Frost & Sullivan: Rapid Adoption of Videoconferencing as a Cost Saving Solution Drives the European Videoconferencing Endpoints Market Growth

LONDON, May 12, 2010 - Companies across the world have significantly changed their way of
undertaking business on a day-to-day basis, since the beginning of the
economic crisis. Limited travel budgets have impelled companies to seek new
means of communication and collaboration. The reduction in the number of
regular in-person meetings has given rise to innovative tools that enable
companies to build and consolidate business relations while saving time and
money. Videoconferencing has proved to be a viable solution for companies
that are reducing their travel expenditure, thereby boosting the European
videoconferencing endpoints market growth.

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New analysis from Frost & Sullivan (www.conferencing.frost.com),
European Videoconferencing Endpoints Market, finds that the market earned
revenues of $383.6 million in 2009 and estimates this to reach $1.03 billion
in 2015 at a compound annual growth rate (CAGR) of 18.0 per cent. The visual
collaboration endpoints covered in this research are group systems and
executive desktop systems videophones (HD/SD).

The major growth factors of the videoconferencing endpoints market in
Europe include the need for companies to decrease travel expenses, search for
alternative ways to meet their workers and clients and the stringent
environment policies imposed by the European Parliament. Additionally,
videoconferencing is stepping up the decision-making process and enhancing
teamwork in the more-than-ever dispersed workforce.

"The videoconferencing endpoints market has been witnessing a slow
transformation in the recent years, largely attributed to the introduction of
high-quality products, such as high-definition conferencing and telepresence,
the market's shift towards converged audio, video and web conferencing
solutions, and integration with other existing collaborative applications,"
states Iwona Petruczynik, Frost & Sullivan Research Analyst.

However, the European videoconferencing endpoints market is restrained by
several factors. For example, the misconception that videoconferencing
services are communications tools used only by large enterprises is hindering
the adoption among small and medium businesses. Moreover, new communications
and collaboration vendors are delivering videoconferencing as a part of a
unified solution, creating a one-stop-shop for their customers; however, this
is hampering the growth of standalone videoconferencing providers. Poor
infrastructure and low bandwidth, especially in the Central and Eastern
Europe (CEE), also have adverse effects on the videoconferencing endpoints
market growth.

"The two main challenges with which the market is constantly battling are
- the long-standing belief that videoconferencing is a complicated tool,
reserved only for the top level management in large enterprises, and the rise
of unified communications (UC), where audio, web, and video-conferencing
tools are converging," says Petruczynik.

Overcoming the first barrier is a constant challenge for vendors.
However, with the recession spurring the growth of videoconferencing, these
collaboration tools and their benefits have been brought to the fore,
especially their increasing ease of use. Videoconferencing vendors should be
able to proactively address their clients' needs and evolve constantly in
this market. The trend of shifting towards UC is leading to an increased
attention to the adoption and usage of visual collaboration in business.

"The rough economic climate that is promoting the importance of reducing
expenditure, is creating a greater awareness about visual collaboration among
enterprises," notes Petruczynik. "A vast number of conferencing service
providers and equipment vendors are developing visual collaboration systems
capabilities as a one-stop-shop for their clients."

If you are interested in more information on this study, please send an
e-mail to Joanna Lewandowska, Corporate Communications, at
joanna.lewandowska@frost.com, with your full name, company name, title, and
the contact details.

European Videoconferencing Endpoints Market is part of the Conferencing &
Collaboration Growth Partnership Services programme, which also includes
research in the following markets: visual collaboration, communication
services, and enterprise communications. All research services included in
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have been evaluated following extensive interviews with market participants.

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    European Videoconferencing Endpoints Market
    M52C-64

    Contact:
    Joanna Lewandowska
    Corporate Communications - Europe
    P: +48-22-390-41-46
    E: joanna.lewandowska@frost.com

Joanna Lewandowska, Corporate Communications - Europe, Frost & Sullivan, +48-22-390-41-46, joanna.lewandowska at frost.com