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Latin America Unified Communications &
Collaboration Solutions Market
Executive Summary
NDEC-64
July 2014
NDEC-64 3
Study Description
Market Scope:
• This study examines the trends in the unified communications and collaboration
solutions market in Latin America.
• It estimates the incomes of the product providers of unified communications in
2013 and projects the revenues up to 2020.
• The study considers incomes provided by product manufacturers
(manufacturing revenue) and excludes revenues generated by indirect channels
of distribution (street revenue).
• It does not consider incomes generated by provision of services, but only
considers products on premise—in other words, this study excludes revenue
generated by hosted products or cloud base.
Source: Frost & Sullivan analysis.
NDEC-64 4
Study Description (cont.)
The key application segments and enabling platforms that form the UC framework are:
Unified Communications
and Collaboration Solutions
Unified
Communications Videoconferencing
Enterprise
Telephony
• Traditional telephony
• IP telephony
• IP terminals
• Video Conferencing Endpoints (VCEs): Room Solutions and Executive Desktop Systems
• Video Conferencing Infrastructure (VCI): Multipoint control units (MCU) and Non-MCU Infrastructure
• Unified Client
• Unified Messaging
• Web Conferencing On Premises
Source: Frost & Sullivan analysis.
NDEC-64 5
Study Description (cont.)
• Enterprise telephony
• Enterprise telephony is an umbrella term used to define traditional telephony, IP
telephony, and IP phones.
•For traditional and IP telephony, this study only considers the line-license component
that provides the end user access to an enterprise telephony system. Revenue from
any hardware or software element necessary for the telephony system to work is not
included. Furthermore, managed services and service fees associated with
maintenance, integration, and installation are not included.
• Time Division Multiplexing (TDM)
• Traditional telephony refers to telephony line licenses that work over private-branch-
exchange (PBX) systems.
• IP Telephony
• Internet protocol (IP) telephony refers to telephony line licenses that work over IP-PBX
systems. The IP-PBX can be a hybrid system (that supports traditional telephony and
IP telephony), but a license must be an IP-line license for consideration in this
category.
Source: Frost & Sullivan analysis.
NDEC-64 6
• IP Terminals
• IP phones are communications endpoints that connect to the company network and
provide the end user access to the enterprise’s IP communications system. This study only
counts desktop IP phones, not multimedia IP phones equipped to support video calling.
• Unified Communications
• UC is an umbrella term that, depending on the source, can cover a wide range of
information and communication technologies (ICTs). For this study, only unified clients and
unified messaging solutions are considered. Furthermore, only client-access license (CAL)
revenue that enables the end user to use the aforementioned solutions is included.
Hardware components necessary for these solutions to work are not included, nor are
managed services or service fees associated with maintenance, integration, and
installation.
• Unified Client
• Unified clients are software-based interfaces that include the following capabilities: PC-
based presence, telephony presence, point-to-point voice calling and PBX call handling,
instant messaging, audio conferencing, application and file sharing, and PC-based video.
Study Description (cont.)
Source: Frost & Sullivan analysis.
NDEC-64 7
• Unified Messaging
• Unified messaging includes applications that integrate storage and accessibility of
voice, fax, and email messages into a single mailbox that can be accessed by email,
telephone, Web browser, or a unified client.
• Web Conferencing On Premises
• Web conferencing on premises is available as a licensed software for installation on
servers; the Web conferencing application is deployed behind the enterprise firewall
and managed by the customer. This product is typically offered as a converged
conferencing of a UC solution.
• Video Conferencing
• In this study, Frost & Sullivan only considers room solutions, executive desktop
systems, and infrastructure systems, within the videoconferencing category.
• Frost & Sullivan counts revenue from the physical component sales of the
aforementioned solutions. All professional and managed services are excluded from
the revenue count.
Study Description (cont.)
Source: Frost & Sullivan analysis.
NDEC-64 8
Study Description (cont.)
• VCE
Within video conferencing endpoints (VCEs), this research service considers room
solutions and executive desktop systems.
• Room Solution
• Room videoconferencing solutions facilitate videoconferencing in a group setting. These
are high-quality systems designed to be used in shared environments such as meeting
rooms, boardrooms, and auditoriums. This category has evolved tremendously over the
last several years. Price points have come down, form factors have become more
diverse, and functionality has improved.
• Executive Desktop Systems
• Executive desktop systems are characterized by fully integrated hardware–based
endpoints with built-in camera, microphone, speakers, and LCD, which can also be
utilized as a PC monitor. These units are primarily designed for personal conferencing.
The smaller form factor makes them well-suited for desktops, executive suites, remote
offices, and doctors’ offices.
Source: Frost & Sullivan analysis.
NDEC-64 9
• VCI
• Within video conferencing infrastructure (VCI), this study considers multipoint control
units and non-multi point control units.
• MCU
• A videoconferencing bridge, also called a multipoint control unit (MCU), allows
videoconferencing endpoints to connect and participate in a multi-point conference.
• Non-MCU Infrastructure
• Infrastructure systems include routers, firewall traversal, gateways, gatekeepers, and
management and scheduling software.
Study Description (cont.)
Source: Frost & Sullivan analysis.
NDEC-64 10
Research Methodology
This strategic analysis is part of Frost & Sullivan’s continued coverage of the Latin
America unified communications and enterprise solutions market.
Geographical Regions Covered:
• The study covers the following regions: Brazil, Mexico, Central America and The
Caribbean, Andean Region (Colombia, Venezuela, Peru, Bolivia, Ecuador),
Southern Cone (Argentina, Chile, Paraguay, Uruguay).
Research Methodology and Scope:
o In order to assess the current LATAM unified communications solutions market, data from
many primary and secondary sources were used, including: Interviews with enterprise
telephony, software, and equipment vendors.
o Frost & Sullivan‘s published research services
o Frost & Sullivan‘s decision support databases
o Company Websites and other secondary sources
The base year for this research service is 2013 and forecast period is 2014 to 2020.
Source: Frost & Sullivan analysis.
NDEC-64 13
Executive Summary
• In 2013, the unified communications and collaboration solutions market in Latin America generated a
revenue of $890,386,656 Million, representing a growth of 3.8% from 2012.
• In 2014, market revenue growth is expected to be small. Lack of knowledge about all the benefits of
these services, recession in the economies of the region, depreciation of local currencies, free
solutions as participants of the market, lower prices, and bundle options that included more than one
technology at special rates are the main reasons for this recession.
• However, UC applications, along with IP telephony and videoconferencing, are expected to continue
to grow. The total unified communications and collaboration solutions market is forecast to grow at a
compound annual growth rate (CAGR) of 6.8% during 2013–2020.
• The enterprise telephony segment is forecast to grow at a CAGR of 5.2% due to the decline in IP
prices. While the units are expected to grow, the prices are likely to decline, producing a balance with
a similar revenue scenario as the year before.
• The unified communications segment is expected to grow at a CAGR of 11.4%, considering the
escalating price of its components. This is the highest-growing segment in the market. The products
in this segment are gaining popularity steadily and are known as a software that increases
productivity.
• The video conferencing segment is expected to grow at a CAGR of 8.1%, considering the growing
recognition of these solutions. VCI is likely to stand out within this segment
• In 2013, Brazil was the largest market in Latin America, accounting for 37.4% of total sales, having a
39.3% market share in 2012. Mexico is positioned to get the second place in 2013 of the market
share in Latin America, with 25.0%, owning a 22.8% market share in 2012. Source: Frost & Sullivan analysis.
NDEC-64 14
Market Status by Application
• Enterprise Telephony continues to be the
most important segment in terms of revenues.
• The time-division multiplexing (TDM)
telephony segment decelerated since vendors
are switching focus to increase Internet
protocol (IP) telephony solutions penetration.
• Unified communications demonstrated stable
growth throughout the LATAM region, with the
Mexican market experiencing the highest
growth from 2012, closely followed by the
Andean region and the Southern Cone region
. However, Brazil has the highest investments
in this solution.
• The videoconferencing segment grew at 16.4
percent. Is the smallest segment within the
unified communications and collaboration
solutions market. Note: All figures are rounded. The base year is 2013. Source: Frost & Sullivan analysis.
Percent Sales Breakdown
Total UC and Collaboration Solutions Market by Segment: LATAM, 2013
69.5%
17.2%
13.2%
Enterprise Telephony Unified Communications Video Conferencing
NDEC-64 15
Drivers & Restraints M
ark
et
Dri
vers
M
ark
et
Restr
ain
ts
Total UC and Collaboration Solutions Market: Key Market Drivers and Restraints, LATAM, 2012–2020
Government restrictive polices (such as taxes in Brazil and
restriction on import of equipment in Argentina) likely to restrain UC
equipment adoption M M M
Constant development, promotion, and access to cost-free solutions restrains growth.
M L L
Unstable economic scenario in key Latin American countries
slows market growth M L L
Underdeveloped IT infrastructure in Latin America affects technology adoption in secondary cities
M L L
1–2 Years 3–5 Years 6–7 Years
Globalization of Latin American economies likely to generate new opportunities for unified communications
M M L
Low costs of employment and maintenance of new communication solutions to increase implementation of solutions M M L
Conception of new collaborative and multitask jobs, which require secure, rapid feedback would drive the adoption of UC applications
M M L
Arrival of enhanced devices that enable and support UC solutions to allow increase penetration of advanced applications in Latin America
L M M
Impact: H High M Medium L Low Note: Drivers and restraints are ranked in order of impact. Source: Frost & Sullivan analysis.
NDEC-64 17
Who is Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and
achieve best-in-class positions in growth, innovation and leadership. The company's Growth
Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best-practice models to drive the generation, evaluation, and implementation
of powerful growth strategies. Frost & Sullivan leverages 50 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from more than 40 offices on six continents.
To join our Growth Partnership, please visit http://www.frost.com.
NDEC-64 18
What Makes Us Unique
All services aligned on growth to help clients develop and implement
innovative growth strategies
Continuous monitoring of industries and their convergence, giving clients first
mover advantage in emerging opportunities
More than 40 global offices ensure that clients gain global perspective to
mitigate risk and sustain long term growth
Proprietary TEAM Methodology integrates 7 critical research perspectives to
optimize growth investments
Career research and case studies for the CEOs’ Growth Team to ensure
growth strategy implementation at best practice levels
Close collaboration with clients in developing their research-based visionary
perspective to drive GIL
Focused on Growth
Industry Coverage
Global Footprint
Career Best Practices
360 Degree Perspective
Visionary Innovation Partner
NDEC-64 19
TEAM Methodology
Frost & Sullivan’s proprietary TEAM Methodology ensures that clients have a complete 360 Degree
PerspectiveTM from which to drive decision making. Technical, Econometric, Application, and Market
information ensures that clients have a comprehensive view of industries, markets, and technology.
Technical
Real-time intelligence on technology, including emerging technologies, new
R&D breakthroughs, technology forecasting, impact analysis, groundbreaking
research, and licensing opportunities.
Econometric
In-depth qualitative and quantitative research focused on timely and critical
global, regional, and country-specific trends, including the political,
demographic, and socioeconomic landscapes.
Application
Insightful strategies, networking opportunities, and best practices that can be
applied for enhanced market growth; interactions between the client, peers,
and Frost & Sullivan representatives that result in added value and
effectiveness.
Market
Global and regional market analysis, including drivers and restraints, market
trends, regulatory changes, competitive insights, growth forecasts, industry
challenges, strategic recommendations, and end-user perspectives.
NDEC-64 20
Global Perspective
• 1,700 staff across every major market worldwide
• Over 10,000 clients worldwide from emerging to global 1000 companies
NDEC-64 21
Frost & Sullivan Contacts
Jose Roberto Mavignier
Director of Latin America - ICT
Frost & Sullivan Latin America
+55 11 3065-8463
Juan Manuel Gonzalez
ICT Industry Manager
Frost & Sullivan Latin America
+54 11 4777 0071
Valeria Goldsworthy
Industry Analyst - ICT
Frost & Sullivan Latin America
+55 11 4771 8006