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Business Mobile Communications –Breaking Away from the Confines of the Desk
A Plethora of Endpoints for Diverse Customer Needs
Alaa Saayed, Research Analyst
Information Communication and Telecommunications
September 24, 2008
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110 Million Office Workers
Enterprise Worker Classification
Source: Frost & Sullivan
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Enterprise Worker Classification
90 % are at Least 20% of the Time on the Go
Source: Frost & Sullivan
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Enterprise Worker Classification
90 % are at Least 20% of the Time on the Go
15%
Office Workers
Office Workers
Mobile Workforce
Executivesand Management
65%
20%
Source: Frost & Sullivan
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Enterprise Style Classification
On The Road
Building Premises
Client Site/Branch Office
On CampusOffice Worker
Airport
Public Hotspot
Home
Hotel
Source: Frost & Sullivan
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Industry Worker Classification
Estimated Workers
Mobile Comm.
Necessity
IT and Telecom Spending
Medium Very HighLow/Medium Low/Medium
Low/Medium MediumVery HighMedium MediumMedium
11 M20 M 9 M 3 M 6.5 M 15 M
Manufacturing and
Warehousing
Healthcare Education Government Finance Retail
Very HighLow/Medium
Source: Frost & Sullivan
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How Does Frost & Sullivan Classify Enterprise Mobile Endpoints?
Mobility Gateway SwitchPBX
Enterprise mobile endpoints are communicational devices and applications that are paid,
subsidized (up front or through a reimbursement) and managed by an enterprise business.
The device and/or application are, in turn, integrated with the rest of the enterprise
Communications infrastructure (premise-based or hosted system) to extend voice, video,
and data communication.
Source: Frost & Sullivan
Business Mobile Communication Scope
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Corded Phones
Cordless Phones
Virtual Phones
DECT
PBX System
IP PhonesDigital PhonesAnalog Phones
Digital Deskphones IP DeskphonesAnalog Deskphones
Source: Frost & Sullivan
IP DECT/SIP DECT
Mobile Phones
First Level FMC
Second Level FMCVoWLAN Phones
Dual-Mode
Fixed Mobile Clients
Analog Cordless
Softphones
VoWLAN Phones
Single-Mode
Business Mobile Communication Endpoints
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VoWLAN Devices
Picture source: Nokia, Polycom, and RIM
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VoWLAN Single-Mode Findings
• Growth: Available since 2000 – Considerable traction.
• Main Participants: Cisco, Polycom's SpectraLink, Vocera, Motorola, and OEM’s
• Main Customers: Verticals such as healthcare, manufacturing, and retail.
• Average Price: $300-400
• Major Trends:
• Major Drivers 1) Deployment of WLAN and IP telephony – 2) Vertical adoption
3) Advanced handsets 4) Long-term cost Savings
• Major Challengesand Restraints:
�Higher penetration of WLAN infrastructure �New Wi-Fi standard (802.11n)�New acquisitions�Emergence of new verticals
1) Perception of security and QoS 2) Cost of implementation 3) Alternative solutions, 4) Slow standard ratification
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VoWLAN Enabled Dual-Mode Findings
• Growth: New technology – 2006-2007: mostly trials – Great future potential.
• Main Participants: Mobile manufacturers: Motorola, Nokia, RIM, and Samsung
IP telephony providers: Avaya, Cisco, and Siemens
• Main Customers: Road and corridor warriors – Carpeted office
• Average Price: $500-650
• Major Trends:
• Major Drivers 1) Continuous entry of participants - 2) Growing popularity of consumer smartphones – 3) New benefits to customers
• Major Challenges and Restraints
�New partnerships and acquisitions�Upsurge of “Second Level” FMC clients�Enterprise WiMax
1) Lack of clear business models – 2) Limited service provider interest 3) High prices - 4) Cellular inertia
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VoWLAN Forecast
Note: All figures are rounded; the base year is 2007. Source: Frost & Sullivan
VoWLAN Device Market: Unit Shipment and Revenue Forecasts (North America), 2006-2014
-
500
1,000
1,500
2,000
2,500
2006 2007 2008 2009 2010 2011 2012 2013 2014
Reven
ues (
$ M
illi
on
)
0.00
1.00
2.00
3.00
4.00
5.00
Un
its (
Mil
lio
n)
Revenues ($ Million) Units (Million)
2007 Units: 254,000
2007 Revenues: US$110.5 million
Revenue CAGR Single-Mode (2007-2014): 25.1%
Revenue CAGR Dual-Mode (2007-2014): 131.8%
VoWLAN phones will represent 10% of total IP phone shipments in 2014.
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DECT Devices
Picture source: Polycom, Siemens, and snom
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• Growth: Mature technology – 20 years of existence – Undergoing transformation
• Main Participants: Aastra, ALU, Ascom, Polycom’s KIRK, NEC-Phillips and Siemens
• Main Customers: Businesses with legacy systems / with mobility needs and no WLAN / with mobility needs and WLAN for data only – Vertical and SMBs
• Average Price: $200
• Major Trends:
• Major Drivers 1) Maturity and stability – 2) Voice quality and security
3) Cost effectiveness 4) Integration with IP telephony
• Major Challenges & Restraints
DECT Findings
�Expansion of DECT 6.0�SIP and IP DECT – an alternative�New features and services
1) Image perception – 2) Price erosion 3) Limited or no data integration 4) Limited popularity in NA
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DECT Forecast
Note: All figures are rounded; the base year is 2007. Source: Frost & Sullivan
Enterprise DECT Phone Market: Unit Shipment and Revenue Forecasts, (North America) 2006-2014
0
15
30
45
60
75
90
105
120
135
2006 2007 2008 2009 2010 2011 2012 2013 2014
Reven
ues (
$M
illi
on
)
0.00
0.15
0.30
0.45
0.60
0.75
Un
its (
Mil
lio
n)
Revenues ($ Million) Units (Million)
2007 Units: 80,000
2007 Revenues: US$15.2 million
Revenue CAGR (2007-2014): 32.0%
Units CAGR (2007-2014): 33.9%
Competing with VoWLAN single-mode devices, DECT will represent 35% of the combined single-mode and DECT shipment in 2014
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Softphones
Picture source: Counterpath, Netphone, and Zultys
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Softphone Findings
• Growth: Introduced 1995 – Hold major potential – Default IP desktop extensions
• Main Participants: IP Telephony providers: Avaya, Cisco, Nortel, Mitel, and Siemens.
Sofphone vendors: Counterpath, Nuvoiz, and IP Blue Software Solution
• Main Customers: Travelling executives, road warriors, telecommuters, and call-center agents
• Average Price: $25-50 range per-user basis
• Major Trends:
• Major Drivers 1) The growth of IP telephony – 2) The growth of IP desktop phones
3) The flexibility of softphones - 4) The popularity of consumer soft phones
• Major Challenges & Restraints
�Improved features and services�Emergence of UC
1) QoS – 2) Softphone security – 3) Pricing pressures – 4) Lack of habit
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Softphone Forecast
Enterprise Softphone Markets: Units Shipment and Revenue Forecasts (North America), 2006-2014
Note: All figures are rounded; the base year is 2007. Source: Frost & Sullivan
0
20
40
60
80
100
120
140
160
2006 2007 2008 2009 2010 2011 2012 2013 2014
Years
Reven
ues (
$ M
illi
on
)
-
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
Un
its (
Mil
lio
n)
Revenues ($ Million) Units (Million)
2007 Units: 461,000 units
2007 Revenues: US$18.9 million
Revenue CAGR (2007-2014): 32.5%
Units CAGR (2007-2014): 37.1%
Roughly Softphone shipment will represent 10% of the total IP phoneshipment in 2014 (80% to IP desk phone users and 20% to non-desk phone users).
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FMC Clients
Picture source: Cicero Networks and D2 Technologies
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FMC Client Findings
• Classification: “First Level” PBX client extensions and “Second Level” FMC clients
• Growth: Vey high potential
• Main Participants: IP Telephony providers: Avaya, Cisco, Nortel, and Siemens.Soft manufacturers: Counterpath’s Firsthand, DiVitas, Agito NetworksOthers: Tango Networks, Telepo, OnRelay, and Varaha systems.
• Main Customers: Travelling executives, road warriors, and mobile professionals.
• Average Price: $50-100 range per-user basis for “First Level” PBX clients$200-300 range per phone for “Second Level” PBX clients
• Trends
• Current Market: A few hundred of thousands? No forecast available yet.
�PBX client extensions evolve into full FMC clients�MUC - a “Third Level” FMC client or not?
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Focus Points
Total Market Snapshot
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Total Forecast
0.00
0.50
1.00
1.50
2.00
2.50
3.00
3.50
4.00
4.50
2006 2007 2008 2009 2010 2011 2012 2013 2014
Un
its
(M
illio
n)
DECT VoWLAN Single-Mode VoWLAN Dual-Mode Softphones
Business Mobile Communications: Units Shipment Forecasts (North America), 2006-2014
Source: Frost & Sullivan
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For Additional Information
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