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UC&C in the cloud market in Latin America began around 2008 to 2009
Unified Communications and Collaboration (UC&C) in the Cloud in Latin America - a new market research report on 2014-04-11 22:13:03
The UC&C in the cloud market in Latin America began around 2008 to 2009 with certain vendors developing private clouds for large enterprise customers. These deployments were on-premises (not hosted in a third-party data center), designed for enterprises with distributed offices (branches).
The benefits included centralized management of business applications and cost savings pertinent to investing in 1 data center as opposed to rolling out many small data centers across multiple sites. As enterprises began familiarizing themselves with this model, vendors and service providers started forming alliances to best capture this market.
Service providers invested in their data centers and started offering hosted Internet protocol (IP) telephony and later incorporated advanced UC&C applications -- instant messaging, presence, and conferencing, among others. In parallel, vendors developed solutions specific to the needs of the rising small and medium business (SMB) segment as well as made their solutions compatible for virtualized environments.
The first customers to adopt hosted UC&C were enterprises had already deployed private cloud architectures on-premises, giving rise to hybrid cloud models. These organizations had some applications (mission critical) running on a private cloud and others (not mission critical) hosted in a third-party data center.
In 2013, the most common architecture was a hybrid cloud, a condition that will not change rapidly, as there are still corporate-culture inhibitors and technological limitations impeding the rise of pure hosting. Moving forward, it is unclear if pure hosted is the direction the market is taking, as enterprises in some verticals (e.g., financial institutions and government) are legally bound to keep certain data on-premises.
Most vendors in this market insight affirmed that mid-2012 and 2013 was when hosted UC&C started gaining traction in Latin America. Some vendors are more advanced then others in their commercial offering, working with multiple service providers and partners in several countries, while others have a significantly smaller footprint.
The actual installed base for hosted UC&C is still a fraction of the on-premises UC&C market, with some participants ranging from a few thousand to a couple hundred thousand active licenses. Not all vendors have a consistent hosted UC&C offering globally, as Latin America is usually a year or two behind what happens in North America and Europe.
In the case of one prominent UC&C vendor that works with a leading service provider in several countries in Latin America, the functionalities offered for hosted UC&C vary among countries. This is not a technology-related issue, but rather concerns the business model that the service provider has chosen per country. However, market participants are still defining their strategies Within the countries where vendors sell their solutions, they usually work with 1 or 2 service providers/partners to offer hosted UC&C because the market is nascent.
Most vendors are talking with other service providers and partners to expand their reseller community in the region. In terms of licensing, the 2 models that vendors offer are pay-as-you grow (actual licenses sold) or pre-pay (the reseller purchases a bundle of licenses in advance, even if they are not sold). In the case of the former, vendors lease the license, while in the 2nd scenario, the service provider/partner acquires the license and can resell it as many times as it wants.
Currently, service providers/partners are required to purchase the solution from the vendor. However, some vendors are considering absorbing that cost to attract more resellers. The market is embracing this model, and there is a large growth opportunity for vendors.
The Cloud UC&C market in Latin America is in its nascent stage, and there is still important work to be done by vendors and the reseller community to raise awareness and understanding around this topic. It is particularity important that during this nascent stage, vendors and service providers position their brand within a enterprise segment that is still forming their opinions around cloud (solutions and vendors).

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