking, healthcare establishments, oil & gas, government and educational institutions.
“We believe the UC&C industry will continue to grow in the country, with conversations being redefined and moving away from cost savings to business process transformation. This will also translate to increased opportunities for service providers (SP) and system integrators (SI) as this market will increasingly be services-led and will soon turn from nascent to mainstream over the forecast period,” said Tan.