Dialogic WebRTC Impact Study

2. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 2 Survey Overview !   Dialogic is pleased to present the results of its 2013 WebRTC Impact Survey that asked 169 key execuRves of Service Providers and ApplicaRon Developers to assess the impact of WebRTC on their business models. !   WebRTC is viewed as a game changing technology because of its ubiquity in the market and the expectaRon that nearly all devices with a Web browser will eventually be enabled. Forecast to approach one billion devices by the end of 2013, the WebRTC installed base provides a broad plaVorm for those firms able to build, deploy and scale compelling applicaRons or services. And while tradiRonal Over The Top (OTT) applicaRon developers will certainly benefit, Service Providers are emerging as a major gateway to success due to the power of network-‐based soluRons. !   The study’s respondents voiced their confidence in WebRTC with a combined 86.9% indicaRng that WebRTC is significant to their product roadmaps. Furthermore, respondents confirmed that video conferencing is not the primary beneficiary of the implementaRon of WebRTC. In fact, 37.7% of respondents believe that it offers a broader benefit to Unified CommunicaRons. Rather than tradiRonal Enterprise, 35.9% of respondents foresee the greatest impact to the EducaRon market, more than twice the 16.8% who favored Adult Entertainment. The most challenging aspects of deploying WebRTC, however, are Interoperability (33.9%) and the complexity of mixing video, voice and data streams (30.4%) absent a powerful media server in the WebRTC specificaRon. !   We invite you to enjoy the survey and to share your thoughts with us on Twider @Dialogic.

3. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 3 QuesRon 1 – WebRTC: DisrupRve Behavior !   Respondents overwhelmingly idenRﬁed the browser-‐based aspect of WebRTC (59.5%) to be its most disrupRve aspect. With nearly one billion browsers predicted to be WebRTC-‐enabled by the end of 2013, the installed base for compelling applicaRons is signiﬁcant1. What%is%the%most%disruptive%aspect%of%WebRTC?Note:&168&respondents7.7%&9.5%&10.7%&12.5%&59.5%&Championed&by&Google&and&Mozilla&RoyaltyCfree&video&and&audio&codecs&Open&source&technology&Web&services&model&Built&into&browser,&thus&no&client&1Source: Dialogic internal esRmate

4. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 4 QuesRon 2 – Telecom SoluRons: Market Impact Which%Telecom%solutions%market%will%be%the%most%impacted%by%WebRTC?Note:&167&respondents3.0%&12.0%&18.0%&29.3%&37.7%&Audio&Conference&Services&IP@PBX&Contact&Center&Video&Conference&Systems&Unified&CommunicaIons&!   Respondents idenRfied Unified CommunicaRons (37.7%) as the market that will be most impacted by WebRTC. This is consistent with the anRcipated potenRal of WebRTC to drive the convergence of mulR-‐party video, audio and collaboraRon in a Rghtly integrated package. !   The disrupRve potenRal to Video Conferencing (29.3%) remains a threat to incumbents who will most likely struggle to match flexibility, ease of deployment and cost effecRveness.

5. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 5 QuesRon 3 – Telecom Services: Market Impact !   Respondents were more evenly divided as to which telecom services market would be the most disrupted, but most favored Mobile Network Operators (24.6%) and their more than six billion subscribers. Smartphones will be the main driver as Operators expand their 3G and LTE networks. !   MulR-‐Service Operators or Cable companies (21.6%) were the second most likely to be impacted, likely driven by quad play services and strong potenRal to drive WebRTC apps via the set-‐top box. Which%Telecom%Services%market%will%be%the%most%impacted%by%WebRTC?Note:&167&respondents12.0%&21.0%&21.0%&21.6%&24.6%&Internet&Service&Providers&Over;The;Top&Service&Providers&PSTN&Service&Providers&MulA;Service&Operators&Mobile&Network&Operators&

6. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 6 QuesRon 4 – VerRcal Markets Trends !   Respondents overwhelmingly selected EducaRon (35.9%) as the verRcal market that will most likely beneﬁt from WebRTC. The sheer scale of the global EducaRon market plus the penetraRon of smart phones and tablets favors this conclusion. !   Adult Entertainment (16.8%) was a strong second choice given the technological innovaRon demonstrated by this verRcal and the proﬁtable growth of video in this market. Which%of%the%following%vertical%markets%will%benefit%most%from%WebRTC?Note:&167&respondents9.0%&11.4%&12.6%&14.4%&16.8%&35.9%&Hospitality&Financial&Services&Healthcare&Online&Gaming&Adult&Entertainment&EducaIon&

7. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 7 QuesRon 5 – Vendor Segment Gains !   The growing preference for ApplicaRon Server Vendors (30.5%) is reﬂected in the opinion that this market has the most to gain from WebRTC. This response is a signiﬁcant wake up call for Video Conferencing Vendors who will likely experience tremendous compeRRon to their installed base. !   Service Provider Infrastructure Vendors (24.0%) such as Ericsson, Huawei and Oracle are gaining momentum with Service Providers in their ability to deliver a broader array of turnkey applicaRons. What%vendor%segment%has%the%most%to%gain%from%WebRTC?Note:&167&respondents9.6%&18.0%&18.0%&24.0%&30.5%&SIP&Client&/&So?&Client&Vendors&Enterprise&Telecom&Vendors&Video&Conferencing&/&Telepresence&Vendors&Service&Provider&Infrastructure&Vendors&ApplicaKon&Server&Vendors&

8. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 8 QuesRon 6 – WebRTC Browser AdopRon !   Respondents were universally conﬁdent (95.9%) that WebRTC will be successful even without support from Microsol Internet Explorer and Apple Safari. This is likely a funcRon of Android’s 69% worldwide mobile market share1 and the Chrome/Firefox/Opera worldwide PC market share2 of 39%. !   Given the ability of most devices to run mulRple browsers, the need for Microsol Skype or Apple FaceRme to join the WebRTC ecosystem is greatly reduced. How$successful$would$WebRTC$be$without$support$from$Microsoft$Internet$Explorer$and$Apple$Safari?Note:&169&respondents4.1%&8.9%&18.9%&31.4%&36.7%&No&success&Highly&successful&Limited&success&Moderately&successful&Very&successful&1Source: Strategy AnalyRcs December 2012 2Source: Net ApplicaRons May 2013

9. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 9 QuesRon 7 – WebRTC-‐Enabled Roadmaps !   Respondents are rethinking their business models at a torrid pace given that 61.9% consider WebRTC to be Very or Highly Significant to their product or services roadmap. This is a parRcularly unique insight because it highlights the breadth of adenRon being paid to WebRTC and the likely innovaRon that will result from this investment. !   Only 4.2% of respondents considered WebRTC to be insignificant to their organizaRon’s roadmaps. How$significant$is$WebRTC$to$your$product$or$services$roadmap?Note:&168&respondents4.2%&8.9%&19.0%&25.0%&42.9%&Insignificant&Limited&significance&Highly&significant&Moderately&significant&Very&significant&

10. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 10 QuesRon 8 – WebRTC AdopRon Challenges !   While WebRTC is poised to be a catalyst for change, 33.9% of respondents sRll highlighted the challenges of interoperability likely among browsers, protocols and the future integraRon of tradiRonal landline, Voice over IP (VOIP) or Session IniRaRon Protocol (SIP) parRcipants. !   Mixing Video, Audio and Data streams (30.4%) was also idenRﬁed as a key challenge given the complexity of media-‐rich conversaRons and the potenRal for collaboraRon in a spec that is absent a media server. What%is%the%most%challenging%aspect%of%WebRTC%technology%adoption?Note:&168&respondents6.0%&13.1%&16.7%&30.4%&33.9%&Virtualiza<on&Session&Security&Scalability&/&High&availability&Mixing&mul<ple&Video,&Audio&and&Data&streams&Interoperability&

11. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 11 QuesRon 9 – Open Source Challenges !   While 61.7% of respondents prefer that WebRTC is Open Source, over a third of respondents (34.7%) expressed their concerns that end-‐users may resist deploying Open Source code likely into stringent Enterprise or Government communicaRons environments. !   A marginal 3.6% of respondents indicated they cannot work with Open Source likely due to end-‐user prohibiRons on Open Source code in their soluRons. Do#the#open#source#and#royalty1free#aspects#of#WebRTC#affect#your#deployment#decision?Note:&167&respondents3.6%&34.7%&61.7%&Cannot&work&with&Open&Source&Concerned&about&customer&acceptance&issues&Prefer&Open&Source&

12. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 12 QuesRon 10 – WebRTC Benefits !   Respondents indicated that the most significant benefit of WebRTC is its low implementaRon costs associated with high returns (22.0%). Given its rapidly expanding installed base, the absence of an addiRonal client and the need for lidle or no infrastructure, WebRTC is a high potenRal enabler that is light on deployment burden. !   CommunicaRons cost savings (17.3%) and Developer simplicity (17.3%) were Red for second, further highlighRng the power of WebRTC. What%is%the%most%significant%benefit%of%WebRTC%technology?Note:&168&respondents1.8%&16.1%&17.3%&17.3%&22.0%&Hardware&infrastructure&is&too&costly&Content&and&Collabora@on&Developer&simplicity&Communica@ons&cost&savings&Low&implementa@on&costs&with&high&return&

13. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 13 QuesRon 11 – WebRTC Deployment Timeframes !   Time will tell if WebRTC can survive the hype cycle. Even with the study’s general endorsement of WebRTC, 38.5% of respondents were unsure of their organizaRon’s Rmeframe for introducing a soluRon. This contrasts with the combined 49.0% of respondents who are targeRng a new soluRon or service within the next twelve months. What%is%your%organization’s%timeframe%for%introducing%a%WebRTC%solution%or%service?Note:&169&respondents18.3%&11.8%&18.9%&12.4%&38.5%&073&months&376&months&6712&months&12718&months&Not&sure&

14. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 14 Thank You !   Thank you for reading the 2013 WebRTC Impact Survey by Dialogic. !   This survey indicates that the future of WebRTC relies on the power to mix diverse streams and enable connecRvity between legacy networks, endpoints and WebRTC-‐enabled browsers. Dialogic PowerMediaTM XMS, a solware media server, simpliﬁes mulR-‐party communicaRons and collaboraRon. PowerMedia XMS also provides a seamless transiRon for virtualizaRon and cloud environments. Learn more at www.dialogic.com or on Twider @Dialogic.

15. © COPYRIGHT 2013 DIALOGIC INC. ALL RIGHTS RESERVED. 15 Dialogic, PowerMedia and Network Fuel, among others, as well as related logos are either registered trademarks or trademarks of Dialogic Inc. and all companies controlling, controlled by, or under common control with Dialogic Inc. (“Dialogic”). The names of actual companies and products menRoned herein are the trademarks of their respecRve owners. 06/13 dialogic.com

Dialogic WebRTC Impact Study

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Dialogic WebRTC Impact Study