2016 EMEA Conferencing Endpoints and Infrastructure
Growth Excellence Leadership Award
2016
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 2 “We Accelerate Growth”
Background and Company Performance Industry Challenges
Frost & Sullivan ongoing research reveals that the EMEA video conferencing endpoints and
infrastructure market is faced with the following key challenges:
1. Different UC applications are working in silos: Though vendors are opting to
grow inorganically by acquiring other solutions in the ecosystem in order to offer a
holistic UC portfolio, a vast majority of providers are still offering siloed solutions
and services.
2. Abundant availability of a large number of unequipped huddle rooms:
Recent Frost & Sullivan research finds that the ratio of large conference rooms to
huddle rooms in enterprises is about 1:4. In addition, huddle spaces vary widely in
size and physical characteristics (lighting, privacy, seating arrangements, etc.),
which precludes a one-size fits all approach to outfitting huddle spaces with video
conferencing equipment. Rather, there is a high requirement for an all-in-one lean
and flexible video conferencing setup - rather than comparatively complex
traditional outfitting.
3. Cost of deployment, operations and management of on-premise
infrastructure: The cost of deploying an on-premise MCU (multipoint control unit)
is significantly higher than cloud video conferencing services. Additionally,
customers are faced with the huge burden of ensuring interoperability and service
uptime across all video endpoints in their organization.
Frost & Sullivan notes that a growth excellence leader successfully addresses these
industry challenges by striking a balanced approach to meet customer demands. As such,
this growth excellence leader is well positioned to stand out and thrive in the competitive
marketplace.
Growth Performance and Customer Impact of Huawei
Growth Strategy
Huawei is a leading ICT solutions provider with a competitive ICT portfolio of end-to-end
solutions in telecom and enterprise networks, devices, and cloud computing. The
company’s core business segments include Carrier, Enterprise and Consumer – each of
which grew significantly in terms of global revenue in 2015. Video conferencing is a sub-
segment of enterprise and grew 10.1% in revenue terms and 23.8% in terms of
shipments globally in 2015. Huawei’s executive leadership team has introduced several
organic growth initiatives to achieve this growth.
First, the company’s growth can be attributed to its comprehensive video conferencing
portfolio, which offers customers tremendous flexibility and customization options for
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 3 “We Accelerate Growth”
different conference room environments – from large meeting rooms to huddle spaces.
Huawei’s video conferencing portfolio includes:
1. Telepresence - Immersive Telepresence – Max Presence, TP3206-55, TP3106-70;
Room Telepresence – RP100, RP200
2. Video conferencing endpoints - TX50, TE40/TE50/TE60 ; All-in-One endpoint -
TE30/TE20/TE10
3. Executive systems - DP300, TE Desktop, TE Mobile
4. Video peripherals- VPC800, VPC 600 /VPC 620, VPM 220 series
5. MCU – VP9660, VP9650, VP9630
6. Others - Management system - SMC2.0/ Media X; Recording - RSE6500, Switch
Center
Frost & Sullivan monitors how Huawei’s consistent product launches have greatly
accelerated its growth. In 2015, Huawei launched the TX50, which adopts H.265
technology to deliver video experience at ultra-low bandwidth consumption. Another
product called DP300, which is an executive system, was also launched in 2015. It is an
all-in-one device comprising a codec, camera, microphone, speaker, and touch screen.
Both devices are based on Huawei’s patented super error concealment technology, which
ensures good video quality (even at a packet loss of 20%). Both endpoints provide 1080P
video resolution at 60 frames per second and enable wireless connectivity.
Second, Huawei remains at the forefront of technological innovation by leveraging its
state-of-the-art R&D facilities. In 2015, it invested around 15% of its sales revenue in
R&D. Innovation is a key factor to attain growth in every market; in the mature video
conferencing, it is quite critical to invest in R&D systematically to gain competitive
advantage.
Finally, Huawei has a well-structured partner strategy that corroborates its vision of
establishing a better-connected world. In the channel partner field, Huawei has
orchestrated a global channel ecosystem and performed in-depth cooperation with
distributors, value-added partners (VAPs), global partners, carriers, and tier-2 channel
partners. For example, by the end of 2015, Huawei EBG increased the total numbers of
global channel partners and solution partners to over 8,000 and 350 respectively. Huawei
has also established partnerships with T-System (Deutsche Telekom) and Vodafone Global
Enterprise in the enterprise ICT field. Frost & Sullivan recognizes that Huawei’s video
conferencing partner strategy is truly non-conflicting, and margins are designed in such a
way that it is a win-win situation for all parties involved.
Above-Market Growth
Video conferencing is one of the fastest growing segments within Huawei’s portfolio. While
the mature EMEA video conferencing endpoints market grew by 9.9% in 2015, Huawei
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 4 “We Accelerate Growth”
considerably outperformed the market by achieving a growth rate of 22.3%.
To keep in tune with the market shift to cloud and to stay ahead of the market demand,
Huawei has launched Cloud MCU and cloud video conferencing endpoints in H2 2016.
These new products collaborate with each other to ensure smooth cloud-device
collaboration, allowing enterprises to gain tangible benefits from cloud communications.
Growth Sustainability
At the Huawei Global Analyst Summit 2016, Huawei expressed its objective to march
towards an “All Cloud” future. As a result, all products and solutions will be delivered on
the cloud. This resonates well in the video conferencing space, as it aligns with the market
shift to emerging cloud services that are scalable and affordable from on-premise
infrastructure. Frost & Sullivan expects these cloud services to boost further investments
in endpoints.
To execute on this strategy, Huawei partnered with Videxio, a leading Norway-based cloud
video conferencing service provider. As a result, Videxio extends fully automated support
including plug and play activation, unique URL, global QOS video network, native
interoperability, high security, and call quality monitoring to users of Huawei’s video
endpoints. Other notable cloud video conferencing service provider partners include Zoom,
BlueJeans, Starleaf and Mida in overseas, and EICG, Cloudtp in china.
In addition, Huawei launched Cloud MCU services in Q3 2016. Cloud MCU is a virtualized
platform on a distributed network. It provides elastic scalability and flexibility to integrate
a variety of software video clients with existing video endpoints and infrastructure
components. Huawei also launched cloud endpoints (such as TE10 and TE20) in Q3 to
sync up with cloud MCU. With the all-in-one architecture, TE10 integrates six functional
modules (HD camera, codec, microphone, speaker, Wi-Fi & Bluetooth, and Foldable
Bracket) into one box and is expected to be targeted at small-sized conference rooms;
TE20 is targeted at small and medium sized conference rooms. Both TE10 and TE20
enable integration with third-party cloud platforms.
Growth Diversification
Huawei plans to achieve organic growth with the help of its eSpace UC platform. This is a
fully cloud-enabled enterprise product offering that includes voice, video, voice mail,
console, unified messaging, conferencing, directory, and presence. eSpace is built on an
open architecture with application programming interfaces (APIs) and software
development kits (SDKs), and offers developers and resellers further scope for value
addition. This platform provides communication-enabled business processes by tightly
integrating with enterprise’s business applications to deliver converged solutions. Huawei
plans to deliver this solution through channels that could host it as a UCC service, or
deploy the solution at the customer’s premises.
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 5 “We Accelerate Growth”
Huawei has consistently demonstrated that it has a solid roadmap to drive organic growth
and margins, and that the company can complement this organic growth with a disciplined
partnership strategy that promotes its reach in enterprises and helps gain considerable
mindshare.
Customer Ownership Experience
Huawei aims to provide exceptional video quality, blending excellent product design with
superior video processing capabilities. An illustration of this approach is the company’s
video implementation for EDP (Energias de Portugal), a leading energy producer in
Europe. Huawei’s video conferencing endpoints and video-as-a-service proved to be the
best fit for EDP’s requirements of connecting its 12,000 employees over video across
meeting rooms, smartphones, and tablets. Huawei – along with Tecnocom, a highly
experienced system integrator in Europe – helped EDP to replace its legacy video
conferencing systems with Huawei’s terminals across 255 large and small conference
rooms. The ability of Huawei’s endpoints to seamlessly integrate with Microsoft Lync
protects the company’s investments in the Microsoft ecosystem. As part of a 4-year
contract video-as-a-service, Tecnocom extended its network operation center (NOC)
services to monitor EDP’s network 24X7.
In its position at the cutting edge of technological innovation, Huawei serves to reinforce
better video conferencing experience across users at distributed locations, utilizing
different endpoints across a range of platforms.
Brand Equity
Huawei is a well-established brand in the carrier network infrastructure space and for its
consumer terminals (handsets) worldwide. Riding on this popularity, the company has
found a sweet spot in the enterprise space and in the video conferencing market
specifically. Huawei is known for its video clarity based on Adaptive Definition
Enhancement (ADE) technology and Accurate Color Restoration (ACR) technology.
Through an extensive research in video, Huawei delivers 4K Ultra-HD (High Definition)
video experiences to customers. Its research in H.265, the next-generation video coding
technology for future video, accentuates its brand name as a technology enabler in the
video conferencing industry.
Conclusion
Huawei has been a remarkable pioneer and leading innovator in the video conferencing
industry for the last few years. The company continues to develop innovative video
conferencing solutions and remains focused on delivering even greater value for its
customers and partners worldwide. Huawei’s complete product line of video conferencing
systems, strategic focus on innovation and product line expansion, and large channel
partner network will help the company to gain greater customer mindshare in the video
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 6 “We Accelerate Growth”
conferencing market in EMEA. With its strong overall performance, Huawei has earned
the 2016 Frost & Sullivan Growth Excellence Leadership Award.
Key Benchmarking Criteria
For the Growth Excellence Leadership Award, Frost & Sullivan analysts independently
evaluated two key factors—Growth Performance and Customer Impact—according to the
criteria identified below.
Growth Performance
Criterion 1: Growth Strategy
Criterion 2: Above-Market Growth
Criterion 3: Share of Wallet
Criterion 4: Growth Diversification
Criterion 5: Growth Sustainability
Customer Impact
Criterion 1: Price/Performance Value
Criterion 2: Customer Purchase Experience
Criterion 3: Customer Ownership Experience
Criterion 4: Customer Service Experience
Criterion 5: Brand Equity
Growth Performance
Criterion 1: Growth Strategy
Requirement: Executive team has a shared vision for the organization’s future growth,
and has created and implemented a strategy that is consistent with that vision
Criterion 2: Above-Market Growth
Requirement: Company’s growth rate exceeds the industry’s year-over-year growth rate
Criterion 3: Share of Wallet
Requirement: Customers allocate a greater percentage of their total spend to purchasing
products or services produced by the company
Criterion 4: Growth Diversification
Requirements: Company is equally able to pursue organic (e.g., distribution channel
optimization, new product innovation) or inorganic (e.g., acquisitions, partnerships)
growth opportunities consistent with the long-term objectives of the organization
Criterion 5: Growth Sustainability
Requirement: Company has consistently sought out opportunities for new growth,
enabling the organization to build on its base, and sustain growth over the long-term
Customer Impact
Criterion 1: Price/Performance Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market
BEST PRACTICES RESEARCH
© Frost & Sullivan 2016 7 “We Accelerate Growth”
Criterion 2: Customer Purchase Experience
Requirement: Customers feel like they are buying the most optimal solution that
addresses both their unique needs and their unique constraints
Criterion 3: Customer Ownership Experience
Requirement: Customers are proud to own the company’s product or service, and have a
positive experience throughout the life of the product or service
Criterion 4: Customer Service Experience
Requirement: Customer service is accessible, fast, stress-free, and of high quality
Criterion 5: Brand Equity
Requirement: Customers have a positive view of the brand and exhibit high brand loyalty
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth
and achieve best in class positions in growth, innovation and leadership. The company's
Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best practice models to drive the generation, evaluation and implementation
of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 31 offices on six continents.
Top Related