Impact of Over-The-Top (OTT) Applications on the Australian Enterprise

Communications Market

Key trends in the OTT market and their impact on traditional

communication applicationscommunication applications

Anand Balasubramanian

Industry Analyst, ICT

July 2013

Agenda

� Overview of Over-The-Top (OTT) Applications

� Key Trends Driving the Usage of OTT Applications

� Conclusion and Road Ahead for OTT Applications

2

OTT and Social Media Applications on the Rise

• E-mailing and making

calls from social media

platforms will be common

in the future

• Ease of downloading and

using an app for free makes users reluctant to

3

makes users reluctant to

pay for communication

services

• Applications such as

WhatsApp and Viber are

eating into traditional SMS revenues

Cost and Accessibility Rated as the Main Drivers for OTT Usage

53%

61%

Accessibility (from any device such

as desktop, mobile or tablet)

Cost (It is either free or we pay a

minimal fee by bypassing the

carrier network)

• Cost advantages

particularly attractive

for small businesses

• Ease of access from

any device – laptop,

smartphone or tablet

4

27%

31%

45%

0% 10% 20% 30% 40% 50% 60% 70%

No contract and licensing

overheads

Low or no maintenance overheads

Ease of use and high levels of

familiarity for users• Reliability, scalability

and quality of service

among the main

restraints

N=227

IP Deskphone and Skype Rated as the Main Mediums for Voice Communication

• OTT applications

growing in preference

as a VoIP solution

• Skype is the second

most often used VoIP

solution within

organisaitons

8%

38%

48%

Google Chat (or Hangout)

Skype

IP deskphone

5

organisaitons

• Google Hangouts,

Viber and Apple

Facetime among other

popular choices

0%

3%

4%

0% 10% 20% 30% 40% 50% 60%

OoVoo

Apple Facetime

Viber

N=227

31% of Organisations Rate Free Consumer Applications as the Preferred Method for Video Communications

• OTT applications

preferred to desktop or

personal video

endpoints

• Majority of small

businesses prefer to

use Skype or Hangout

31%

39%

Free to use consumer applications

such as Skype, Facetime, Google

Chat/Hangout etc

Traditional group or room based

systems (typically one or two

screen set up from vendors)

6

use Skype or Hangout for video

• Room based video

conferencing systems

remain the preferred

solutions for larger

organisations2%

28%

0% 10% 20% 30% 40% 50%

BlueJeans (cloud based video as a

service solution)

Desktop based or personal

videoconferencing systems (Cisco,

Polycom, LifeSize, Vidyo etc)

N=227

Skype and Google Rated as the Most Used OTT Applications within the Enterprise

20%

25%

78%

Viber

Google Chat or Hangouts

Skype

• Skype’s popularity and

familiarity as a

consumer application

driving usage within

enterprises

• Skype is widely used

for IM, voice and video

7

3%

9%

11%

12%

0% 20% 40% 60% 80% 100%

OoVoo

Whatsapp

Other Applications

Apple Facetime

N=227

for IM, voice and video communication in

small and medium

businesses

• Google building tighter

integration of

Hangouts with its

email platform

Conclusion

• Cloud, mobility, social media and OTT services are driving

new communication experiences

• Cost saving, ease of use and superior user experience are

some of the main drivers for OTT usage

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some of the main drivers for OTT usage

• Number of OTT players expected to emerge in the next few

years offering voice , video and SMS functions

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Today’s Presenter

Anand Balasubramanian, Industry

Analyst

Frost & Sullivan

Anand specializes in emerging ICT trends, technologies, businesses trends and market

11

Anand specializes in emerging ICT trends, technologies, businesses trends and market

analysis. His expertise lies in vendor and channel ecosystem analysis, developed through

various market research assignments. His writing skills range from white papers, market

insights to market analysis reports. He has a strong understanding of Enterprise

Communication and consulting in Multimedia Messaging, Wide Area Networks (WAN),

Content Distribution Networks (CDN) and Online Video Platforms (OVP) markets.

For any other enquiries, email us:

asiapacific@frost.com