Bill HaskinsSr. Analyst, Unified CommunicationsWainhouse Research

UC Adoption CurveState of the UC Union

AYST100

Definitions

Definitions

Definitions

= UC as a User Experience

UC as a Platform =

UC as a Philosophy =

= UC as a Service (UCaaS)

Drivers

• YOUNGER KNOWLEDGE WORKERS

• TECHNOLOGY LIFECYCLE

• CONSUMERIZATION

Nearly two thirds of

20 Somethings bring their

own device to work

Among 50 Somethings,the number who BYOD drops by

almost half

61%

33%

By 2020, Millennial

s will comprise

50% of the global

workforce

2013 PWC report, Millennials At Work: Reshaping the Workplace2013 CompTIA Survey, Generational Research on Technology and its Impact in the Workplace© 2014 Wainhouse Research, Inc. All rights reserved.

Younger workers are driving BYOD

Key Trends

58%More work-from-home solutions

75%More mobile

solutions

Communication technologies IT Managers feel pressure to deploy as younger workers

enter the workplace

• MOBILE EVERYTHING

• DEMAND FOR TEXT AND VIDEO

• PREFERENCE FOR PERSONAL SOLUTIONS

56%More video solutions

49%More

Presence/IM

2

Key Impacts

© 2014 Wainhouse Research, Inc. All rights reserved.

UC State of the Union - Desktop

2004 2005 2006 2007 2008 2009 2010 2011 2012 201350%

60%

70%

80%

90%

Enterprise Use of IM

What IM solution do you use?

Microsoft Cisco IBM Skype Google Other/None:

52%

5%9%

16%

1%

16%

53%

18%

10%8%

1%

10%

2012 2013

Microsoft Cisco IBM Skype for Business

Google Avaya Unify Mitel

39%

10% 10%8%

7% 7%

2% 3%

43%

20%

11% 10%

5%4% 3%

1%

2012 2013

What UC solution have you deployed?

Microsoft Cisco IBM Skype for Business

Google Avaya Unify Mitel

39%

10% 10%8%

7% 7%

2% 3%

43%

20%

11% 10%

5%4% 3%

1%

2012 2013

What UC solution have you deployed?

1 2 3 4 50%

10%

20%

30%

40%

50%

60%

70%

UC Platforms In Production

2013 UC Feature Deployments

Integration - Business Apps

Federation

Integration - Contact Center

Integration - Room Video

Mobility

PBX

Conferencing - Audio

Conferencing - Video

Conferencing - Web

Audio

App Share

Video

IM

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

>50% of users < 50% of users

13%77%

39% 31%

29% 26%

2013 UC Feature Deployments

Integration - Business Apps

Federation

Integration - Contact Center

Integration - Room Video

Mobility

PBX

Conferencing - Audio

Conferencing - Video

Conferencing - Web

Audio

App Share

Video

IM

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

>50% of users < 50% of usersYOY Change Features

<0%

0-10%

10-25%

>25%

Top Barriers to UC Deployment

© 2014 Wainhouse Research, Inc. All rights reserved.

Desktop

1) Cost - Equipment

2) Internal Support

3) Network

4) Quality

5) Cost – Services

2013 UC Features Used vs. Available

IMAu

dio

App

Shar

ing

Vide

o

Web

Con

fere

ncin

g

Vide

o Con

fere

ncin

g

Audi

o Con

fere

ncin

g

77%

47% 44% 43% 39% 39% 39%

69%

31% 30% 26% 26% 28% 31%

Deployed >50% Used Frequently

Hosted Audio + Personal Web180.2B Minutes

98.2B Minutes

Hosted Audio + Personal Web

Worldwide Audio Conferencing Volume

9

2012108B Minutes

UC9.7B

Minutes

9%

UC84.8B

Minutes

32%

13%CAGR

54%CAGR

2017265B Minutes

CAGR20%

© 2014 Wainhouse Research, Inc. All rights reserved.

UC State of the Union - Mobility

Mobile devices used for business communications

Apple

iPho

ne

Andro

id

Black

Berry

Win

dows Mob

ile

Sym

bian

None

43%

20% 21%

2% 1%

14%

38%

33%

15%

8%

0%

6%

Apple

iPad

Andro

id b

ased

Win

dows ba

sed

Black

Berry

Pla

yBoo

k

Amaz

on K

indl

eNon

e

44%

8%

3% 3%0%

41%41%

16%

8%

0% 1%

34%

Smartphones Tablets

Smartphones Tablets

Mobile Feature availability

IM / Presence Audio Video View Shared Content

69%

44% 42%36%

82%

70%65%

62%

IM / Presence Audio Video View Shared Content

67%

56%

48% 48%

84%

77% 77%80%

Smartphones Tablets

Mobile Feature Utilization - 2013

IM / Presence

UC Client Audio

UC Client Video

View Shared Content

82%

70%65%

62%

75%

55%

47%42%

IM / Presence UC Client Audio

UC Client Video

View Shared Content

84%

77% 77%80%

68%63% 62% 61%

Top Barriers to UC Deployment

© 2014 Wainhouse Research, Inc. All rights reserved.

Desktop

1) Cost - Equipment

2) Internal Support

3) Network

4) Quality

5) Cost – Services

Mobile

1) Quality

2) Internal Support

3) Network

4) Reliability

5) Cost – Equipment

UC State of the Union -UCaaS

Contact Center

Telephony Service (PBX)

Shared Workspace (i.e. SharePoint)

Email

IM/P System (i.e. Lync)

Video Conferencing

Audio Conferencing

Web Conferencing

51%

50%

52%

54%

50%

44%

26%

22%

29%

31%

25%

26%

26%

28%

32%

34%

11%

7%

8%

4%

8%

9%

10%

11%

CPE Managed Hosted Hybrid

Deployment Models

© 2014 Wainhouse Research, Inc. All rights reserved.

Contact Center

Telephony Service (PBX)

Shared Workspace (i.e. SharePoint)

Email

IM/P System (i.e. Lync)

Video Conferencing

Audio Conferencing

Web Conferencing

51%

50%

52%

54%

50%

44%

26%

22%

29%

31%

25%

26%

26%

28%

32%

34%

9%

12%

14%

16%

17%

20%

32%

33%

11%

7%

8%

4%

8%

9%

10%

11%

CPE Managed Hosted Hybrid

© 2014 Wainhouse Research, Inc. All rights reserved.

Deployment Models

Contact Center

Telephony Service (PBX)

Shared Workspace (i.e. SharePoint)

Email

IM/P System (i.e. Lync)

Video Conferencing

Audio Conferencing

Web Conferencing

51%

50%

52%

54%

50%

44%

26%

22%

29%

31%

25%

26%

26%

28%

32%

34%

9%

12%

14%

16%

17%

20%

32%

33%

11%

7%

8%

4%

8%

9%

10%

11%

CPE Managed Hosted Hybrid

© 2014 Wainhouse Research, Inc. All rights reserved.

Deployment Models

Contact Center

Telephony Service (PBX)

Shared Workspace (i.e. SharePoint)

Email

IM/P System (i.e. Lync)

Video Conferencing

Audio Conferencing

Web Conferencing

51%

50%

52%

54%

50%

44%

26%

22%

29%

31%

25%

26%

26%

28%

32%

34%

9%

12%

14%

16%

17%

20%

32%

33%

11%

7%

8%

4%

8%

9%

10%

11%

CPE Managed Hosted Hybrid

© 2014 Wainhouse Research, Inc. All rights reserved.

Deployment Models

Contact Center

Telephony Service (PBX)

Shared Workspace (i.e. SharePoint)

Email

IM/P System (i.e. Lync)

Video Conferencing

Audio Conferencing

Web Conferencing

51%

50%

52%

54%

50%

44%

26%

22%

CPE Managed Hosted Hybrid

© 2014 Wainhouse Research, Inc. All rights reserved.

Deployment Models

YOY Change Hosted

Contact Center

Telephony Service (PBX)

Shared Workspace (i.e. SharePoint)

Email

IM/P System (i.e. Lync)

Video Conferencing

Audio Conferencing

Web Conferencing

51%

50%

52%

54%

50%

44%

26%

22%

29%

31%

25%

26%

26%

28%

32%

34%

9%

12%

14%

16%

17%

20%

32%

33%

11%

7%

8%

4%

8%

9%

10%

11%

CPE Managed Hosted Hybrid

© 2014 Wainhouse Research, Inc. All rights reserved.

-21%

-8%

+106%

+29%

+69%

+76%

+216%

+4%

Deployment Models

2013 UCaaS Vendor Mindshare

Hosted by Specialist (i.e. Thinking Phone Networks)

Hosted by SI (i.e. DiData, CSC)

Unify OpenScape Cloud Services

AvayaLive Connect

Hosted by CSP (i.e. InterCall, Arkadin)

Hosted by Telco (i.e. ATT, BT, OBS)

IBM SmartCloud for Social Business

Cisco Jabber / WebEx Connect

Microsoft Office 365

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

25%

33%

16%

17%

Currently Using Considering or Testing

+67%

+6%

+32%

-30%

-62%

-21%

+85%

-60%

YOY Change

+32%

Global UCaaS Market: 2012 – 2017

In 2012…

The UCaaS Market is poised for

growth

9M seats

Revenue = $1.4B

ASP (Y) = $152

By 2017…52M seats

Revenue = $6.8B

ASP (Y) = $1315X$

5 Year CAGR – Global Revenue

© 2014 Wainhouse Research, Inc. All rights reserved.

Video - Group Systems

Automated Audio Conferencing

Personal Web Conferencing

Video - Services

Video - Personal

UCaaS

-5%

4%

6%

11%

26%

43%

A Look Forward

2013 Trialed UC Features

IM

Audio

Video

App Share

Conferencing - Web

Conferencing - Audio

Integration - Contact Center

Conferencing - Video

Federation

Integration - Business Apps

PBX

Mobility

Integration - Room Video

0% 5% 10% 15% 20% 25%

2012 - 2013 YoY Trialed UC Features

Integration - Business Apps

PBX

Integration - Contact Center

Federation

Conferencing - Audio

Mobility

Integration - Room Video

Conferencing - Video

App Share

Conferencing - Web

Audio

Video

IM

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

Summary of Interesting ThingsSocial (small)Consumerization = UnUnified CommunicationsContext Aware CommunicationsContent ShareCloudMobility

PC ReplacementDevice Awareness

VideoImproved InteropImproved WorkflowGood Enough

IntegrationBusiness Process

Monday, February 17th

Exhibit Hall Hours 6:00pm – 8:00pm

6:00pm – 8:00pm Welcome Reception

Tuesday, February 18th

Exhibit Hall Hours 8:00am – 9:00am (Breakfast), 10:30am – 5:00pm

8:00am – 9:00am Breakfast (Exhibit Hall) 9:00am –10:30am General Session10:30am – 5:00pm Expo Hall Hours11:00am – 12:15pm Sessions & Hands-on Labs12:15pm – 2:00pm Lunch2:00pm – 5:00pm Sessions & Hands-on Labs5:00pm – 7:00pm Ask the Experts

Wednesday, February 19th

Exhibit Hall Hours 10:30am – 4:30pm

7:30am – 8:30am Breakfast8:30am – 11:30am Sessions & Hands-on Labs10:30am – 4:30pm Expo Hall Hours11:30am – 1:00pm Lunch1:00pm – 5:45pm Sessions & Hands-on Labs6:30pm – 9:30pm Attendee Party

Thursday, February 20th

Exhibit Hall Hours 9:00am – 12:00pm

8:00am – 9:00am Breakfast9:00am – 12:00pm Expo Hall Hours9:00am – 12:15pm Sessions & Hands-on Labs12:15pm – 1:30pm Lunch and Departures

Ask the ExpertsLocation: Meal Hall located on Level 1 in Pinyon Ballroom 4-8 Tuesday, February 18

TABLE TOPICS:Best Practices, Business Value, Clients & Mobility, Lync Meetings and Video, Lync Online, Networking, Platform, Server & Manageability, Voice, Lync Feedback Sessions

Meet face-to-face with the foremost experts in the Lync field and ask them the questions that have you stumped.

Location: Breakout rooms located on Level 1 5:00pm-7:00pm

GROUPS INCLUDE:Manageability – Pinyon 2Meetings & Web Experiences – Bluethorn 4-6Mobility – Bluethorn 7-9Presence & Chat – Pinyon 1Voice & Video – Bluethorn 1-3

Come participate in targeted Feedback Sessions to hear about the high-priority feature asks and help us improve the next release!

Lync Feedback

These sessions are meant to be informational, providing an understanding of the workload and conversational, to discuss your user scenarios and desired improvements.

Birds of a FeatherBirds of a Feather flock together! Join daily breakfast discussions of relevant topics by sitting in the separately designated areas of the Meal Hall. Seating will be sorted in a different way for each Birds of a Feather breakfast:Wednesday, February 19:Where are you from? Asia/Pacific, Eastern & Central Europe, Latin America, Middle East & Africa, US (West, Central & East) and Canada, Western Europe

Thursday, February 20:What is your interest?Best Practices, Business Value, Clients & Mobility, Lync Meetings and Video, Lync Online, Networking, Platform, Server & Manageability, Voice

#LyncConf14

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© 2014 Microsoft Corporation. All rights reserved. Microsoft, Windows, Windows Vista and other product names are or may be registered trademarks and/or trademarks in the U.S. and/or other countries.The information herein is for informational purposes only and represents the current view of Microsoft Corporation as of the date of this presentation. Because Microsoft must respond to changing market conditions, it should not be interpreted to be a commitment on the part of Microsoft, and Microsoft cannot guarantee the accuracy of any information provided after the date of this presentation. MICROSOFT MAKES NO WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, AS TO THE INFORMATION IN THIS PRESENTATION.