Australia’s cloud communications market to reach $650M by 2020 as businesses move to softphones, cloud and mobile apps

January 21, 2015

SYDNEY, AUSTRALIA – More Australian businesses are adopting modern communications options, including cloud services, transforming traditional voice calls into unified communications (UC), according to new research from emerging technology analyst firm Telsyte.

Most organisations (88%) have staff that use a softphone at least once a week and Skype is the most popular application, well ahead of softphone that vendors ship with their PABX systems. A further 40 per cent of organisations are evaluating docking solutions to enable mobile devices to act as a desk phone replacement while in the office.

There is also a shift in how enterprise communications services are being procured with Telsyte forecasting cloud communications – where the customer does not own or manage PABX equipment – will exceed 30 per cent penetration by 2020. This is being driven by more options from traditional telco and non-telco service providers and will represent a market value exceeding $650M.

The Australian Enterprise Communications Market Study 2015 examines the impact of emerging technologies on business communications and how organisations can prepare for future disruption.

Telsyte Senior Analyst Rodney Gedda says organisations need to find the best ways to integrate services for holistic enterprise communications that will increasingly involve mobile devices and wearables.

“Instant messaging, presence and e-mail integration are the most deployed UC applications, but Web collaboration and BYOD integration are becoming more important as organisations look to modernise their business and support next generation employees,” Gedda says.

Telsyte forecasts UC to grow strongly in 2015 as organisations look to refresh both legacy TDM and IP-based infrastructure.

“CIOs know UC can reduce costs, which is a key driver, however, UC is increasingly as a path to optimising IT and enhancing business flexibility. This indicates a marked change from communications being seen as a cost centre to more of a productivity platform.”

Less than 5 per cent of Australian enterprises are “mobile only” and don’t have fixed line infrastructure, however, these organisations can still take advantage of unified communications through fixed-mobile convergence and cloud services.

The Australian Enterprise Communications Market Study 2015 covers the key vendors and service providers in the communication and collaboration market including: AAPT, Alcatel-Lucent, Amcom, Apple, Avaya, BlackBerry, Cisco Systems, Google, LifeSize, Macquarie Telecom, Microsoft, MyNetFone, Mitel, NEC, Optus, Polycom, ShoreTel, Siemens, Telstra, TPG, UXC Connect, Vidyo and WebEx.

For further information on the study or media inquiries contact:

Rodney Gedda
Senior Analyst
Tel: +612 9235 5891
Email: rgedda@telsyte.com.au

For sales and consulting inquiries contact:

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Email: ffadaghi@telsyte.com.au

About The Australian Enterprise Communications Market Study 2015

The Australian Enterprise Communications Market Study 2015 is derived from primary research of 258 Australian ICT decision makers in organisations with 20 to 20,000+ employees. The comprehensive study provides subscribers with strategic insights around:

• How the enterprise communications market is growing
• Unified communications drivers and barriers
• The return on videoconferencing investments
• The growth of cloud communications

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au

The material in this article is copyright protected and not intended to be altered, copied, distributed or used for any commercial/non commercial purpose, except for news reporting, comment, criticism, teaching or scholarship.

Apple’s iPhone 6 in demand, but cost might make it a luxury

September 11, 2014

Today’s big news in technology is the much-anticipated announcement of the next-generation iPhone, the iPhone 6. With a bigger screen and more connectivity, including NFC, the iPhone 6 and iPhone 6 Plus are set to be very popular when available on September 19, however, Australians intending to buy an iPhone might delay their purchase due to cost.

High demand could mean strong sales

Telsyte forecasts around 1.5 million iPhone units (all models) could be sold by the end of the year in Australia, or around a 100,000 units per week on average over the peak holiday season, depending on stock availability and carrier contracts and offers.

The iPhone 6 should help grow the Apple user base. Telsyte surveys have shown a third of those intending to buy an iPhone in H2 2014, are currently not using an iPhone (i.e. using a regular phone, Android smartphone, etc).

Second hand and “hand me down” iPhones are expected to also grow the overall user base, an important trend for publishers and app developers alike.

Telsyte predicts phablets (smartphones with screens 5.5 inches or larger) will make up as much as 20 per cent of the overall Australian smartphone market by the end of 2016, with the iPhone 6 Plus an important catalyst.

Premium price will deter some buyers

In today’s world of sub-$300 smartphones, the biggest challenge might be Apple’s local pricing. Of the new iPhone 6 configurations only the iPhone 6 16GB comes in below $999. This might impact demand, particularly for outright purchases (i.e. not on contract or a payments plan). Apple might be creating a new “luxury” category – or maybe “ultra-premium” – given it is going against overall industry downward pricing trends.

High purchase prices also increase the importance of contracts and MRO payment plans, likely to be a key strategy of the carriers to lure customers, amongst other incentives.

The price shock might put off some of those who intended to purchase an iPhone 6. To put it into perspective, an iPhone 6 128 GB (A$1,129) will cost more than a MacBook Air 11” 128 GB (A$1,099).

Wearable Apple one to watch

Telsyte believes there were 380,000 smartwatch users (at the end June 2014) in Australia. Nearly 80 per cent of those smartwatch users were using Android smartphones; therefore the market could substantially grow with the arrival of the Apple Watch. Telsyte believes the Apple Watch will help it retain customers given it will work with the iPhone 5 or later.

Its release in 2015 might be strategic, so as to not affect iPhone 6 sales during the holiday season. It also gives developers time to create their smartwatch apps with WatchKit.

There is still some doubt of the usefulness or long term utility of smartwatches, while they simply remain accessories and not a replacement for smartphones all together.

As a result of the iPhone 6 and Apple Watch launch, Telsyte expects moves from competitors, including aggressive marketing of smartwatches and handsets by Samsung, Sony and others, given Apple’s Watch is not released until 2015.

Telsyte analysts are available for interviews and further commentary:

Foad Fadaghi: +612 9235 5851
Alvin Lee (carrier insights): +612 9235 5890
Rodney Gedda (enterprise): +612 9235 5891

Australian tablet sales drop 28% in first half of 2014; lack of reasons to upgrade holding back market

August 20, 2014

Apple’s iPad outsold by Android-based devices for first time, Windows-based tablets gaining ground

SYDNEY, AUSTRALIA – There were 1.8 million media tablets sold in Australia in the first half of 2014, a 28 per cent decline from the previous six months, according to a new study from emerging technology analyst firm Telsyte.

Following three solid years of growth, the impact of a slowing demand was exasperated with the traditionally slower first half retail cycle. The Telsyte Australian Media Tablet Market Study 2014 reveals longer upgrade cycles are impacting new sales with the market now in a lull as customers wait for a reason to upgrade. Despite this, the population penetration of media tablets increased to 46% or 10.8 million people at the end of June 2014.

The most popular tablet in use remains the iPad 2 which was originally released back in March 2011, and despite its age is expected to be able to run Apple’s latest mobile operating system iOS8, due to be released alongside the new iPhone 6 in September.

Android just outsells Apple, but trend will likely reverse in H2

More Android units were sold for the first time in Australia in the first half of 2014, following global trends despite Australia’s love affair with Apple products.

Apple has retained 46 per cent tablet market share, with the rest market being made up of Android (47 per cent) and Windows-based devices (7 per cent).

Telsyte managing director, Foad Fadaghi, says sales of Android-based units just edged out Apple for the first time in the six months to June 30, but he believes this trend will be reversed in the second half of 2014, restoring Apple’s number one place by year’s end.

“Apple should have a strong second half if it can bring upgraded models to market and benefit from a halo effect created by the iPhone 6 launch” Fadaghi says.

“More than half of iPhone users already have an iPad, whether consumers upgrade both this year will be the question many will be asking” Fadaghi says.

Telsyte surveys are showing greater purchase intentions for iPads overall in H2, and higher repeat purchase intentions by existing iPad users than Android tablet users.

Low-end devices continue to flood the market putting pressure on premium Android tablet sales. And despite Android units outselling iPads for the first time, Android only captured a third of the market in terms of dollar value.

Two million units forecast to sell in H2, as smartphone buying cycle hits.

Telsyte forecasts 2.1 million tablet units to be sold in H2 2014, which will be influenced by a strong smartphone purchasing cycle expected to start in October. Telsyte believes new smartphone sales might delay purchases of new media tablets for many existing users until 2015 and beyond.

“A tablet upgrade cycle might not commence until current devices become more readily obsolete, either in terms of computational capability, operating system, application interoperability, graphics or connectivity,” Fadaghi says, adding the ability to work with wearable devices or sensors might be a driving factor for upgrades.

According to Telsyte, the demand for smartphones is expected to be nearly three times more than media tablets for the second half of 2014*.

Telsyte research has also shown the impact of phablets on the purchase intention of tablets in H2 is marginal (Only 5% less likely to be considering buying a new tablet in H2, if using a phablet currently, compared to standard smartphone users). This might change following the impact of a larger screen iPhone 6.

*https://www.telsyte.com.au/?p=2497 (Telsyte forecast 5.6 Million smartphones will be sold in H2, 2014)

For further information on the study or media inquiries contact:

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

About Telsyte’s Australian Media Tablet Market Study 2014

Telsyte’s Australian Media Tablet Market Study 2014 is a comprehensive study which provides subscribers with:
• Tablet market sizing, platform and vendor market shares and forecasts
• End user trends across devices, services and mobile media
• Purchase intentions
• Discussions on strategic issues including platform and manufacturer trends
• Product reviews and insights
• Tablet audience estimates for media companies

In preparing this study, Telsyte used:
• Financial reports released by mobile carriers, manufacturers and service providers.
• Interviews conducted with executives from mobile operators, vendors, retailers, and channel partners.
• An online survey of a representative sample of Australians 16+ years of age conducted with 1,018 respondents in June 2014.
• On-going monitoring of local and global market and vendor trends.

About Telsyte
Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Our market leading coverage includes mobility, enterprise IT, digital media and telecommunications. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au

Nascent ‘phablet’ market poised for growth as smartwatches and fitness bands join Australia’s smartphone boom

July 2, 2014

SYDNEY, AUSTRALIA – New findings from Telsyte’s Australian Smartphone Market Study 2014-2018 show there were 16 million smartphone users in Australia at the end of June 2014, an increase of 1.1 million over the previous six months.

Both the Android and Apple platforms grew in the first half of this year and together make up 93 per cent of the installed base of users.

While the Australian smartphone market is maturing, some 20 per cent of mobile phone users are still on regular mobile phones. Telsyte expects strong sales in the second half of 2014, driven by new devices and shortening average replacement cycles.

Strong sales expected in the second half of 2014

Telsyte estimates that 5.6 million new smartphones will be sold in Australia during the second half of 2014. The majority of sales will be to existing smartphone users, however, Telsyte estimates around 1.5 million new users will take up smartphones before the end of 2014.

Telsyte Managing Director Foad Fadaghi says the Australian smartphone market is dynamic and still up for grabs.

“Roughly a third of those intending to buy a new smartphone in the second half of 2014 have not decided on the platform they intend to purchase and around a third intend to switch platforms,” Fadaghi says.

Apple retains the highest repeat purchase intentions (70%) while Android has improved to over 60 per cent, closing the gap. Telsyte found Windows Phone 8 uptake remained steady as the lack of handset and brand options impacted faster adoption.

Phablets – or smartphones that Telsyte defines as having a screen size of 5.5 to 6.9 inches – are still a niche market, despite more manufacturers releasing larger-screen devices that blur the line between a smartphone and tablet.

Telsyte believes the phablet market hinges on the entrance of Apple which is expected to launch a 5.5 inch iPhone 6 later this year.

iPhone 6 “phablet” appeals to Australians

Telsyte believes a larger screen iPhone will be a strong strategy if Apple decides to release such a device later this year, and could help it reclaim some lost market share in Australia.

“Some 40 per cent of survey respondents that intend to purchase an iPhone 6 indicated they would only consider it if it has a larger screen,” Fadaghi says.

Telsyte research shows that one in five existing Android users that intend to purchase a new smartphone and are not planning to purchase an iPhone, indicated they would “change their smartphone purchasing decision” if a larger screen iPhone 6 became available.

However it’s not all one way traffic. Telsyte also found that around 10 per cent of those expecting to purchase an Android smartphone are currently using an iPhone.

Furthermore, Telsyte research shows that Android smartphones have now overtaken iPhones as the main devices purchased on contract from carriers, following strong carrier promotions and the reduction in iPhone subsidies.

Smartwatches and fitness bands abound

Telsyte has found that smartwatch adoption is still embryonic in Australia and 80 per cent of smartwatch users pair their devices with Android smartphones. Samsung is the market leader, although the product category might be accelerated with the arrival of an Apple “iWatch” in 2014.

Telsyte research shows that smart fitness bands are more popular than smartwatches. This is due to their lower price points and popularity as a gift. Fitbit is the market leader and only a third of fitness band users currently pairing them with iPhones.

More than 1 million smart watches and fitness bands (combined) have been sold in Australia according to Telsyte research.

For further information on the study or media inquiries contact:

Foad Fadaghi
Managing Director & Principal Analyst
Tel: +612 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

About Telsyte’s Australian Smartphone Market Study 2014-2018

The Telsyte Australian Smartphone Market Study 2014 is a comprehensive study which provides subscribers with:

Smartphone market sizing, platform and vendor market shares and forecasts
End user trends across devices, services and mobile media
Purchase intentions
Discussions on strategic issues including platform and manufacturer trends
Product reviews and insights

In preparing this study, Telsyte used:

Financial reports released by mobile carriers, manufacturers and service providers.
Interviews conducted with executives from mobile operators, vendors, retailers, and channel partners.
An online survey of a representative sample of Australians 16+ years of age conducted with 1,018 respondents.
On-going monitoring of local and global market and vendor trends.

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Our market leading coverage includes mobility, enterprise IT, digital media and telecommunications. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au

Telsyte Releases 3rd Edition of Digital Nation Book

June 25, 2014

Third Edition of Digital Nation book reveals Australians’ changing technology habits at home and work

Telsyte is pleased to announce the release of Digital Nation, an infographic style study book that showcases Telsyte’s leading local consumer and enterprise ICT research.

Digital Nation combines primary research with analyst insight to tell a unique story about how technology is impacting Australians in 2014 and what to expect in the future.

The book gives readers information on how to prepare for digital disruption and technology-led change and provides strategic insight into how the explosion of devices and data will drive new levels of engagement and commerce.

Australians digital lives revealed

Telsyte Managing Director Foad Fadaghi says Australians are increasingly comfortable using and adapting to new technologies.

“Staying connected is now a national pastime – Australians are clearly more dependent on the internet for entertainment and shopping than ever before,” Fadaghi says.

Telsyte research shows more than half the population regularly use Facebook and 58 per cent of Australians regularly use at least one other device while watching Television. Telsyte has found that the average household has nearly 8 connected devices and over a third download 100 GB per month or more via their fixed broadband connections.

Australians are increasingly turning to “post-PC” devices like smartphones and tablets for their personal information management and as a result are increasingly shifting their habits, including entertainment from desktop computers to handheld devices.

Our post-PC activities are not limited to viewing with more of us using smart devices for shopping. In 2013 nearly a third (29%) of people using a smartphone purchased a physical good with their device, with the figure even higher (43%) for tablet owners.

Australians are increasingly comfortable purchasing goods online. This new found comfort has manifested itself in over $20bn spent on eCommerce across 19 consumer categories as measured by Telsyte. Nearly a two-thirds of consumers surveyed indicated they had saved money by buying items online in 2013.

Digital Nation prepares business leaders to take advantage of all this change and how to transform their thinking to avoid being left behind.

This year we will also see how the change of government will impact National Broadband Network coverage, with the immediate decision to create a hybrid network of fibre, copper and satellite. Digital Nation reveals Australians are hungry for faster broadband with most of us willing to upgrade to a faster service when it becomes available.

Digital advancement at work

An exciting development for the third edition of Digital Nation is the introduction of a new business section titled Digital at Work.

As more of our personal technology is used for business with BYO-IT (not just devices, but apps too) and more business applications become accessible to consumers, Australians are in the middle of a work-life balance revolution. Digital Nation looks at how the workplace is transforming to be more accommodating – and productive – for our increasingly technology-enabled workforce.

This phenomenon of by-passing IT is not confined to individuals, as non-IT business units within organisations are increasingly likely to procure IT services, mostly from the cloud, to meet their needs. This is known as “shadow IT” and, like BYO-IT, can help or hinder an organisation managing its information effectively.

Within local organisations, around half of business units like HR, marketing and operations have their own IT budgets. Digital Nation reveals this trend is having a measurable impact on traditional IT departments with 18% of organisations increasing their IT spend believe it is due to non-IT business units buying IT and, more poignantly, a third of CIOs have experienced problems resulting from IT purchasing outside of the IT department.

Telsyte Senior Analyst Rodney Gedda says use of personal device technology in the workplace is now very pervasive with nearly 45 per cent of Australian organisations with more than 20 employees allowing BYOD.

“However, a further 24 per cent of CIOs acknowledge that staff go ahead and do it anyway without permission indicating a strong desire by people to use their own technology for work – inside or outside the office,” Gedda says.

Smartphones (94%) and tablets (85%) are the leading types of personal devices in use for work and sales and marketing and senior management are the leading roles adopting BYOD.

Cloud computing for business continues to grow strongly and Digital Nation reveals the applications most likely to be delivered through the cloud – from e-commerce to project management.

“The cloud is now a mainstream delivery model and presents a real option for local enterprises used to on-premise IT management,” Gedda says, adding important factors like security, integration and TCO do not go away with moving on-premise systems and applications to the cloud.

The combination of smart devices, cloud services and faster networks has led to a rise in remote working with more than 40 per cent of organisations having staff that work from home at least one day per week. Furthermore, 20 per cent of employees work from home at least one day per week within organisations that allow teleworking. Digital Nation also looks at where teleworking is headed and how organisations can improve collaboration with “hot desking” and activity-based environments.

With all the talk about wearable computers for consumers, the business applications of wearables are also exciting and more mature than people realise. Digital Nation reveals how Australian organisations in manufacturing, health and other industries are already using wearable computers and where the technology is headed.

“Smart devices, including wearable computers, generate massive volumes of data which can then be used for business intelligence,” Gedda says. “In the third edition of Digital Nation, we look at how Australian organisations are using big data and what their future plans are.”

The 50 page Digital Nation book covers:

Attitudes to technology
Post PC adoption trends
Smartphones: Android, iOS and other platform trends
Google glass: eyes-down experience searching for an eyes-up solution
Second screens: multitasking while watching TV
Australian e-commerce market
Mobile commerce and app store spend
High-speed broadband and online privacy
Business technology spending branches outside of IT
Bring your own IT
Business looks to clouds for future of IT
Free productivity: remote working
Wearing technology into work
Collaboration challenges business meetings
Business data goes big

Digital Nation, is available for purchase as a printed hardcover book from online bookstore Blurb (US$99+GST excluding delivery) via this URL: http://blur.by/1tXGEdY

Customised books and bulk orders are also available. Contact: info@telsyte.com.au

For further information on the book or media inquiries contact:

Foad Fadaghi
Managing Director
Tel: +612 9235 5851
Twitter: @foadfadaghi
Email: ffadaghi@telsyte.com.au

Rodney Gedda
Senior Analyst
Tel: +612 9235 5891
Twitter: @rodneygedda
Email: rgedda@telsyte.com.au

About Telsyte

Telsyte delivers strategic insights and advisory services to businesses that are producing, or are impacted by, disruptive technologies. Telsyte publishes studies into emerging consumer and business markets and provides custom research and advisory services. Our market leading coverage includes mobility, enterprise IT, digital media and telecommunications. Telsyte is a wholly-owned independent business unit of UXC Limited. UXC is an ASX-listed Australian IT services company and the largest Australian-owned ICT consultancy firm with over 2,500 customer organisations in the private and public sectors across Australasia. www.telsyte.com.au