market research report : unified communications market in india 2012

Unified Communications Market – India

March 2012

Executive Summary

Market

Benefits

� An in-depth analysis of the UC market brings forth various benefits of UC deployment which can be enlisted as:

� Tangible cost savings

� Better productivity

� Improved ROI

� The Unified Communication Market in India is undergoing through a growth phase wherein it is experiencing a

CAGR of 23.5% and is poised to reach a market size of INR xx bn by 2016

� In 2011, the market was valued at INR yy bn, out of which voice based communication, conferencing and

messaging and calendaring accounted for INR aa bn, INR bb bn and INR cc bn respectively

� Currently, the market is flooded with both foreign and domestic established players, wherein they face a stiff

competition

Drivers Challenges

2UNIFIED COMMUNICATIONS MARKET - INDIA.PPT

Driver &

Challenges

Competition

UC Vendors

AT& T Alcatel Lucent

Dell Cisco

Nortel Avaya

Drivers

�Rise in enterprise mobility

� Proliferation of 3G and broadband

�High presence of smart devices

�Growing youth population

Challenges

�Government restrictions

� Lack of awareness

•Introduction

•Market Overview

•Technology

•Deployment Strategies

•Benefits of Unified Communications

•Cloud Based Unified Communications

•Drivers and Challenges


•Drivers and Challenges

•Vendor Opportunity�Public Sector

�SME Sector

•Technology Trends

•Competition

•Strategic Recommendations

•Appendix

Unified Communications – Typical Framework

Branch Offices Salesforce / Remote WorkersCorporate Headquarter

VoIP Phone VoIP Phone

Standard Phone


InternetInternet

Source: xxx

VPN Connection

VoIP Phone

VPN Connection

VPN Connection

Standard Phone

VPN Connection

• The unified communications market in India is witnessing a significant growth factor wherein the CAGR hovers at around 23.5% and was valued at INR xx bn in 20--� Considering the current growth rate and the prevailing opportunities, the Indian market is poised to reach an impressive market size of

INR yy bn by 2016

• Major influencing factors in the market comprises of proliferation of broadband and 3G services and rising enterprise mobility

• The urgency to curtail costs and increase work productivity amongst organizations simultaneously, is boosting the market by leaps and bounds

• The market is primarily dominated by established players including Cisco, Avaya, Microsoft, Genesys and Aspect Software to name a few

• Other players such as Polycom, Siemens, Servion and NEC have marked an impressive presence in the market space• Some players such as BT, Verizon and AT&T follow a separate business model wherein they form alliance with vendors to offer

Need for business collaboration across industry verticals is

primarily fueling growth in the UC market

Unified Communications Market Overview - India


• Some players such as BT, Verizon and AT&T follow a separate business model wherein they form alliance with vendors to offer infrastructure as a service to organizations

Source: xxx

Indian Unified Communications – Market Size & Growth

INR bn

c

b

a

0

23.5%

2016e2015e2014e2013e2012e20112010

Messaging & CalendaringConferencingVoice Based

SAMPLE Unified Communications – Benefits

• Several cost savings associated with UC implementation can be enlisted as below:� Xxx

� Yyy

� Zzz

Tangible Cost Savings

Better Productivity


Source: xxx

• ROI calculation of UC cannot be directly measured in terms of monetary units, however the following

points will help understand the various returns of a UC solution� www

� Xxxx

� yyy

• Some of the factors enhancing the work productivity can be enlisted as below:� Abc� Def

Improved ROI

SAMPLE Unified Communications – Tools and Solutions

Voice

Communication

IP PBX / Hybrid VoIP Communication

Software

Audio Conferencing Video Conferencing


Source: xxx

Conferencing

Messaging

&Calendaring

Audio Conferencing Video Conferencing Web Conferencing

Instant Messaging Unified Message Software

SAMPLE Cloud Computing Based Unified Communication – Typical

Framework

Office voice serverData mining &

synchronization

Client application

gateway

Cloud based UC services / solutions offered by vendors

Services or solutions comprise of

various applications or softwares

facilitating communications on a

real-time basis such as Microsoft

365, Google IM services,

Microsoft's Skype of Nimbuzz to

name a few

UC mobile phone

UC desktop / laptop


Source: xxx

Unified Communication Vendors

Office Voice Environment

IP PBX Legacy PBX

UC PDA / Tablet PC

SAMPLE Cloud based UC is one of the best suited options for

companies operating on low IT budget and expertise

• xxx

Cloud based UC - Overview


Source: xxx

Reasons to opt cloud computing

• xxx

Cloud based UC - Security

• xxx

SAMPLE Cloud based UC is one of the best suited options for

companies operating on low IT budget and expertise

Facilitates both inbound and outbound data transmission

Users

Firewall

Antivirus, URL


Source: xxx

Applications, products and services to support Instant messaging, video calling,

audio calling, text file sharing, multimedia file sharing

URL checking, content control,

logging and archiving

Cloud based protection

Service / application providers

Drivers & Challenges – Summary

Drivers

Rise in enterprise mobility

Challenges


Rise in enterprise mobility

Proliferation of 3G and broadband

High presence of smart devices

Growing youth population

Government restrictions

Lack of awareness

SAMPLE Vendor Opportunity - Summary

Vendor Opportunity

•Government/ public sector scenario

•Investments

Public Sector SME Sector


•Investments

•Key factors driving the adoption rate

•Key technologies with strong future

prospects

•Strategy to generate maximum profit

•Prospective leads for UC vendors in the

Indian UC market

•Market share

•Drivers

•Challenges

•SMB investment scenario: 2010 – 2015e

•SMBs preference for technology

SAMPLE Public Sector (1/2)

Government / Public

Sector Scenario • xxx


Source: xxx

Investments• xxx

• Cumulatively, GoI is anticipated to invest about INR xxx bn over the coming five years

Key Factors Driving

Adoption Rate

• Some of the key influencing aspects which propels the UC adoption in government sector

can be enlisted as follows:� Xxx

� Yyy

� Zzz

� aaa

SAMPLE IT expenses of SMBs for UC solutions and products exhibits

a sound market scope for vendors

•SMBs in India are poised to shell out a significant amount of their total revenue for UC adoption in the ensuing years

•Messaging & calendaring, conferencing and enterprise voice communications are most widely adopted technologies

•The following illustration will provide a clear picture of the overall IT expenses of SMBs with respect to these technologies

2010 2015e

aa


Source: xxx

b

a

c

Audio Conferencing Messaging and CalendaringVoice Conferencing

The Change

INR xx bn

INR yy bn

INR zzbn

INR aa bn

INR bb bn

INR cc bn

c

a

b

Competition - Summary

• Microsoft

• Cisco

• Avaya

• Nortel

• Alcatel

IP Telephony

Messaging

Conferencing


• Microsoft

• IBM

• Cisco

• Avaya• Microsoft

• Cisco

• Avaya

• Polycom

• Genesys

SAMPLE Major Public Companies - Summary

4,500,000

9,000,000

Net Profit/Loss

Size of the Bubble represents Market Capitalization in INR mn


Source: xxx Note: All figures are in INR mn and are based on the latest financials available

-4,500,000

0

-100,000 0 100,000 200,000 300,000 400,000 500,000 600,000

Total income

eeedddcccbbbaaa

SAMPLE Public: Foreign Company – xxx. (1/3)

Company Information Offices and Centres – India

Corporate Address

Tel No.

Fax No.

Website

Year of Incorporation

Ticker Symbol

Stock ExchangeIndia Head Office

New Delhi


Source: xxx

Key People

Products and Services

Stock Exchange

Category Products/Services

xxx xxx Name Designation

Note: The list of products and services is not exhaustive

India Head Office


Financial Snapshot Key Ratios

Financial Summary

• The company incurred a net profit of INR xx tr in FY 2011, as

Net Profit/LossTotal Income

2010

b

c

d

0

Profit

INR tr

2011

b

c

d

Revenue

INR tr

a a

20092008

Particulars y-o-y change

(2011-10)2011 2010 2009 2008

Profitability Ratios

Operating Margin -6.02 9.49% 15.51% 17.02% -1.33%

Net Margin -12.65 3.27% 15.92% 10.09% -1.87%

Profit Before Tax Margin -9.14 5.26% 14.39% 15.00% -3.61%

Return on Equity -14.07 3.95% 18.03% 12.20% -2.44%

Return on Capital Employed -3.32 5.06% 8.38% 9.08% -0.76%

Return on Working Capital 90.27 -53.87% -144.14% -105.81% 11.98%

Return on Assets -5.94 1.55% 7.49% 4.64% -0.89%

Return on Fixed Assets -15.65 3.91% 19.55% 12.51% -2.39%

Cost Ratios

Operating costs (% of Sales) 6.25 90.43% 84.18% 82.86% 101.37%


• The company incurred a net profit of INR xx tr in FY 2011, as

compared to net profit of INR yy tr in FY 2010

• The company reported total income of INR aa tr in FY 2011, as

compared to INR bb tr in FY 2010

• Xxx

• xxx

Key Financial Performance Indicators

Indicators Value (dd/mm/yyyy)

Market Capitalization (INR mn) 9752886

Total Enterprise Value (INR mn) 13033948

EPS (INR) 0.66

PE Ratio (Absolute) 46.90

Improved DeclineSource: xxx

Operating costs (% of Sales) 6.25 90.43% 84.18% 82.86% 101.37%

Administration costs (% of

Sales)4.21 30.65% 26.44% 25.60% 39.51%

Interest costs (% of Sales) 0.38 2.79% 2.41% 2.75% 2.73%

Liquidity Ratios

Current Ratio 24.98% 0.75 0.60 0.68 0.53

Cash Ratio 29.27% 0.24 0.19 0.20 0.10

Leverage Ratios

Debt to Equity Ratio 10.59% 1.56 1.41 1.63 1.74

Debt to Capital Ratio 4.43% 0.37 0.35 0.39 0.42

Interest Coverage Ratio -47.75% 3.43 6.57 6.24 -0.50

Efficiency Ratios

Fixed Asset Turnover -1.74% 1.18 1.20 1.23 1.25

Asset Turnover 1.61% 0.47 0.46 0.46 0.47

Current Asset Turnover -7.66% 5.50 5.96 4.86 5.47

Working Capital Turnover 83.79% -16.32 -8.88 -10.41 -6.26

Capital Employed Turnover 7.90% 1.20 1.11 1.20 1.28


Key Business Segments Key Geographic Segments

0%

50%

100%

20112008 20102009

0%

50%

100%

2008

xxxAdvertising Solutions

Wireline Other

Wireless


Source: xxx

Key Information

Description Details

Overview

• AT&T Inc., together with its subsidiaries, provides telecommunications services to

consumers, businesses, and other providers, globally

• The company was formerly known as SBC Communications Inc. and changed its name to

AT&T Inc. in November 2005

Most Recent Auditor • Ernst & Young LLP

SAMPLE SWOT Analysis – AT&T Inc.

•A

•B

•C

•D

Strength

•E

•F

Weakness


Source: xxx

SWOT

•G

•H

Opportunity

•I

•J

Threat

SAMPLE Strategic Recommendations

xxx

xxx xxx


• xxx • xxx

Source: xxx

Thank you for the attentionThe Unified Communications Market report is a part of Research on India’s Telecommunication Series. For more detailed information or customized research requirements please contact:

Kalyan BangaPhone: +91 33 4064 6215

E-Mail: [email protected]


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