Infrastructure A Must For Multimedia, Says Study

by CXOtoday Staff    May 16, 2006

A study by Frost & Sullivan has revealed that application and media service infrastructure equipment would be crucial for the growth of new multimedia service technologies, such as Internet Protocol multimedia subsystem (IMS) and mobile convergence, as also for meeting basic requirements for low-cost telephone services that use IP technology.

The World Media and Application Server Markets earned revenues of $246.3 million in 2005 and estimates that this could eventually reach $1.76 billion in 2012, said the study.

“The Voice over Internet Protocol (VoIP) market is being driven by a need for lower-cost services as well as convergence with other technologies such as multimedia and wireless,” remarked Frost & Sullivan Research Analyst Shirley Hunt.

VoIP service vendors like to pursue upgraded processes at reasonable pace, thereby ensuring minimum disruption for current services while at the same time simultaneously maintaining market share.

A massive base of legacy equipment in carrier networks coupled with a lack of knowledge pertaining to IP technology would be a source of concern for vendors of application and media server infrastructure equipment.

Corporations have expensive legacy private branch exchange (PBX) systems that eventually do not support VoIP, and it is also difficult for convincing them to replace systems with equipment supporting IP communications. This would then eventually slow penetration of VoIP equipment in existing carrier networks, which in turn would obstruct growth of application and media server infrastructure equipment.

“Carriers and service providers must upgrade the voice network in stages, which would minimize disruptions for customers,” explained Hunt.

The study concluded that media and application server vendors should focus on extensive interoperability testing and offer support for legacy systems. These platforms eventually support current and next generation applications and services, which would consequently increase sales of VoIP carrier infrastructure equipment.