In March 2017, Vbrick partnered with industry analysts Frost & Sullivan to develop a white paper, “Live Video Streaming: The Next BYOD for the Enterprise,” analyzing the burgeoning enterprise video market opportunity – its estimated size, market drivers, applications and the changing nature of the workforce further heralding its broad adoption. The following blog is one of four excerpts – the complete white paper can be downloaded here and the recorded webcast can be viewed here.
Enterprise Video Growth Drivers
Frost & Sullivan defines an enterprise video platform as a complete end-to-end solution that enables enterprises to ingest, transcode, store, manage, protect and publish both live and on-demand video for internal use. By definition, we do not include the use of video by marketing departments for B2C communications, fully-managed webcasting service offerings, lecture capture solutions used by educational institutions, or solutions employed by the media and entertainment industry, wherein video is directly tied to monetization and revenue.
Accounting for more than two-thirds of market revenue, large enterprises, especially those headquartered in North America and Western Europe, lead the way for enterprise video adoption. However, their share of the pie has been declining over the past two years with SMB deployments of enterprise video fast gaining momentum. For SMBs that have to function in stringent regulatory environments, the need for compliance trainings and collaboration across two-to-three dispersed office locations drives adoption of EVP solutions. At the same time, few members of the vendor community – tailor scalable offerings at attractive price points – resulting in uptick in demand. In just two years, 2013 to 2015, the market share of EVP deployments in SMBs increased from 12% to a whopping 30%.
Across every major industry vertical, enterprise video continues to become more pervasively used. According to Frost & Sullivan research, financial services firms account for close to 15% of total market revenue, and form the largest vertical adopters of enterprise video solutions. In this heavily regulated sector (major commercial banks, insurance companies, investment banks, brokerage firms, mutual funds and buyer side institutions), compliance training requirements drive large amounts of enterprise video usage. Business and technology services firms and healthcare organizations follow in second and third spot. In the healthcare industry, video in surgical suites and hospital rooms is used to enhance training and knowledge sharing initiatives. At mid-sized and large businesses, and technology services firms, enterprise video drives corporate communication, training and employee town halls. Life sciences companies utilize video to collaborate on clinical development, trials and drug commercialization.
EVP deployments are becoming increasingly common in industries undergoing financial downturns or those witnessing consolidation. Enterprise video is considered an important medium using which leadership disseminates a unified corporate message and delivers time sensitive crisis communications in the event of a merger or acquisition.
In sectors like manufacturing where employee churn is a critical challenge, enterprise video solutions help bring new hires up to speed by delivering training and on boarding from the right subject matter experts despite the distances between various outfits, creating a well-trained workforce, decreasing downtime and eliminating travel related expenses. For multi-location retail companies, video snippets about products are often a great way to drive competitive edge and influence the customer decision-making process, translating directly into top line revenue.
Read more, download the complete white paper here and view the full webcast recording here.