IDC: Desktop Collaboration, Cloud-based Service Models, and Mobility are Top Trends for Next Development Wave of Web Conferencing in China
06 Dec 2013
Beijing, December 6, 2013 – According to IDC, the size of China’s web conferencing market totaled USD$38.84 million in 2012, with a compound annual growth rate (CAGR) of 24.1% over the last three years.
The market research firm revealed that web conferencing has become the foundation for desktop collaboration, and has made significant contributions to the growth of the unified communications market.
As more and more enterprises set up branch offices in different cities and even overseas, demands for cross-region communication is increasing, This is validated in IDC’s report on Web Conferencing/Desktop Collaboration Evolution in China, which states more than 42% of corporate users engaged in cross-region and multi-person communication multiple times per week.
"There are some new trends emerging in China's web conferencing market. Web conferencing is evolving towards desktop collaboration; the cloud service model is becoming more and more widespread; and there are increasingly strong demands for cloud-based mobile terminals. In addition, web conferencing is transforming from a product-centered model to a people-centered model," says Jason Shen, senior analyst from IDC China Telecommunications Research Group.
Internal collaboration is still the most important scenario for applications of web conferencing as IDC’s survey results show that “communication and collaboration with colleagues at offices in different regions” was chosen by more than 88% of users. That is currently the most important application scenario.
"As web conferencing products are accepted by an increasing number of users, they are playing a much more important role in external communication and collaboration, particularly in the industries such as high technology and finance where web conferencing products have higher rates of usage."
Shen explains that in the hi-tech industry for example, more than 61% of corporate users have used web conferencing for customer interactivity and sales presentations. In addition, IDC advises that web conferencing is playing a bigger role in external training, customer service-trouble shooting and remote interviews.
IDC identified the following trends in China's web conferencing market:
1. Web conferencing will evolve towards desktop collaboration. Driven by user demands, web conferencing will evolve from communications only to communication plus collaboration. More web conferencing solutions will be integrated with the audio and/or video conferencing systems. Meanwhile, web conferencing products are able to achieve integration with collaboration products such as desktop sharing, application sharing, electronic whiteboard, web collaboration browsing, conference balloting, and instant messaging. IDC advises that desktop collaboration results in a better user experience as well as closer links with corporate business, integrated system deployment model. will predominate in the market.
2. The cloud-based model of web conferencing will become more common. Backed by one-off low investment, fast deployment, ease of use, and a high ROI, the cloud service model has been accepted by an increasing number of corporate users, especially SME (small and medium enterprise) users. According to IDC research, the market share of software-based web conferencing maintained sustainable growth in China market over the last three years, increasing from 77% in 2010 to 80% in 2012. IDC believes this trend will continue over the next five years. IDC expects a number of domestic vendors to offer cloud-based web conferencing products to enable them to transform from vendor to service provider. As foreign web conferencing service providers are limited by the number of licenses and maintenance staff, they are more likely to adopt the cloud service model.
3. The mobilization of web conferencing will be promoted. With widespread use of large screen smartphones and tablets, users' demands for web conferencing/desktop collaboration-enabled mobile terminals is rapidly growing. IDC's survey shows that over 30% of corporate users expect their mobile devices such as tablets and smart phones to include web/video conferencing functions. And with widespread use of BYOD in China, an increasing number of corporate users have requirements for mobile communication and collaboration, which will inevitably boost the mobile web conferencing market.
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