41% of enterprise communications app users to migrate to cloud by 2016

In the rapidly evolving enterprise communications market,
CPE vendors confront imminent erosion in their installed base as cloud services
gain traction across the public, private, and hybrid cloud domains. By 2016, 41
percent of all enterprise communications users, or 386 million lines/seats,
will be on virtual infrastructure, posing a serious danger to the CPE market,
according to ABI Research.

For CPE vendors, the cloud threat is real,” said Subha
Rama, senior analyst, ABI Research.

By 2016, the communications CPE market will only grow
4.3 percent, while cloud communications will grow by over 21 percent, reaching
$8 billion in revenues,” Rama added.

Smaller vendors with point solutions will see cloud
services rapidly displace their installed bases. Large vendors are becoming
cloud providers or key enablers as well. However, many of the CPE solutions are
simply not cloud ready and will see performance downgrades when virtualized.

There are three prominent forces influencing cloud
migration: The growing adoption of data center architectures and virtualization
technologies, The need to integrate multiple applications to deliver the
connected experience to users across different devices, including smartphones
and media tablets and The promise of lower costs and increased efficiencies
from standardized platforms and processes in the cloud

Enterprises are adopting a non-linear approach to cloud
migration; while certain applications undergo experimentation, others are
retained on premises. Mixed environments and hybridization are becoming the
norm, especially with larger enterprises.

However, the technology to manage hybrid clouds and to
enable seamless movement of applications instances across different vendor
clouds is in its infancy.

Enterprise mobilization is also driving migration to the
cloud. Cloud applications ease application delivery for businesses that are
increasingly relying on access across fixed and mobile endpoints,” said Dan
Shey, practice director, ABI Research.

By Telecomlead.com Team
[email protected]