AVI-SPL Frost Sullivan Workplace Collaboration Study

Frost & Sullivan — AVI-SPL

Disrupt or Be Disrupted

Collaboration Trends and Growth Opportunities for 2016 and Beyond

April 6, 2016

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• Enterprise Collaboration Market Trends

• Voice of the Customer • Aligning AVI-SPL with Customer Aspirations

Agenda

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Connected Work Satisfies the requirements of the organization and its workforce

CONNECTED WORK

Collaborative

Multi-modal Conversations Content Collaboration

People-centric

User Experience Flexible Work Practices

Work-life Balance Global Talent Sourcing

Agile

Ubiquitous Connectivity Software-based Solutions

Cloud Architectures WebRTC

Mobile

BYO Mobile-first Tech Development

Wearable technologies IoT

Contextual

Single Pane of Glass User Identity-driven

Persistent Conversations Analytics

Focus on Work Results Rather than How, When and Where

Environment-friendly

Travel Reduction Remote Working

Innovating to Zero

Customer-driven

Omni-channel Support Context Awareness

Crowd Sourcing

Source: Frost & Sullivan.

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Mobile First and Cloud Change Everything

• Business environment and technology changes lead to shifts in user expectations

• Proliferation of devices - there will be more devices than people on the planet

• “Mobile first” prioritizes mobility of UX across computing devices – PCs , Macs, smartphones, tablets, wearables..

• Cloud is a table stake

Work – Not a place you go It’s what you get done from anywhere anytime


“38% of businesses are already deploying their UCC applications in the cloud and another 48% plan to move to the cloud over the next 3 years”

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Cloud Deployment Options Each type of collaboration cloud is positioned differently for support and customization

Public • SP hosted infrastructure; apps delivered as subscription service

• Shared environment and shared platform resources at lower cost

Private

• Single-tenant 1:1 service; all compute power dedicated to a single account

• SP or enterprise owned and SP-managed; infrastructure is CPE, SP or 3rd party hosted

• Lacks scale & cost benefits of public cloud but offers greater control & flexibility

Hybrid

• Integrated customer-owned and cloud SP elements

• Inter-cloud services integration

• Enables investment protection, control, OPEX & outsourced complexity


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Flexible Form Factors and Deployment Models

• On-Premises

• Hosted and Cloud

• Managed

Flexible Deployment Models

put the Choice in

Customers’ Hands

Video Communications

Integration into the

Workflow

Conference Rooms

Mobile Devices

Open spaces Desktops

Huddle rooms


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Video Conferencing—Tactical Benefits

51%

Reduces Development Time

55%

Shrinks Meeting Times

Supports Dispersed Workers

58%

45%

Directly Increases Revenues

59%

Makes Meetings more Effective

62%

Reduces Travel Time & Costs


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Video Conferencing—Strategic Benefits

Base: All respondents (406, specific number varies for each technology), S2Q5: Please rate the importance of the following technologies if used within your organization

Base year is 2016. Source: Frost & Sullivan.

0% 20% 40% 60% 80% 100%

Audio conferencing

Consumer softphones (e.g.,Skype, Google)

Desktop video conferencing

Enterprise socialcollaboration tools

Web conferencing

Instant messaging

Room-based videoconferencing

Percentage of Sample

Reduces enterprise costs

Helps us expand to new markets

Helps us attract and retaincustomersBoosts product innovation

Helps us attract and retainworkforceImproves marketing effectiveness

Improves productivity

Helps us gain a competitiveadvantageImproves collaboration

Accelerates decision making

Table stakes for doing businesstoday

Key Takeaway: Strategic adoption drivers are gaining more importance in video conferencing investment decisions.

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Video Conferencing Adoption Restraints

Base: All respondents (406, specific number varies for each technology), S2Q7: Which of the following best describes why your organization is not using nor has no plan to use following


Key Takeaway: Most of the top barriers to adoption (cost, perceived low value, complexity, security concerns) are legacy and can be overcome through education.

0% 20% 40% 60% 80% 100%

Room-based video conferencing

Audio conferencing

Enterprise social collaboration tools

Consumer softphones (e.g., Skype,Google)

Instant messaging

Web conferencing

Desktop video conferencing

Percentage of Sample

Cost is prohibitive

Do not see value

Too complex to manage

Employees do not want it

Executives do not want it

Rely on bring your owntechnology (BYOT) for thesetoolsWe have security concerns

Quality not good enough

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Communications Infrastructure, Current and Future

0%

10%

20%

30%

40%

50%

Multiple products from multiplevendors that are not integrated

Tightly integrated multi-vendorsolutions

End-to-end single-vendor solution

N= 406

Currently Use Expect To Use Two Years From Now


(8.4)

+9.4

(1.0)

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AVI-SPL

• Experience

• A/V integration leadership

• Symphony

• Vendor agnostic

• Full cloud portfolio

o Private

o Public

o Hybrid

• Installed base

• Customer education

• Establishing public cloud

• Co-opetition

• Heavy system integration/installation

focus

• Maintaining differentiation & brand

name recognition

• Changing nature of meeting spaces

• Competitor mindshare


Strengths Challenges

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Growing Business Complexities

and Communications Fragmentation

• Shorter technology lifecycles

• Need for immediacy & quick decision making

• Mobile support challenges

• Geographically dispersed customers, partners, work teams

Creates the Perfect Storm for

Services and Support

+

Email

Video

Team Spaces

Online Meetings

Workflows

File Share/Sync

Productivity Tools

Group Chat


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Growing Need for Agile Clouds with

Advanced Services

Growing collaboration complexity increases need for:

Monitoring & management across clients, devices, networks

Integration & success services - adoption, optimization, benchmarking

Personalization + Engagement

Mindset shift from tech to “outcomes”

Connecting People + Business + Technology

Convergence is top of mind

Unified service across devices from “Pocket to Conference Room”

Video is integral to the collaboration experience

Not an end goal

Flexible consumption & hybrid growing


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Yesterday’s Video Conferencing Can’t Handle

Today’s Demands

Frost & Sullivan Market Data

(15%) global CPE video conferencing infrastructure revenue decline

25% global hosted/cloud video conferencing services revenue growth

22% 5-year CAGR in hosted/cloud video conferencing service revenue

35% 5-year CAGR in global hosted/cloud video conferencing seats

13% growth in managed & private cloud services revenues

12% 5-year CAGR in managed & private cloud services revenue


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Thinking Outside of the “Conference Room”

Past

Dedicated Conference Rooms

Board rooms; large

meeting spaces

Future

Dedicated Conference

Rooms

Executive Offices & Small meeting

spaces

Huddle Rooms Open Spaces

Multi-purpose collaboration friendly meeting spaces

• Meeting Rooms are Not Dying! The future is in software, but we expect more rooms and more meetings

• Meetings will be less structured - Less about technology and more about the UX and CX


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Total Market Opportunity

UCC - What We are Headed Towards...

$48 B*

2020

$27 B

2015

• Cloud Services will grow from 46.6% of TAM to 74.8% by 2020

• Total UCC TAM includes global business telephony; IM-centric UC; and audio, video and

web conferencing. The 5-Year CAGR is 11.2%

• The global pro AV market is an additional $91.8 billion market in 2014

(source: InfoComm International)


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Recommendations

Simple and Flexible

Unified Open Platforms

Smart Integrations

Today’s digital users have embraced social, mobile and cloud for pervasive connectivity and persistent access. The new opportunity centers on making the “collaboration experience” significantly better for users.

A new breed of providers is disrupting the status quo. Providers that understand emerging user behaviors and align their offerings for the next generation of digital users will win.


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Conclusion: AVI-SPL should continue to leverage and strengthen its core competency as a leading AV and IT service provider, while innovating on advanced services to attract the next generation of digital users that want a unified experience with simplicity, reliability, and smart workflows.

The Last Word

Mobile-Centric Unified Smart Workflows


Thank You!

Q & A

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Contacts

Rob Arnold Principal Analyst, UCC [email protected] @RobArnoldUCC

Roopam Jain Industry Director, UCC [email protected] @Roopamjain

Documents

AVI-SPL Frost Sullivan Workplace Collaboration Study