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WebRTC and CloudRTC Platforms: Communications as a Feature Product Image

WebRTC and CloudRTC Platforms: Communications as a Feature

  • Published: February 2014
  • 87 Pages
  • Smith's Point Analytics
Vendors Supporting Easy In-App Communications Will Generate $4.7 Billion USD In Revenues By 2018

According to the report, 56% of mobile developers are currently or are interested in integrating communications into their applications. Based on a survey of 627 developers executed in partnership with Developer Media, more than half of mobile developers either currently have or want communications services such as messaging, voice or video as a feature of their applications.

This report defines and forecasts the market for Cloud RTC Platforms or tools that enable web and mobile developers to integrate messaging, voice, and video calling into their applications.

The report includes:

- Survey of mobile developers designed to provide insight into requirements for in-app communications services.
- Five year market forecasts segmented by communications service and region.
- Market players and competitive differentiators
- Market structure, growth drivers, and adoption barriers

1.0 Market Definition
1.1 WebRTC
1.1.1Importance of WebRTC and communications platforms
1.2Market Structure
1.2.1 Start-up Cloud RTC Platforms
1.2.2 Carrier Developer Programs
1.2.3 Gateway Vendors

2.0 Market Drivers and Barriers
2.1 Market Drivers
2.1.1 Ability to Integrate Context with Communications Supports New Experiences
2.1.2 Changing Communications Value Chain
2.1.3 Need to Bring Together Web and Telecom Developers within the Innovation Layer
2.1.4 Rouge IT
2.1.5 Emergence of WebRTC
2.1.6 Virtual PBX Driving Demand
2.2 Market Barriers
2.2.1 Challenge Working With Operators
2.2.2 Limited Innovation
2.2.3 Lack of Universal WebRTC Support
2.2.4 Build Your Own Communications System
2.2.5 Limitations of Existing Infrastructure for True Interoperability

3.0 Applications Opportunities, and Use Cases
3.1 mHealth
3.2 Automotive
3.3 Customer Engagement
3.4 Social Networking and P2P Community Marketplaces

4.0 Marketing Strategy and Business models
4.1 Business Models
4.2 Penetration Strategies

5.0 Competitive Analysis
5.1 Competing Approaches to Rich Communications
5.1.1 APIs vs. Telecom Framework/Platform
5.1.2 RCS vs. Cloud RTC Platforms & WebRTC vs. Flash
5.2 Differentiators
5.2.1 Quality of Service
5.2.2 SDK or No SDK
5.3 Leading Vendors Feature Comparison
5.4 Future Competition
5.4.1 Coopetition between Infrastructure and cloud platforms
5.4.2 Coopetition with SMS Gateways/ Wholesale Messaging

6.0 Forecasts
6.1 Revenue Forecast
6.2 Developer Forecast
6.3 Regional Forecast
6.4 Forecast Methodology

7.0 Developer Survey
7.1 Survey Demographics
7.1 Demand for In-App Communications
7.3 Communications Services Demand
7.4 Business Models
7.5 Competitive Analysis
7.6 Developer Challenges and Requirements
7.7 WebRTC

8.0 Future Outlook
8.1 Short Term
8.1.1 Falling prices
8.1.2 Cloud Platforms and Infrastructure Vendors Partner and Finely Solve the Cross-Operator Problem
8.1.3 Tropo and Nexmo Well Positioned
8.1.4 Significant Competition Between Cloud RTC Players With Limited Telecom Integration
8.1.5 Business Case needs to be fleshed out
8.2 Long-term outlook
8.2.1 Developers Influence Will Grow at the Expense of Operators but Traffic Will Grow
8.2.2 WebRTC and Cloud RTC Platforms will Drive Disruption Across Closed Ecosystems

9.0 Key Take Aways

10.0 Profiles
10.1 AT&T
10.1.1 Company Overview
10.1.2 Product
10.1.3 Competitive Advantage
10.1.4 Competitive Challenges
10.2 Ericsson
10.2.1 Company Overview
10.2.2 Products
10.2.3 Competitive Advantage
10.2.4 Competitive Challenges
10.3 Genband
10.3.1 Company Overview
10.3.2 Products
10.3.4 Competitive Advantage
10.3.5 Competitive Challenges
10.4 Layer
10.4.1 Company Overview
10.4.2 Product
10.4.3 Competitive advantages
10.4.4 Competitive challenges
10.5 Nexmo
10.5.1 Company Overview
10.5.2 Product
10.5.3 Competitive advantages
10.5.4 Competitive Challenges
10.6 Tropo
10.6.1 Company Overview
10.6.2 Product
10.6.3 Competitive Advantage
10.6.4 Competitive Challenge
10.7 Twilio
10.7.1 Company overview
10.7.2 Product
10.7.3 Competitive Advantage
10.7.4 Competitive Challenges

List of Figures

Figure 1 – Cloud Telephony Applications Architecture
Figure 2 – Pre - Smartphone Value Chain
Figure 3 – Post – Smartphone Value Chain
Figure 4 – Post - OTT Value Chain
Figure 5 – Innovation Layer in Mobile Value Chain
Figure 6 – Biggest Challenges in Implementing RTC in Mobile Apps Identified by Mobile Developers
Figure 7 – Mobile Developers Opinion of WebRTC
Figure 8 – Preferred cloud RTC business models by developers
Figure 9 – Price elasticity for premium quality of service
Figure 10 – Future and Current Competitive Landscape
Figure 11 – Cloud RTC Platforms Market Forecast: 2013-2018
Figure 12 – Cloud RTC Platforms Market Forecast Segmented by Communications Service: 2013-2018
Figure 13 – Developers Integrating Communications into their apps Segmented by Communications Service: 2013 -2016
Figure 14 – Cloud RTC Platforms Market Forecast Segmented by Region: 2013-2018
Figure 15 – Cloud RTC Platforms Voice Service Revenues Forecast Segmented by Region: 2013-2018
Figure 16 - Cloud RTC Platforms Messaging Revenues Forecast Segmented by Region: 2013-2018
Figure 17 - Cloud RTC Platforms Video Revenues Forecast Segmented by Region: 2013-2018
Figure 18 – Survey Respondents Segmented by Region
Figure 19 – Survey Respondents Segmented by Income from Apps
Figure 20 – Survey Respondents Segmented by Development Skills
Figure 21 - Survey Respondents Segmented by Type of Organization Employing Developer
Figure 22 – Types of Applications Developed by Survey Respondents
Figure 23 – Developers Use and Interest in In-App Communications
Figure 24 – Developers Use and Interest in In-App Communications Segmented by Developer Type
Figure 25 - Developers Use and Interest in In-App Communications Segmented by App Type
Figure 26 - Developers Use and Interest in In-App Communications Segmented by Region
Figure 27 – Developer Use and Interest in In-App Voice
Figure 28 - Developer Use and Interest in In-App Messaging
Figure 29 - Developer Use and Interest in In-App Two Way Real-Time Messaging
Figure 30- Developer Use and Interest in In-App Video Calling
Figure 31 - Developer Use and Interest in In-App Services Comparison
Figure 32 – Process Used to Integrate In-App Communications
Figure 33 - Process Used to Integrate In-App Communications Segmented by Development Expertise
Figure 34 – Preferred Business Model for Consuming In-App Communications
Figure 35 – Premium Willing to Pay for Improved Quality of Service for In-App Voice
Figure 36 –Premium Willing to Pay for Improved Quality of Service for In-App Messaging
Figure 37 - Premium Willing to Pay for Improved Quality of Service for In-App Video Calling
Figure 38 - Premium Willing to Pay for Improved Quality of Service; Comparison
Figure 39 – Survey Respondents Using Cloud RTC Solution
Figure 40 – Survey Respondents Expecting to Use Cloud RTC Solution in Next 12 Months
Figure 41 – Survey Respondents Familiar with Cloud RTC Solutions
Figure 42 – Survey Respondents Who Have “Never Heard” of Cloud RTC Vendors
Figure 43 – Challenges in Implementing In-App Communications
Figure 44 – Telephony Features Survey Respondents Have Integrated Into Their Apps
Figure 45 - Telephony Features Survey Respondents are Interested in Integrating into Their App.
Figure 46 – Survey Respondents Adoption of WebRTC
Figure 47 – Survey Respondents Opinion on Barriers to WebRTC Adoption
Figure 48 – Preferred Business Model Segmented by Demand for In-app Communications

List of Tables

Table 1 – Cloud RTC Platform Start-ups
Table 2 – Operator Cloud RTC Partners and Acquisitions
Table 3 – WebRTC Gateway Offerings
Table 4 – Browsers WebRTC Support Matrix
Table 5 – Cloud RTC Platform Feature Comparison Matrix
Table 15 – Development Approach Segmented by Mobile Development Experience

Disruption in the communications ecosystem is creating a market opportunity for Cloud Real-Time Communications (RTC) platforms. We expect this market to represent a $4.5 billion opportunity by 2018. Cloud RTC Platforms are cloud services that enable mobile and web developers to integrate communications into their applications with just a few lines of code. Via REST APIs and SDKs Cloud RTC Platforms enable developers to easily integrate voice, messaging and video calling into mobile and web applications supporting more contextual conversations. These tools have the potential to change in how we interact with each other in the future.

In the past experienced telecommunications developer were the only ones with the skills to build applications that included communications features. With technology such as WebRTC and Cloud RTC platforms, communications infrastructure is being exposed and communication interfaces much more flexible. Innovators will combine traditional forms of communications to create new more collaborative and interactive experiences.

The increasing ease in implementing in-app communications is disrupting the traditional value chain in delivering communications services. Application developers are gaining more control of the communications market. Many are building communications stacks on top of operator networks, bypassing their service offerings eating at revenues and limiting their ability to add value. Operators are desperately looking for new strategies to play a bigger role in the application ecosystem; embracing WebRTC and engaging with Cloud RTC Platforms is an increasingly viable option. By providing standardized cross platform APIs and developer relations, Cloud RTC Platforms are providing an opportunity for operators to participate in the ongoing market innovation.

Competition in this market will be fierce and we expect technology and software vendors throughout the web and telecom ecosystem to bring solutions to market. Competitive differentiators will revolve around vendors’ ability to provide premium quality of service or superior developer and customer service. Our user survey found that the weighted average premium developers were willing to pay for better quality of service and reliability was 14% for voice, 18% for messaging, and 20% for integrated video and voice. Vendors with background in telecommunications will be better positioned to provide superior quality of service while companies with roots in the web will be better able to interface with developers. Hence, we expect a fair amount of coopetition between gateway vendors, bringing to market WebRTC gateways exposing IMS features, and web focused RTC platforms players, that bring developer relations and flexible business models.

While Cloud RTC Platforms are growing fast, 2014 will be an important year in more mainstream adoption of in-app communications. With Cloud RTC platforms just beginning to make communications much more accessible, the business case for the technology or killer app has yet to clearly emerge. Increasing awareness and outreach is needed to ensure that innovative developers find new ways to wrap context around communications.

Demand for in-app messaging presents the greatest shorter term opportunity, with many apps already providing OTT messaging services. We also expect significant demand for voice in the short term with demand for video expected to overtake voice in the coming years. Developing regions are also representing a significant share of the market with the Asia Pacific region making up a disproportional share of the market.

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