Interoperability and Network Concerns Spur Innovation in Telepresence Managed Services

Oyster Bay, New York - 16 Feb 2011

Latest global telepresence and videoconferencing managed services market forecasts from ABI Research show that the value of the overall market, which includes hosted and managed telepresence and videoconferencing services offered by managed video services providers (MVSPs), is set to reach $1.2 billion by 2016, a CAGR of 19%. In 2010, the market grew by 25% to reach $512.5 million.

Growth in videoconferencing and telepresence adoption has led to a parallel market for managed services because of persistent technology and network complexities and interoperability issues. Telepresence equipment and network interoperability continues to pose strong challenges to business-to-business (B2B) collaboration. MVSPs have developed a compelling suite of services that help companies overcome the complexities associated with telepresence and videoconferencing technologies.

The growing need of enterprises to take telepresence beyond their firewalls and integrate multi-modal conferencing applications has led to the popularity of managed services. “MVSPs are responding to market needs by launching B2B telepresence exchange services,” says senior analyst Subha Rama. “MVSPs are building core capabilities in telepresence managed services. However, expertise is still evolving, especially when it comes to integrating mobile and desktop conferencing users with telepresence rooms.”

Apart from dedicated video services providers, large telcos have identified telepresence managed services as an attractive opportunity to cross-sell their network assets by bundling them with multimedia applications such as telepresence, multi-point HD videoconferencing and real-time content sharing. Also, the use of mobile devices for videoconferencing requires networks to scale and provide secure access to users, which allows providers to bundle multiple services.

However, B2B telepresence exchanges are still at an early growth stage with a number of providers having launched these services only in the last 12 to 18 months. “In terms of market opportunity, the SMBs remain a largely underserved market for telepresence, as equipment and the associated management costs are beyond their reach,” says Practice Director Dan Shey. “We need disruptive cloud-based video and telepresence service delivery models in order to catalyze market growth,” Shey adds.

ABI Research’s “Telepresence and Videoconferencing Managed Services” study analyzes key trends in the hosted and managed telepresence and videoconferencing services offered by MVSPs in terms of growth, technology evolution, demand patterns by geographic regions, and competition.

It is part of the firm’s Enterprise Communications Research Service.

ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 29 research and advisory services. Est. 1990. For more information visit, or call +1.516.624.2500.

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