This Frost & Sullivan research service titled World Enterprise FMC Markets provides enterprise communication vendors with a detailed look at the dynamics of a changing market. It identifies industry challenges, market drivers, restraints, competitive landscape, revenues, market shares and key market trends within the world enterprise fixed-mobile convergence (FMC) market. The study places emphasis on advanced, premise-based FMC solutions, and provides in-depth insights to FMC solution vendors and other communication providers. In this research, Frost & Sullivan's expert analysts thoroughly examine the following: PBX-to-mobile extensions, FMC clients, dual-mode technology, mobile unified communications (UC), unlicensed mobile access (UMA), carrier FMC, enterprise FMC, and mobile presence – among others.

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Market Overview

Continued Partnerships Pave the Way for Next-generation Enterprise FMC Solutions

FMC solutions have become one of the most promising and sought-after technologies by IT departments. While the state of the economy has severely affected purchase decisions related to different communications technologies, the cost and productivity benefits offered by enterprise FMC solutions have considerably defused the negative effects on this segment. Prominent drivers for the uptake of enterprise FMC solutions are escalating mobile costs, poor in-building coverage, the need to enhance productivity, and the desire to integrate enterprise capabilities and applications with mobile communications. “The year 2008 witnessed the materialization of different advanced enterprise FMC solutions into the market as well as considerable growth of real commercial deployments,” notes the analyst of this research service. “Continued joint developments, a growing number of partnerships, and further technology enhancements represented some of the main axes of market evolution throughout the year.” Enterprise FMC providers are learning to co-exist, and it will not take much longer for these vendors to acknowledge the long-term benefits of broader partnerships and joint FMC marketing to end users. In 2008, Frost & Sullivan estimated the overall worldwide shipment of enterprise handset units with an FMC solution to have reached 2.67 million activated FMC solutions in mobile devices – a 230 percent year-over-year growth!

Productivity remains high on the agenda of most companies that are adopting enterprise FMC solutions today, and cutting mobile expenses is a key concern. According to Frost & Sullivan, FMC solutions can provide savings of at least 10 to 20 percent on the monthly mobile bill. Enterprise FMC solutions (including PBX-to-mobile extensions, mobile UC and voice dual-mode roaming) offer tangible benefits to mobile workers and present potent opportunities for vendors and other market participants. While basic PBX-to-mobile extensions dominate the world installed base and current shipment numbers, 2008 saw the proliferation of both advanced premise-based FMC clients and alternative FMC solutions coming from different market participants such as UC vendors, fixed carriers, cellular carriers, and handset manufacturers. “The market has arrived at the conclusion that there is no single right path to enterprise FMC, but multiple solutions and FMC alternatives attuned to customer needs and requirements,” notes the analyst.

While mobility continues to evolve and growth opportunities multiply within the enterprise FMC market, the combination of a few factors could restrain profit margins over the years. Firstly, the current economic downturn can lead to de-prioritization of costly FMC solutions in procurement decision-making. Advanced FMC offerings are still considered expensive solutions by many enterprises, which prefer to take a cautious, wait-and-see approach. “Another major challenge has been the absence of complete support and integration among FMC participants,” says the analyst. “FMC vendors are under pressure to ensure their solutions support and integrate with a large variety of platforms, devices, and mobile operating systems available in the market.” Vendors must prepare the court for next-generation enterprise FMC solutions by providing broad device support, and evidence of a compelling return on investment. Creating multiple financing options, clearly communicating what is on offer, and establishing partnerships to expand presence and enlarge overall FMC portfolio are also crucial to gaining a competitive advantage.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:

By Vendor:

• IP telephony solution providers
• Independent FMC vendors
• Handset vendors
• Service provider

Technologies

The following technologies are covered in this research:

• Dual-mode smartphones
• VoWi-Fi
• VoWLAN
• Mobile UC technologies
• PBX-to-mobile extensions

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