Mexican enterprises, SMBs turn to UCC products, says Frost & Sullivan

UCC revenues in Mexico could double over next five years
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Revenues from the sale of unified communications and collaboration (UCC) products in the Mexican market could double over the next five years, predicts Frost & Sullivan.

The research firm said the sale of VoIP and videoconferencing products in Mexico will spur UCC revenues as firms look to replace legacy communications systems. UCC revenues could increase from $273.3 million last year to $478.2 million in 2018.

"Employees demand communication and collaboration tools that are similar to or better than what they are familiar with outside work. With the proliferation of smartphones and tablets, mobile UC applications that enable enterprises to meet employee needs are fast becoming popular," observed Francisco Rizzo, research analyst with Frost & Sullivan.

Rizzo noted that there is a greater awareness of UCC benefits among large Mexican firms, and there are efforts by UCC vendors to expand their channel partnerships and improve communications infrastructure. Competition to secure large enterprise customers is increasing among UCC vendors, he added.

On the small and medium business (SMB) side, cloud-based UCC products are taking hold, spurred by the lower up-front costs of a cloud-based solution versus an on-premise system.

"To remain competitive, participants must look for new sales opportunities and develop strategies to cater to the needs of the untapped SMB market in particular. It is essential to build UCC systems that also offer cloud-based solutions," noted Rizzo.

The North American Free Trade Agreement (NAFTA), which reduces trade and investment barriers among the United States, Mexico and Canada, is no doubt helping U.S.-based UCC vendors make in-roads to the Mexican market.

For example, Patton, a Maryland-based supplier of VoIP equipment, saw its sales to Mexico and Canada double between 1992 and 1994 as a result of NAFTA, according to a report by TMCnet. That growth has continued, as the company averaged more than $1 million in annual sales to Mexico and Canada between 2000 and 2011.

For more:
- see the Frost & Sullivan release
- read the TMCnet article

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