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New business models and advances in cloud computing capabilities are driving adoption and expansion of the Asia-Pacific cloud video collaboration market, according to Frost & Sullivan.
Cloud video conferencing services grew a strong 43.1% in 2017, and the total video collaboration market is on track to grow at a CAGR of 11.3% over the next five years, the research firm predicts.
But while newer and agile cloud services are allowing providers to fuel the direction of next-generation video conferencing, a complete overhaul of business models will be required for video conferencing device vendors to match pace with evolving market trends.
“Cloud, mobility, and innovative use cases are set to drive new growth opportunities within the Asia-Pacific video collaboration market with cloud penetration rates to be around 30% by 2022,” Frost & Sullivan Research Manager Jesse Yu said.
“Vertically customized solutions and video analytics will become strong areas for differentiation and new growth opportunities.”
Yu recommends cloud vendors looking to gain a competitive advantage focus on product innovation to support compatibility with Skype for Business or Cisco Spark and offer a flexible approach to cloud services.
Providers should adopt agile business models that can target SMEs and mid-market customers, pursue collaborations with local telecoms operators on specific industry verticals and use cases and move to reduce bandwidth usage, complexity and costs to improve the user experience.
“Furthermore, players should explore different strategies to enter the market; for example, local channel partnerships, all-in-one UC/collaboration bundles, freemium deals, eCommerce, and free trials. This will enhance their customer base and reinforce the advantages of video conferencing,” Yu said.
