an excerpt of the global enterprise video webcasting...
TRANSCRIPT
An Excerpt of the Global Enterprise Video Webcasting
Solutions Market StudySurge in Enterprise Video Use Makes Webcasting a Key Feature in Holistic
Enterprise Video Solutions
NCEE–70
January 2014
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Research Team
Dan RayburnPrincipal Analyst
Digital Media Group
(+1) 917-523-4562
Anisha VinnyIndustry Analyst
Digital Media Group
(+1) 210-247-3883
Lead Analyst Contributing Analyst
Strategic Review Committee Leader
Avni RambhiaIndustry Manager
Digital Media Group
(+1) 765-418-9229
Special Thanks
Vidya S Nath
Research Director,
Digital Media Group, ICT
Research Director
Mukul KrishnaSenior Global Director
Digital Media Group
(+1) 210-247-3850
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Executive Summary
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Executive Summary
• Enterprise video webcasting solutions (EVWS) encompass hardware and software point
solutions as well as end-to-end platforms that enable enterprises to capture and stream
live video within the firewall.
• The EVWS market is growing as an increasing number of enterprises now use webcasts
as a business-critical communications tool. Maturing IT departments, the surge in bring
your own device (BYOD) uptake, cost savings realized through webcasting, significant
growth curve of video conferencing, and compliance requirements drive market growth.
• On the flip side, lack of awareness about solution sets, confusing pricing models, market
fragmentation, and bandwidth limitations hold the market back. Growth in the EVWS
market is driven primarily by growth in North America and Latin America (NALA), followed
by Asia-Pacific (APAC), and Europe, the Middle East, and Africa (EMEA).
• Although the market is agnostic to verticals by application, size matters here. Larger
enterprises with highly dispersed workforces are adopting EVWS faster than others.
Technology and business services companies, financial institutions, and healthcare and
pharmaceutical firms have been leading consumers of video webcasting solutions.
Source: Frost & Sullivan
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Executive Summary (continued)
• Within the enterprise space, EVWS are most commonly used for executive broadcasts,
corporate communications, and training purposes.
• A number of different vendors from the larger video ecosystem, with various core
competencies, are slowly entering and gauging the enterprise video webcasting market.
By revenue, the market is led by Qumu, followed closely by VBrick Systems. Other key
participants include Cisco, InterCall, Haivision, LifeSize, Polycom, Origin Digital, and
Kontiki.
• In many use-cases, enterprise communications are time-sensitive and need to be live,
conveying business-critical information to employees with the greatest effect and
speed. At the same time, on-demand video assets also serve many different business-
critical functions, especially from a compliance and governance perspective, such as
training and organizational development needs.
• Thus, solutions that can cater to both live and on-demand use-cases are gaining
popularity, especially for larger organizations with highly distributed workforces, such as
multi-location retailers and technology companies.
Source: Frost & Sullivan
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Executive Summary (continued)
• Demand is also increasing for platforms that provide end-to-end functionality for enterprises
to ingest, store, manage, transform, deliver, and monitor their legacy and new video assets
in an integrated, collaborative, and secure environment (live and/or on-demand).
• Webcasts are traditionally used within the enterprise firewall for internal purposes. As
BYOD evolves, webcasts are increasingly used outside the firewall as a tool to drive
revenue through better client engagement and to reach remote employees and partners for
enhanced productivity and reduced travel costs.
• Marketing teams within enterprises use webcasts for product launches, lead generation,
and customer engagement activities. Demand is increasing for hybrid solutions that can
accommodate both types of use-cases—those deployed both in the cloud for external use-
cases and those on premise for internal use-cases.
o Vendors such as Sonic Foundry, VBrick Systems, and Qumu have already begun to offer
such combination solutions.
Source: Frost & Sullivan
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Executive Summary (continued)
• Although, a few vendors have begun moving to subscription-based pricing, the market
majority still charges customers based on usage. Driven by the consumer feedback,
tiered subscription models will slowly but surely become the standard and encourage
greater video use within the corporate enterprise.
• Although demand for EVWS is growing, Frost & Sullivan expects the industry to
converge over the forecast period. Eventually, EVWS will cease to exist as a stand-
alone solution and will be seen as part of the larger enterprise video suite of products.
• In 2013, Frost & Sullivan estimates that the EVWS market earned $218.6 million in
revenue. The market will grow to $522.1 million by 2019.
• Superior client touch, interoperability, and scalability will be differentiating factors for
vendors in this rapidly changing market.
Source: Frost & Sullivan
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Compound
Annual Growth
Rate
15.6%
(CAGR, 2013–2019)
Market
Concentration
30.3%
(% of market share held by
top 3 companies)
Executive Summary—Market Engineering Measurements
Market Stage
Growth
Market Revenue
$218.6 M
(2013)
Market Size for
Last Year of
Study Period
$522.1 M
(2019)
Base Year
Market Growth
Rate
6.7%
Customer Price
Sensitivity
8
(scale:1 [Low] to 10 [High])
Degree of
Technical
Change
4
(scale:1 [Low] to 10 [High])
Total EVWS Market: Global, 2013
Market Overview
Note: All figures are rounded. The base year is 2013. Source: Frost & SullivanStable IncreasingDecreasing
For a tabular version, click here.
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Number of
Companies that
Exited*
0
(2013)
Number of
Companies that
Entered*
0
(2013)
Number of
Competitors
16
(active market competitors in
2013)
Executive Summary—Market Engineering Measurements
(continued)
Competitor Overview
*Companies with revenue of more than $20.0 M.
Note: All figures are rounded. The base year is 2013. Source: Frost & SullivanStable IncreasingDecreasing
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Executive Summary—CEO’s Perspective
2
Based on reported demand, vendors who
optimize their EVWS to meet specific needs of
technology, financial services, healthcare, and
education verticals stand to gain the most over
the forecast period.
3
Among all features of EVWS, maximizing QoE*
within bandwidth constraints and OOB* support
for secure, scalable, and measurable webcasts
are the strongest differentiators.
4
The future is brightest for vendors who can
evolve past component products to offer end-to-
end solutions and platforms, both on premise
and in the cloud.
5
EVWS as a standalone market will fade—
vendors should look to merge or acquire to
develop comprehensive enterprise video
platforms spanning creation, management,
playback, and reporting of video.
1
Highest revenue growth is expected from the
NALA region. The emerging markets within
APAC and EMEA promise substantial growth
beyond the forecast period.
Note: Quality of experience (QoE); Out of box (OOB). Source: Frost & Sullivan
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Market Overview
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Total EVWS Market: Digital Media Value Chain, Global, 2013
Digital Media Value Chain (Global)—2013
Source: Frost & Sullivan
Video Webcasting
Video
Enabled
Consumer
Devices
Broadcast & Cinematography
Cameras
Encoding & Transcoding
Acquisition DeliveryMiddleware and Workflow
Enterprise
Media and
Entertainment
Encoding & Transcoding
Digital Asset Management &
Enterprise Content Management
Media Asset
Management
Video & Ad Insertion
Servers
Nonlinear
Editing
IRDs
Online Video & Web Analytics
Transparent
Caching &
CDNs
Transparent
Caching &
CDNs
Content Protection, Entitlement &
Rights Management
STORAGE
Marketing Automation
Marketing Process Optimization
Enterprise Search
Dynamic Publishing
Animation Software
Animation & CAE
Software
3D
TechnologiesVideo Switchers
IP Video Network
Management
Online Video Platforms
& Analytics
Enterprise Search
Pay TV
Middleware
Online Video Platforms
Digital
Signage
Content Protection, Entitlement &
Rights Management
Broadcast
Scheduling
Systems
Social Media
MonitoringLecture Capture
STORAGE
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Market Overview—Definitions
• Frost and Sullivan defines enterprise video webcasting solutions (EVWS) as software and
hardware point solutions as well as complete end-to-end platforms deployed within the enterprise
firewall that enable companies to capture and stream live video.
• This research focuses on the enterprise market and does not include media, entertainment, or
higher education markets. Companies providing video webcasting services are also excluded from
the analysis.
• In addition, because of the rapid adoption of BYOD, and the increasing number of remote workers,
the definition also extends to use-cases whereby employees use these EVWS for live
communication that goes beyond the firewall, and to unmanaged devices.
• The study also includes software as a service (SaaS)-based EVWS used for internal corporate
consumption.
Source: Frost & Sullivan
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Market Overview—Definitions (continued)
Regions are segmented as follows:
North America and Latin America (NALA): This region covers the continents of North America (NA)
and South America—also referred to here as Latin America (LATAM).
Europe, the Middle East, and Africa (EMEA): This region covers Western Europe; Central and Eastern
Europe (CEE), including Russia; the Middle East; and all regions of the African continent. For clarity,
India is not counted in this definition of EMEA, although several vendors consider India within their
EMEA business division.
Asia-Pacific (APAC): This region covers the Asian continent, the Association of Southeast Asian
Nations (ASEAN) and nations within the Pacific Rim.
Revenue: Market size is measured in terms of vendor revenue in US dollars. For clarity, only revenue
accrued directly by the vendor is accounted for in market sizing. When a given participant (reseller)
resells a product built by an original equipment or original device manufacturer (OEM/ODM), Frost &
Sullivan analysts have excluded the revenue due to the OEM from the reseller’s market share to the
extent that they can be estimated. This methodology minimizes inflation in market size estimates that
may occur due to double-counting. Reporting and estimates are for calendar years, not fiscal years. Source: Frost & Sullivan
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Market Overview—Definitions (continued)
Frost & Sullivan segments the EVWS market in terms of the following verticals:
• Technology and Business Services: includes firms that facilitate the use of technology by enterprises
and end users, such as technical support, computer networking, and systems administration
• Pharma, Healthcare, and Life Sciences: includes pharmaceutical products, facilities and services and
establishments providing health care and social assistance as well as personal care, toiletries, and
cosmetic products
• Financial Services: includes commercial banks, credit agencies, consumer finance companies, and
credit card agencies
• Manufacturing: Includes any industry that processes raw materials and converts them to finished
goods. Typically includes men, machines and large scale production
• Others: Includes multi-location retailers (includes restaurants and stores), telecoms (includes
mobile/cellular communications service providers), government, energy, non-profits, and associations.
Source: Frost & Sullivan
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Market Overview—Key Questions This Study Will Answer
What are the factors that will drive the growth of this market? What are the challenges that will hold
the market back?
Are the existing competitors structured correctly to meet customer needs?
Is the market growing? How long will it continue to grow and at what rate?
What are the current pricing trends in the market, and how will it evolve in the future?
What technical trends are shaping the marketplace today? What disruptions are on the horizon?
Which segments and regions are most rapidly adopting EVWS? How will this landscape evolve in
the future?
Source: Frost & Sullivan
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Enterprise Video Network Architecture—Acquisition to
Distribution
Source: Frost & Sullivan
Total EVWS Market: Video Network Architecture—Acquisition to Distribution, Global, 2013
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Enterprise Video Workflow
Source: Frost & Sullivan
Total EVWS Market: Enterprise Video Workflow, Global, 2013
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External Challenges: Drivers and Restraints—Total
EVWS Market
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Drivers and Restraints
Total EVWS Market: Key Market Drivers and Restraints, Global,
2014–2019
Bandwidth limitations and fear of network weaknesses resulting from EVWS deployment
are a perceived challenge to deploying secure, scalable, and reliable webcasts. H H H
Restricted IT budgets delay purchases of EVWS. H M M
Lack of awareness about EVWS among consumers prolongs sales cycles. H M M
Reluctance of employees to be captured on video is a barrier to widespread adoption. M L L
Market fragmentation causes customer confusion and restricts widespread adoption.M L L
1–2 years
3–4 years
5–6 years
Video webcasting enables enterprises to compress business cycles and drive cost savings
and other efficiencies, fueling demand for EVWS.H H H
Maturing IT departments and CIOs* are getting more comfortable with the complexities and
risks of streaming video within the enterprise firewall, helping drive buy-in for EVWS. H H H
With growth in BYOD and telecommuting, video plays a critical role in employee-friendly
corporate communication and training, spurring demand for EVWS.M M M
EVWS will eventually become part of the larger enterprise video ecosystem, further driving
uptake as a feature of the larger solution set. M M H
Availability of easier to use tools with subscription pricing models increases customer
acceptance of EVWS.M L L
Impact: H High M Medium L Low
Note: Chief information officers (CIOs). Drivers & Restraints are ranked in order of impact. Source: Frost & Sullivan
Ma
rke
t D
riv
ers
Ma
rke
t R
es
tra
ints
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Regional Market Life Cycle Analysis
Western Europe
North America
Central & Eastern
Europe
Middle East
MaturityDevelopment Growth
Africa
Asia
Latin America
Decline
Time
Mark
et
Valu
e
Source: Frost & Sullivan
Total EVWS Market: Regional Market Life Cycle Analysis, Global, 2013
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Competitive Landscape
Sonic Foundry
Panopto
INXPO
Polycom
Kontiki
TalkPoint
Brightcove
LifeSize
Qumu
Origin Digital
Telestream
CiscoON24
InterCall
VBrick Systems
Haivision
Pro
du
ct
Lin
e a
nd
Co
mp
eti
tive S
trate
gy f
or
the
EV
WS
Mark
et
Market Penetration
Total EVWS Market: Competitive Landscape, Global, 2013
Note: Size of bubble indicates size of company by revenue. Source: Frost & Sullivan
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Market Leader—Qumu
Based on revenue, Qumu is the market leader in the global EVWS market, for all segments combined. At
11.6% market share, Qumu’s extended product line with both on-premise and cloud solutions caters to a
plethora of verticals. GlaxoSmithKline, Nokia, Seven-eleven, KPMG, and Caterpillar are among Qumu’s
customers. Several factors contributed to Qumu taking the top spot in the EVWS market:
• After Qumu’s acquisition by Rimage, the combined entity was renamed Qumu, and branding and
marketing efforts have been strengthened.
• Qumu’s core platform the Video Control Center is built on top of a series of integration frameworks. It
provides unique control software for encoders and streaming servers that ensure that there is no
single point of failure in Qumu infrastructure.
• Mobility was a huge differentiator for Qumu, because of its HTML5 portal—Qumu has native
applications for iPads, iPhones, Android (phone and tablets) and Windows (phone and tablets)—built
with a robust analytics system.
o Since its price points tend to skew upwards, Qumu has lagged behind in the SMB market. Cloud
offerings and the new “starter solutions” that Qumu is working to package should help the company
to compete on the low end. Source: Frost & Sullivan
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The Last Word
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The Last Word—Predictions
2Vendors who deliver the best and fastest security, scalability, and reliability
will rise to the top of the market.
3Hybrid solutions—a combination of on-premise and cloud—with the ability
to capture live and on-demand video are the future.
1Enterprise video webcasting may cease to exist as a stand-alone solution.
Only those that will become part of the larger enterprise video ecosystem
will be relevant in 2020.
Source: Frost & Sullivan
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The Last Word—Recommendations
2Invest in solutions that provide better and more innovative ways for
customers to manage their video assets.
3To better poise themselves for growth, vendors must focus on the NALA
market, while educating customers and building reseller partnerships in
APAC and Western Europe.
1Make pricing models easier to understand. It will encourage enterprises to
use more video, a win in the long run.
Source: Frost & Sullivan
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29NCEE-70
Appendix
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Market Engineering Methodology
One of Frost & Sullivan’s core deliverables
is its Market Engineering studies. They
are based on our proprietary Market
Engineering Methodology. This approach,
developed across the 50 years of
experience assessing global markets,
applies engineering rigor to the often
nebulous art of market forecasting and
interpretation.
A detailed description of the methodology
can be found here.
Source: Frost & Sullivan
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Research Methodology and Scope
For the purpose of this research service, Frost & Sullivan has tapped into the following:
• Primary research with webcasting software, hardware, and platform providers
• Customer interviews
• Frost & Sullivan published research services
• Decision support databases
• Company Web sites
• Other secondary resources
Source: Frost & Sullivan
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Partial List of Companies Interviewed
Source: Frost & Sullivan
Sonic Foundry Qumu
Panopto Origin Digital
ON24 INXPO
InterCall Polycom
Digital Rapids Kontiki
VBrick Systems Telestream
Brightcove TalkPoint
LifeSize Haivision
Cisco Fortune 100 aerospace and defense
companies
Business and technology services firms
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Learn More—Next Steps
• Talk to an analyst
• Take our DNA Survey
• Arrange a Growth Workshop
• Explore the Growth Excellence Matrix 2.0
2
The following slides are key excerpts from Frost & Sullivan’s Global
Coverage of the Enterprise Video Webcasting Solutions Market. The
complete study is available for purchase through Frost & Sullivan
and can be found by clicking here