Photo - Tan Hwee Xian, Market Analyst, Communications, IDC Asia/Pacific.
Malaysia has recorded the second largest revenue in IDC's recent Asia/Pacific Semiannual Collaborations and Video Tracker, which also showed that the market shares of major Unified Communications & Collaboration (UC&C) vendors in Southeast Asia have increased 5.7 percent to US$221.2 million in 2H13 (second half of 2013), compared to 1H13 (first half of 2013).
IDC Asia/Pacific market analyst, communications, Tan Hwee Xian said Malaysia reached US$44 million with enterprise telephony continuing to be the largest revenue contributor (47.9 percent), followed by collaboration apps (30.8 percent), contact centre (13.1 percent) and videoconferencing solution (8 percent).
Tan added that despite the market surge (up 23.9 percent half-over-half), the total UC market for 2013 has slowed down 9 percent "probably due to the Malaysian 13th General Election, which caused the UC&C market to plummet 1H13 by 14.5 percent over the same period of time in 2012."
"This drastic downward trajectory has also affected the 2013 market, causing last year's market to be less stellar than it was in 2012," he said.
"[In addition] we will see the continued stemming of IP telephony in the region as the traditional PBX/ key system will soon reach the end of its life cycle," said Tan. "Companies will need to equip themselves to get ready to tap the upcoming 'mega upgrade cycle' such as IP hardware and IP PBX systems/ lines."
Enterprise collaboration apps on the rise
"There is increasing interest in the implementation of enterprise collaboration apps, videoconferencing and contact centre solutions in the region," he said.
"However, with widespread availability of 'as-a-service' in the marketplace, we are expecting more UCaaS offerings to appear in the market, which will be enlivened into a key UC trend, as observed in Singapore's market," said Tan, who gave brief a brief overview of other countries:
- Singapore - Recorded the largest revenue in the region with US$56.14 million. Collaboration apps comprised the highest revenue with 44.1 percent from total UC&C market, followed by enterprise telephony (36.3 percent), enterprise videoconferencing solution (7.1 percent) and contact centre solution (3.9 percent);
- Indonesia - Third largest revenue, US$39.9 million Similar to Malaysia, enterprise telephony is the largest revenue contributor (46.8 percent), followed by collaboration apps (30.4 percent), videoconferencing solution (13.8 percent) and contact centre solution (9 percent);
- Philippines - US$38.9 million in revenue where UC&C has sustained its stronghold as top contact centre hub in Asia Pacific;
- Thailand - US$32.1 million in revenue. Despite political crisis and economic recession in late 2013, Thailand UC&C market grew in terms of revenues, around 13.3 percent in 2H13 compared to the same period in 2012 and increased over the 1H13 by 12.8 percent; and
- Vietnam - US$11.1 million in revenue as Vietnam is relatively small in UC&C market as total 2H13 has recorded US$11.1 million, representing 50.5 percent of total revenues generated throughout the year of 2013.
Tan said IDC was optimistic about such emerging market as UC&C demands remained "on the high side with 70 percent of enterprises reporting 'not applicable' when asked if they would reduce spending on UC&C/ videoconferencing-related deployments."
"We believe the UC&C industry will continue to grow in the region; however, different markets will have different needs. Local service providers should consider the needs of the local market as well as the client's ICT budget when comes to planning future roadmaps that offer UC&C solutions to cater to the needs of different markets," he said.
Tan said IDC expected that UC&C markets in Southeast Asia will be worth US$650.6 million by 2018, up from US$433.6 million today. "This marks an 8.5 percent Compound Annual Growth Rate (CAGR), although there are signs that growth in the traditional 'on-premise market' is slowing down in the region."
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