What ShoreTel’s Entry Means To India’s UC Market

by Preeti S    Sep 26, 2014


Voice-based solutions hold a significant share of revenues in India’s unified communication market. With emerging technologies, enterprises are increasingly opting for unified communications, which in turn is leading to its dominance in the market. The fundamental technologies driving the market are affordable and ease-of-use communication solutions.

According to 6Wresearch, India’s unified communication market is expected to reach $1,506.2 million in 2018, at a CAGR of 12.4% from 2013-2018.

That offers the promise of growth for new players in the market like ShoreTel Inc, a US- based unified communications solutions provider, which set up an office in Bangalore as part of its expansion plans in APAC.

The entry of ShoreTel, which already has a mature product line, is expected to enhance competition in India. “Our team will be working closely with their counterparts around the world, to enable us to continue to provide innovative solutions that meet the needs of our customers worldwide,” said Don Joos, President and CEO of ShoreTel, who is confident of leveraging India’s world-class technical team to support their next-gen products.

While India’s talent pool is what attracts global solution provider, there is a need to identify the right trends and innovation opportunities.

Basically, UC is the convergence of multiple communications technologies like text, voice, video communications into a single solution. As BYOD has become an accepted phenomenon, offering anytime-anywhere work opportunities, the workforce is looking for easy communication methods and enterprises are in need of cutting-edge and cost effective solutions.

That makes simplifying communications an essential part for enterprises, who want to optimize operational expenses. 

Dileep Nadimpalli, Senior Market Analyst, Unified Communications at IDC India, is optimistic that deployment of bundled UC solutions like web-hosting and video-conferencing are expected to evolve in SMB Segment.

According to IDC, the Unified Communications and Collaboration market in India saw a marginal growth of 3.8% in 2013 as compared to2012. The modest growth was attributed to the shift from hardware-based to software-based unified communication solutions. 

The Gartner 2013 UC Magic Quadrant shows that the UC market is maturing and believes that products and best practices of UC both for deployment and increasing end-user adoption will continue to mature during the next several years, and it would be the evolution of the mix of premise and cloud options.

It says that more is required here and the trends toward seamless choices between premise, hybrid and cloud options are shown by reference to programs at Avaya, IBM, Microsoft, Mitel, and ShoreTel, which are building their UC businesses as add-ons to a core telephony business.

India being a cost-sensitive market, the pricing of products needs to be in line with consumers. As analysts are bullish on the UC market, it might be a positive indication that India is gradually turning into a quality driven market. When asked about some companies offering VoIP devices for less than $50, FredericGillant, ShoreTel’s V-P and MD, APAC, said, they would continue to focus on providing quality products.