SOURCE: Frost & Sullivan

April 27, 2011 10:05 ET

Frost & Sullivan: World Audio Conferencing Bridge Market Defies Economic Decline

Greater Demand for VoIP, Traditional TDM Solutions

MOUNTAIN VIEW, CA--(Marketwire - Apr 27, 2011) - Several audio conferencing bridge and media server vendors experienced a significant increase in port shipments during 2009. Demand for both voice over Internet protocol (VoIP) ports as well as the traditional time-division multiplexing (TDM) ports was equally strong in the service provider segment, as conferencing providers sought to rapidly expand capacity to meet soaring end-user demand. In the enterprise segment, a declining economy compelled companies to look for a more efficient way to conduct business meetings. Many companies replaced extensive travel with audio conferencing, driving demand for both hosted audio conferencing services and premises-based bridges.

New analysis from Frost & Sullivan (http://www.conferencing.frost.com), World Audio Conferencing Bridge Markets, finds that the market earned revenues of $171.2 million in 2009 and estimates this to reach $361.00 million in 2016. Vendors selling integrated solutions that combine audio, video and Web conferencing capabilities, along with other unified communications (UC) applications, are seeing increasing success in the market compared to bridge vendors that sell only audio and Web conferencing equipment.

If you are interested in more information on this study, please send an e-mail to Mireya Espinoza, Corporate Communications, at mireya.espinoza@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

"Greater familiarity and comfort with the use of audio conferencing in mature markets such as Europe and North America, and the acknowledgement of the cost benefits of the technology in emerging markets such as Asia Pacific have led to increasing usage," says Frost & Sullivan Program Director Elka Popova.

Audio conferencing continues to be a key collaboration and productivity tool for most businesses. Its ability to eliminate or reduce travel costs and boost productivity through more extensive collaboration across geographically dispersed teams help audio conferencing consistently receive a fair share of a company's technology budget.

However, severe price pressures have accompanied growing demand for audio conferencing. Conferencing service providers (CSPs) are compelled to seek cost-effective audio conferencing infrastructure rollouts, which has restricted bridge revenue growth.

"Demand for standalone audio conferencing bridges will slow as UC products that integrate audio conferencing features gain increasing traction in the enterprise market," cautions Popova.

Traditionally, communications, conferencing, and collaboration deployments and usage have been fragmented within large customer organizations. Currently, businesses are migrating from the silo approach of the past toward a more holistic UC infrastructure.

"In response, telephony vendors have sought to integrate audio conferencing capabilities into their telephony platforms," concludes Popova. "Additionally, conferencing and collaboration solutions are swiftly becoming integrated into the enterprise workflow."

World Audio Conferencing Bridge Markets is part of the Conferencing & Collaboration Growth Partnership Services program, which also includes research in the following markets: World Videoconferencing Infrastructure, Endpoints and Services Markets, World Web Conferencing Hosted Services and Software Markets, and World Audio Conferencing Services and Endpoint Markets. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.

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