North American Conferencing Service Provider (CSP)-based videoconferencing services market revenue rose by 18% to $184.2m in 2009, primarily driven by a 26% increase in managed services revenues, according to a new report by business research and consulting firm Frost & Sullivan.
The firm said that managed services have become an attractive option for companies that have deployed on-premises videoconferencing offerings and are looking to outsource the management function. The firm predicts CSP-based videoconferencing services market to earn $599.6m in 2016.
The videoconferencing services industry, despite good growth posted in 2009, is far from reaching critical mass. The firm said that the growing adoption of high-definition (HD) video will create a distributed network demand and the need for managed services in order to ensure their interoperability with legacy systems.
Frost & Sullivan said that the role of MSPs is extending beyound the planning, installation, and integration phase to maintenance and management, as enterprises take videoconferencing outside their corporate firewalls to communicate across the public internet and external private networks.
Subha Rama, industry analyst at Frost & Sullivan, said: Key technology advancements have enabled videoconferencing to gain significant traction over the past 10 years. However, it remains a very complex technology to implement and manage.
“There is a huge untapped market opportunity for managed services as companies that have deployed videoconferencing on premises are finding the complexities associated with managing and using the technology to be challenging.
