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2012 NORTH AMERICAN CXO INVESTMENT PLANS FOR

COMMUNICATIONS AND COLLABORATION INFRASTRUCTURE

AND CONNECTIVITY

A PERSPECTIVE ON UCC INFRASTRUCTURE AND CONNECTIVITY

EVOLUTION

December 2012

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Research Team

Rolando BarreraIndustry Analyst/Project Manager, CustomerResearch

210.247.2465

[email protected]

Lead Analyst Contributing Analyst

Research Director

Tonya Fowler Global Director, Customer Research

210.247.2413

[email protected]

and Strategic Review Committee Leader Contributing Analyst

Elka PopovaNorth America Program Director, Unified Communications & Collaboration, ICT

416-792-0160

[email protected]

Michael BrandenburgIndustry Analyst, Information & Computer Technologies

(920) 403-0010

[email protected]

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Contents

Section Slide Numbers

Research Objectives and Methods 7

Executive Summary and Implications 11

Corporate Demographic Profile 18

Business and Technology Challenges 21

• Business and IT Operational Challenges 22

• Most Important Technology Challenges for Next Year 23

Network Interfaces and Edge Devices 24

• Network Interfaces Connected to Public Switched Telephone Network

25

• Supportive Devices of Network Interfaces 27

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Contents (continued)


UCC Infrastructure Evolution 28

• Importance of Unified Communications Strategy by Industry 29

• Status of Deploying Unified Communications Solutions: Year-Over-Year Comparison

30

• Status of Deploying UCC Solutions by Company Size 31

• Status of Deploying UCC Solutions by Industry 32

• Status of Deploying Virtualized Communications and Collaboration by Company Size

33

• Status of Deploying Virtualized Communications and Collaboration by Industry

34

• Status of Integrating Unified Communications and Collaboration by Company Size

35

• Status of Integrating Unified Communications and Collabroation by Industry

36

• Communications Infrastructure: A Present and Future Perspective 37

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Budget 38

• Percent of Budget Allocated to Communications and Collaboration 39

• Future Changes in Enterprise Communications and Collaboration Budget

40

• Percent of Budget Allocated to UCC Maintenance and Support Costs by Industry

41

• Percent of Budget Allocated to Communications and Collaboration Technologies by Industry

42

• Percent of Budget Allocated to Communications and Collaboration Technologies by Company Size

43

• Percent of Budget Allocated to Communications and Collaboration New Technologies by Industry

44

• Percent of Budget Allocated to Communications and Collaboration New Technologies by Company Size

45

• Percent of Budget Allocated to UCC Maintenance and Support Costs by Company Size

46

• Degree of Influence on Budget 47

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Appendices 49

The Frost & Sullivan Story 51

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RESEARCH OBJECTIVES AND METHODS

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Source: Frost & Sullivan analysis.

Research Objectives

The primary objective of this research is to assess North American C-level executives’ attitudes and strategic plans regarding current and future plans for types of enterprise communications architectures. Supporting this primary objective, this research will also:

• Identity the business, IT operational, and technology challenges facing executives

• Determine the type of network interfaces and edge devices used in customer organizations

• Determine the importance of UCC strategies and the status of UCC implementation in customer organizations

• Identity the impact of virtualization on the UCC infrastructure

• Assess levels of implementation and identify perceived advantages and disadvantages of various delivery models

• Understand the effect of the general economic environment on communications and collaboration technologies

• Determine executive decision makers’ intentions with regard to IT and communications budgets, implementation, and use of communications and collaboration tools and services, enterprise architectures, and communications and collaboration delivery models

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Methods

Methodology

A Web-based survey methodology was utilized. The data were collected in August—September 2012.

Sample

Surveyed 263 North America C-level executives within the following industries: healthcare, financial services, hospitality, manufacturing, IT/telecom, retail, and public sector.

Reporting Notes

Due to rounding, percentages in charts and tables may not equal 100 percent.

Definitions

Frost & Sullivan defines communications and collaboration tools as any stand-alone or integrated product or service used for communications and collaboration, including IP PBX (Internet Protocol private branch exchange), videoconferencing, web conferencing, voice or audio conferencing, and unified messaging (integrated voice and e-mail, and possibly fax). A unified communications solution is an integrated set of voice, data and video communications, all of which leverage personal computer (PC-) and telephony-based presence information. A unified communications application is presented to end users as a unified client or interface that enables users to “click to communicate”–click to call, instant message, or join a group of people in a conference call. Furthermore, the acronym UCC stands for unified communications and collaboration.

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Methods (continued)

Research History:

Frost & Sullivan has been tracking CXO and other decision makers’ opinions on the communications and collaboration products and services markets since 2011. Where applicable, this research compares data trends for year-over-year analysis. Of notable mention, not all year-over-year data are comparable. This year, an additional industry vertical (i.e., manufacturing) was added to the list of industries surveyed. In addition, sample sizes were increased as depicted in the chart below.

Sample Sizes of Past and Current Research: North America, 2012

2011 2012

Healthcare n=35 n=43

Financial services n=38 n=36

Hospitality n=26 n=29

IT/Telecom n=38 n=43

Retail n=35 n=36

Public sector n=33 n=35

Manufacturing -- n=41

Total sample n=205 n=263

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EXECUTIVE SUMMARY AND IMPLICATIONS

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Executive Summary

Business and Technology Challenges

Rapid technology evolution and the proliferation of UCC tools are increasing the cost and complexity of deploying, managing and upgrading the enterprise information and communications (ICT) infrastructure.

Most businesses perceive their ICT infrastructure and IT operations as relatively ineffective in enabling the organization to pursue broader business objectives.

Less than one-third of respondents believe that their IT and business strategies are well aligned; only 28 percent believe that IT is able to effectively meet new business needs; a mere 20 percent claim that IT staff can effectively focus on more strategic tasks.

Opportunities are available for UCC vendors and service providers to help consolidate and streamline customer ICT infrastructures and improve IT operational efficiencies and thus help customer organizations gain a competitive advantage.

Among specific technology challenges, mobility and social media technologies present the biggest concerns among CXOs and other decision makers. Businesses must address the influx of consumer mobile devices and the growing use of consumer tools in the enterprise (known as the “consumerization of IT”), and the related security and control issues that this trend poses to IT staff.

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Executive Summary (continued)

Getting Connected

The network interfaces businesses use to connect to the public switched telephone network (PSTN) are a vital link to customers, partners, and employees. Given the mission-critical role that voice traffic plays in most organizations, adoption of a particular network interface requires a certain level of trust in it. As such, it is not surprising that digital voice lines, such as T1/E1 circuits, still comprise the majority of network interfaces used, with 54 percent of respondents utilizing this mature and proven technology.

However, 37 percent of the participants have adopted Voice over Internet Protocol (VoIP) access and Session Initiation Protocol (SIP) trunking services for their communications platforms, suggesting a developing trust in IP-based technologies for voice communications. The largest usage of VoIP/SIP solutions, however, still appears to be in the early-adopter industries, such as healthcare and IT/telecom.

The venerable analog voice line trails both digital and VoIP/SIP trunking solutions, with less than a quarter of participants still utilizing them within their organizations.

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Making the Connection

The devices that businesses deploy to support their network interfaces bridge the gap between communications platform and services. These edge devices can be a clue to both the communications platforms and types of services being deployed.

Based on survey responses, standalone media gateways fare the worst in nearly every type of connection, suggesting that businesses favor multi-function devices at the network edge. Likewise, most service providers offer businesses bundled data and voice services. For unified services, integrated access devices that offer both data routing and voice traffic management in a single device are the most common among respondents.

Narrowing on users of VoIP access or SIP trunking services, a number of clear patterns emerge. First, integrated devices are the most commonly used for IP-based services, with 62 percent of participants using either an integrated media gateway or integrated access device with their VoIP/SIP service.

Finally, the use of enterprise session border controllers (E-SBCs) among participants is low, with only 11 percent of those surveyed using E-SBCs within their environment. This lack of adoption suggests that the interoperability concerns associated with SIP might be overstated, particularly considering that almost a quarter of the participants who use these services are forgoing any form of device and directly interfacing VoIP and SIP trunking services with their communications platform.

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Going Virtual

Server virtualization of unified communications and collaboration tools is seeing widespread adoption throughout the businesses surveyed, with 60 percent of participants at some stage of planning or deploying virtualized UCC platforms. However, virtualization among most respondents is still a work in progress with only six percent of businesses reporting actual deployments, 13 percent currently deploying, and the remaining 43 percent in the planning stages.

Among participants, the interest level and progress in virtualized communications steers heavily towards mid-sized (100 to 499 employees) and large enterprises (greater than 500 employees). This is not surprising as mid- to large-sized businesses require communications and collaboration solutions at a higher scale than small businesses, and in turn can derive a greater return on investment through virtualization. Likewise, the mid-sized and large enterprises are more likely to have a significant internal IT resources and skill sets to leverage, whereas small businesses have to bring in outside resources to initialize virtualized communications projects.

Participants also affirm that confidence in virtualization technologies has moved these technologies in the mainstream on the adoption curve. While the traditionally early adopter IT/telecom sector leads in virtualized communications deployments, the more conservative retail and manufacturing sectors are close behind.

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Application Integration and Infrastructure Evolution

Presently, a complex communications infrastructure reigns, as roughly half of organizations have multiple products from multiple vendors. However, over the next couple of years, organizations are planning to simplify their communications infrastructure and migrate to single-vendor solutions or tightly integrated multi-vendor environments.

Budgets

The majority of organizations are expecting their CC budgets to remain the same within the next two years and beyond. In the short term (next 12 months), there may be increased budget allocations, primarily due to anticipated company growth.

Currently, businesses are spending as much on maintenance and support of existing solutions as they are on new technologies and solutions. This situation creates an opportunity for vendors to offer hosted or cloud-based services as an alternative to on-premises UC solutions. User-based pricing models have the potential to reduce CAPEX costs and offer a more compelling return on investment (ROI) for some businesses.

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Executive Summary: CEO Perspective

2

VoIP access and SIP trunking services are gaining acceptance within businesses of all sizes.

3

Digital voice lines still hold the lion’s share of connections, with IP-based services most prevalent in early-adopter industries.

4

Virtualization of communications platforms is already taking place, but it is still mostly a work-in-progress.

5

Complex, multi-vendor platforms exist today, but CXOs expect simplified single-vendor or tightly integrated platforms in the future.

1

Enterprise IT is facing growing operational and technology challenges, which require a new approach to infrastructure and services.

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CORPORATE DEMOGRAPHIC PROFILE

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51%

6%13% 11% 9% 9%

1%

37%

20%

11% 11% 10% 9%2%

Chief Executive Officer(CEO)/Chairman/President

Vice President / Manager ofInformation Technology or

Telecom

Chief Financial Officer(CFO)

Chief Operations Officers(COO)

Chief Information Officer(CIO)

Chief Technology Officer(CTO)

Chief Marketing Officer(CMO)

Titles of Respondents: North America, 2011-2012

2011 2012

Corporate Demographic Profile

79%

21%

80%

20%

USA Canada

Countries: North America, 2011-2012

2011 2012

Note: Manufacturing was added as an additional industry vertical for 2012Base: All respondents (2011 n=205) (n=263).

17%19% 19%

17% 16%

13%

16% 16% 16%14% 14% 13%

11%

Healthcare IT/Telecom Manufacturing FinancialServices

Retail Public Sector Hospitality

Industries: North America, 2011-2012

2011 2012

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Corporate Demographic Profile (continued)

Base: All respondents (2011 n=205) (n=263).

48%

6%12% 12% 14%

3% 5%

52%

8% 7% 6%13%

3%

11%

Fewer than100

100-249 250-499 500-999 1,000-4,999 5,000-9,999 10,000 ormore

Number of Employees: North America, 2011-2012

2011 2012

56%

16%8%

12%8%

64%

7% 6% 6%

16%

Less than 50 millionUS$

50 - 99.9 million US$ 100 - 249.9 millionUS$

250 - 449.9 millionUS$

450 million US$ ormore

Revenue in 2010-2011: North America, 2011-2012

2011 2012

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BUSINESS AND TECHNOLOGY CHALLENGES

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Business and IT Operational Challenges

Base: All respondents (n=263). Q56: Please rate your agreement with the following statements – using a scale from 1-7, where a 1 represents strongly disagree and a 7 represents strongly agree.

46%

43%

32%

31%

31%

30%

28%

26%

21%

20%

16%

12%

ICT infrastructure allows to work more effectively

ICT infrastructure helps to deliver a higher level of service

We are able to make effective technology investments

Our IT and business strategies are well aligned

We are adequately prepared for outages and disasters

ICT infrastructure reduces operation costs in my organization

We are able to make timely technology investments

We are able to effectively meet new business needs

We are unconcerned about ability to invest in IT in the next 12 months

Our IT staff is able to effectively work on more strategic projects

New regulatory requirements are lowering our IT costs up

Supporting new business needs is lowering our costs

IT and Communications Beliefs: Strongly/Somewhat AgreeNorth America, 2012

The majority of businesses perceive their infrastructure and IT operations as relatively inefficient and unable to fully address broader business objectives. They appear most concerned about their ability to support new business needs, respond to new regulatory requirements, and allow IT staff to focus on more strategic projects.

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Most Important Technology Challenges for Next Year

Implementing a mobile strategy and leveraging social media in the enterprise and with customers are top of mind. Providers who can effectively and economically deliver business-grade mobility and social media integrations can gain significant ground among customers.

Note: the Importance scale was from 1-”Not important at all” to 7-”Very important. “Top two box” represents “6” and “7” rankings.

Base: All respondents (n=263).Q55: Please rate how important the following challenges are to your organization over the next 12 months?

29%33%

27%24%

25%

4.44 4.40 4.32 4.30 4.14

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

0%

10%

20%

30%

40%

50%

60%

Devising andimplementing amobile strategy

Leveraging socialmedia in the

enterprise and withour customers

Supporting anincreasingly virtual

workforce

Managing the trendtoward the

consumerization of IT

Managing the impactof Big Data

Most Important Challenges for the Next Year: North America, 2012

Top two box Mean

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NETWORK INTERFACES AND EDGE DEVICES

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Network Interfaces Connected to Public Switched Telephone Network

18%

24%

37%

54%

Don't know

Analog lines

VoIP access/SIP trunks

Digital voice lines

Network Interfaces Connected to Public Switched Telephone Network (PSTN) North America, 2012

Digital voice lines are the most widely used network interfaces to connect a company platform to the public switched telephone network (PSTN).

Base: All respondents (n=263).Q8: Which of the following network interfaces connect your company’s communications platforms to the public switched telephone network (PSTN)? (Multiple response.)

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Network Interfaces Connected to Public Switched Telephone Network by Industry

Base: All respondents (2012, n=263).Q8: Which of the following network interfaces connect your company’s communications platforms to the public switched telephone network (PSTN)? (Multiple response.)

30%

58%

40%

17%

42%

25%28%

55%

28%30%

49% 51%

31%

42%

28%

11%

66%

46%

22%

68%

39%

Analog lines Digital voice lines, such as T1 / E1 lineswith primary rate interface (PRI) / basic

rate interface (BRI)

VoIP access / SIP trunks

Network Interfaces Connected to Public Switched Telephone network: By Industry: North America, 2012

Healthcare Financial services Hospitality IT/telecom Retail Public sector Manufacturing

The type of network interfaces used by respondents align with historical adoption trends. Healthcare and IT/telecom have been among the top industries to embrace IP-based communications, while financial services have been more conservative in their migration to new technologies.

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Supportive Devices of Network Interfaces

Among digital voice lines users

Among VoIP access/SIP trunks users

Among analog lines users

Standalone media gateways for TDM/IP conversion 20% 13% 23%

Integrated media gateways, built into another product 30% 40% 33%

Integrated access device 26% 22% 16%

Direct connection to communications platforms 23% 24% 27%

Session border controller -- 11% --

Don’t know 27% 22% 34%

Integrated devices are a popular choice for deploying all forms of voice services. Single popular standalone media gateways are the least used product across nearly all network interfaces.

Base: Filtered respondents (Digital voice lines user, n143, VoIP access/SIP trunks user, n=98, analog users, n=64). Q9: Which of the following devices are deployed to support the PSTN interface?Q10: Which of the following devices are deployed to support the T1/E1/PRI interface?Q11: Which of the following devices are deployed to support the VoIP Access/SIP trunk interface?

Supportive Devices: North America, 2012

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UCC INFRASTRUCTURE EVOLUTION

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Importance of Unified Communications Strategy by Industry

3.77

4.26

3.95

3.93

3.91

3.49

3.46

3.18

Total Sample

IT/Telecom

Manufacturing

Healthcare

Public sector

Financial services

Hospitality

Retail

Importance of Unified Communications Strategy by Industry: Mean Scores North America, 2012

As would be expected, the importance of unified communications strategy is highest in the IT/Telecom industry, while the retail sector puts the least “stock” in its importance.

Base: All respondents (n=263). Q12: Please rate how much focus your organization puts to a unified communication strategy?

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Status of Deploying Unified Communications Solutions: Year-Over-Year Comparison

Current deployments and plans to deploy UCC solutions are similar to last year, as the largest proportion of respondents have already deployed UCC or are in process. Yet, there remains much opportunity for future unified communications solutions deployment, even though roughly one quarter have no plans to do so.

Base: All respondents (2011, n=205) (2012, n=263) .Q13: What is the status of deploying a unified communication solution in your organization?

20% 16%

20%16%

18%

20%

9%14%

23% 25%

10% 9%

2011 2012

Status of Deploying Unified Communications: North America, 2011-2012

Don't know

Not planning to deploy withinthe next 3 years

Planning to deploy within thenext 2-3 years

Considering it within the next12 months

Currently deploying

Have already deployed

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Status of Deploying UCC Solutions by Company Size

Future consideration of UCC solutions does not vary significantly by organization size. Yet, deployment is currently occurring among larger organizations. Smaller-sized organizations are more hesitant, likely due to budget constraints and/or lesser requirements for advanced CC tools.

Base: All respondents (n=263).Q13: What is the status of deploying a unified communication solution in your organization?

9%18%

24%12%

13%

22%20%

21%

20%

9%

21%

18%39%

21%

9%

10% 8% 7%

Fewer than 100 employees 100-499 employees 500 employees and over

Status of Deploying Unified Communications by Company Size North America, 2012

Don't know




Currently deploying


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Status of Deploying UCC Solutions by Industry

Status of deployment coincides with importance of strategy. A large proportion of financial services firms are not planning to deploy UCC within the next three years, while manufacturing is mostly considering it within the next 12 months. Notably, the public sector has mostly already deployed or is currently deploying, despite not ranking their UCC strategy high in importance.

Base: All respondents ( n=263).Q13: What is the status of deploying a unified communication solution in your organization?

16% 14%7%

23%

8%

29%

10%

16%11%

10%

16%

11%

29%

15%

14%

11% 28%

19%

22%

11%

34%

14%22%

17%

12%

11%

6%15%

30% 36% 31%23%

31%

14% 22%

9% 6% 7% 7%17%

11%5%

Healthcare Financialservices

Hospitality IT / Telecom Retail Public sector Manufacturing

Status of Deploying Unified Communications by IndustryNorth America, 2012

Don't know

Not planning to deploywithin the next 3 years

Planning to deploywithin the next 2-3yearsConsidering it within thenext 12 months

Currently deploying


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Status of Deploying Virtualized Communications and Collaboration by Company SizeSimilar to the case of UCC solutions, smaller businesses are less focused on deploying virtualized communications and collaboration. Larger organizations, typically with multiple distributed sites, see the greatest benefits in consolidating their communications infrastructure.

Base: All respondents ( n=263).Q14. What is the status of deploying in your organization virtualized communications and collaboration applications? (That is when communications and collaboration applications are virtualized and running on virtual machines or virtual appliances within your own network).

6% 6% 3%8%

13% 11%10%

17%

30%23% 33%

39%

11%

7%

21%

14%27%41%

18%8%

14% 13% 15% 14%

Total Sample Fewer than 100employees

100-499 employees 500 employees andover

Status of Deploying Virtualized Communications and Collaboration by Company Size: North America, 2012

Don't know




Currently deploying


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Status of Deploying Virtualized Communications and Collaboration by Industry

Compared to other surveyed industries, deployment of virtualized UCC is occurring least often within the hospitality sector.

Note: Proportions less than five not shown numerically in chartBase: All respondents ( n=263).Q14. What is the status of deploying in your organization virtualized communications and collaboration applications? (That is when communications and collaboration applications are virtualized and running on virtual machines or virtual appliances within your own network).

5% 6% 9% 8% 7%

16% 14%19%

8%11%

15%

21% 25%

31%

35%

28%43% 27%

14% 8% 21%

5%

6%

9%17%

30%31%

31%23%

31%

20% 22%

14% 17%10% 9%

19% 14% 12%



Status of Deploying Virtualized Communications by IndustryNorth America, 2012

Don't know



Currently deploying


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8% 6% 5%13%

11%6%

15%

17%

23%

22%

26%

23%13%

6%

23%18%

33%

47%

18%18%

13% 14% 13% 10%

Total Sample Fewer than 100employees

100-499 employees 500 employees andover

Status of Integrating Unified Communications and Collaboration into Business Process Applications by Company Size: North America, 2012

Don't know




Currently deploying


Status of Integrating Unified Communications and Collaboration by Company SizeThe smaller the company the least likely they are to integrate UCC into their business process applications. The cost and complexity of the process along with perceived lesser benefits of the integrated solution could account for this trend.

Base: All respondents ( n=263).Q15. What is the status of integrating unified communications and collaboration (UCC) capabilities into business process applications such as CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), HR (Human Resources), etc.?

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Status of Integrating Unified Communications and Collaboration by Industry

Integration of UCC is either part of long-term plans or not planned at all. Recent or current deployments are very limited, although more prevalent among the manufacturing and public sector industries.

Note: Proportions less than five not shown numerically in chartBase: All respondents (n=263).Q15. What is the status of integrating unified communications and collaboration (UCC) capabilities into business process applications such as CRM (Customer Relationship Management), ERP (Enterprise Resource Planning), HR (Human Resources), etc.?

5% 8% 7% 12%6% 6%

12%

16% 8%9%

6%

20% 12%

26%

17% 28%

30%

19%

14%24%

9%

6%

14%

12%

6%

23%20%

30%

47%

41%28%

36%

31% 22%

14% 14%7% 9%

28%

6% 10%



Status of Integrating Unified Communications and Collaboration into Business Process Applications by Industry

North America, 2012

Don't know



Currently deploying


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Communications Infrastructure: A Present and Future PerspectivePresently, a more complex communications infrastructure reigns, as roughly half of organizations have multiple products from multiple vendors. However, over the next couple of years, organizations are planning to simplify their communications infrastructure and migrate to either end-to-end single vendor solutions or tightly integrated multi-vendor solutions.

Base: All respondents (n=263). Q16: How would you describe your communications infrastructure today (from a communications software point of view)?Q17. How would you describe your communications infrastructure in 24 months (from a communications software point of view)?

49%

24%

20%

37%

31%40%

Present: 2012 Two years from now: 2014

Communications Infrastructure Perspective: North America, 2012

End-to-end single-vendor solution

Tightly integrated multi-vendor solutions

Multiple products from multiple vendorsthat are not integrated

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BUDGET

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Percent of Budget Allocated to Communications and Collaboration

12.0%11.1% 11.0%

7.0%

5.0% 5.0%

Communications and collaborationtechnologies

New technologies and services suchas unified communications and

collaboration applications and services

Maintenance and support costs fortechnologies and services such as

unified communications andcollaboration applications and

services.

Percent of Budget Allocated to Communications and Collaboration—Central Tendency Statistics: North America, 2012

Mean percents Median percents

Businesses are currently spending as much on maintenance and support of existing solutions as they are on new technologies and solutions. There is an opportunity for vendors to provide services that relieve the burden for in-house IT staff and reduce some of these costs.

Note: The median is the numerical value separating the higher half from the lower half. It is less influenced by outliers, compared to a mean/average.

Base: All respondents (n=263).Q46: Approximately what percent of your company’s total expenditure is allocated to communications and collaboration technologies? Q47. Approximately what percent of your communications budget is allocated towards new technologies and services such as unified communications and collaboration applications and services? Q48. Approximately what percent of your communications budget is allocated towards maintenance and support costs for technologies and services such as unified communications and collaboration applications and services

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Future Changes in the Enterprise Communications and Collaboration Budget

The majority of organizations are expecting their UCC budgets to remain the same within the next two years and beyond. In the short term (next 12 months), there may be increased budget allocations, primarily due to anticipated company growth.

Base: All respondents (n=263). Q53. How do you expect your organization’s budget for enterprise communications and collaboration to change over the following time periods?

5%

6%

10%

60%

65%

55%

35%

29%

36%

Next 12months

Next 13-24months

Beyond 24months

Future Changes in Enterprise Communications and Collaboration Budget: North America, 2011-2012

Decrease Stay the Same Increase

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Percent of Budget Allocated to UCC Maintenance and Support Costs by Industry

12.3%

8.8%

11.3%12.0%

7.4%

11.1%

13.5%

10.0%

3.5%

7.5%

10.0%

5.0% 5.0%

10.0%



Percent of Budget Allocated to Communications and Collaboration Maintenance and Support Costs by Industry—Central Tendency

Statistics: North America, 2012


The retail and financial services allocate the lowest percent of budget towards collaboration maintenance and support costs.


Base: All respondents (n=263).Q48. Approximately what percent of your communications budget is allocated towards maintenance and support costs for technologies and services such as unified communications and collaboration applications and services

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Percent of Budget Allocated to Communications and Collaboration Technologies by Industry

11.5% 11.8%

13.8%

17.5%

13.4%

7.8%9.5%

6.0%

8.0%

5.0%

15.0%

10.0% 9.5%

5.0%



Percent of Budget Allocated to Communications and Collaboration Technologies by Industry—Central Tendency Statistics

North America, 2012


As would be expected, the IT/Telecom industry allocates the highest percent of budget to communications and collaboration technologies.


Base: All respondents (n=263).Q46: Approximately what percent of your company’s total expenditure is allocated to communications and collaboration technologies?

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Percent of Budget Allocated to Communications and Collaboration Technologies by Company Size

11.6% 11.9%12.7%

6.5% 6.0%

10.0%

Fewer than 100 employees 100-499 employees 500 or more employees

Percent of Budget Allocated to Communications and Collaboration Technologies by Company Size—Central Tendency Statistics

North America, 2012


Regardless of company size, percent of budget appears to be very similar for communications and collaboration technologies.


Base: All respondents (n=263).Q46: Approximately what percent of your company’s total expenditure is allocated to communications and collaboration technologies?

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Percent of Budget Allocated to Communications and Collaboration New Technologies by Industry

14.9%

8.5%

13.0%

15.5%

7.2% 7.4%

11.2%10.0%

2.0%

5.0%

13.0%

2.0%

5.0% 5.0%



Percent of Budget Allocated to Communications and Collaboration New Technologies by Industry—Central Tendency Statistics

North America, 2012


The IT/Telecom followed closely by healthcare industries devote the highest percent of budget towards new technologies.


Base: All respondents (n=263).Q47. Approximately what percent of your communications budget is allocated towards new technologies and services such as unified communications and collaboration applications and services?

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Percent of Budget Allocated to Communications and Collaboration New Technologies by Company Size

11.1%

9.5%

11.7%

5.0% 5.0%

10.0%


Percent of Budget Allocated to Communications and Collaboration New Technologies by Company Size—Central Tendency Statistics

North America, 2012


Regardless of company size, budget allocations for new technologies is very similar.


Base: All respondents (n=263).Q47. Approximately what percent of your communications budget is allocated towards new technologies and services such as unified communications and collaboration applications and services?

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Percent of Budget Allocated to UCC Maintenance and Support Costs by Company Size

9.5%

11.9%12.7%

5.0%

10.0% 10.0%


Percent of Budget Allocated to Communications and Collaboration Maintenance and Support Costs by Company Size—Central Tendency

Statistics: North America, 2012


Although relatively similar, we see a slight increase in percent of budget allocated to maintenance and support costs as size of company increases.


Base: All respondents (n=263).Q48. Approximately what percent of your communications budget is allocated towards maintenance and support costs for technologies and services such as unified communications and collaboration applications and services

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Degree of Influence on Budget

61%

41%

41%

38%

33%

27%

15%

14%

13%

10%

CEO

CTO

CFO

CIO

COO

Telecom/network administrator

Data center administrator

Line of business managers

CMO

Virtualization administrator

Degree of Influence on Budget: North America, 2012

The Chief Executive Officer (CEO) clearly has the highest degree of influence on communications and collaboration budget.

Base: All respondents (n=263). Q49: Given your experience, what is the degree of influence that each party listed below has in final budget approval stage for unified communications and collaboration investments in your organization?

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APPENDICES

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Acronyms and Examples of Communications and Collaboration Tools and Solutions

IP PBX: Internet Protocol Private Branch Exchange Telephony

TDM phone: Time Division Multiplexing Phones

IP: Internet Protocol

DECT phones: Digital Enhanced Cordless Technology Phones

VoWLAN phones: Voice over Wireless LAN Phones

LAN: Local Area Network

Consumer Softphones: Such as Skype and Google

Mobile Soft Client Extension of Corporate Communications Applications: Such as instant messaging, PBX telephony or conferencing.

Unified Messaging/Visual Voicemail: Such as integrated voicemail, e-mail, and fax.

Unified Communications Client: A single client for telephony, instant messaging, and conferencing.

Enterprise Social Media Tools: Such as wikis, blogs, micro blogs, and social networking platforms

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