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Unified communications and collaboration comprise major components of IP communications. As the penetration of Internet increases, Internet Protocol (IP) communications gain popularity among small and medium businesses.

According to a new research from Frost & Sullivan (News - Alert), Mexican unified communications and collaboration (UC&C) solutions market has earned $272.3 million in revenue in 2011. It is estimated to reach $478.2 million in 2018.

The report, “Reality Check on Key Mexican Unified Communications (News - Alert) and Collaboration Solutions Markets,” also finds that large sale volumes of IP telephony, IP phone and videoconferencing solutions will spur the market growth.

Thanks to their affordability, cloud-based UC&C solutions are gaining popularity among small and medium businesses (SMBs). However, the research finds that the prevalence of cloud offerings will not affect on-premises sales significantly, as both models will complement one another and ultimately increase revenue opportunities.

"Employees demand communication and collaboration tools that are similar to or better than what they are familiar with outside work," said Frost & Sullivan research analyst Francisco Rizzo in a statement. "With the proliferation of smartphones and tablets, mobile UC applications that enable enterprises to meet employee needs are fast becoming popular."

According to the research, the intense competition in the large enterprise space poses a stiff challenge to UC vendors and their channels. Telecommunications infrastructure limitations hinder companies from getting the most out of their investments and dissuade potential buyers.

End-of-life of legacy systems is compelling several companies in Mexico to migrate to IP-based environments. This has improved the prospects of the UC&C market, since these applications work best within IP domains.

Vendors’ efforts to expand channel partner base and improve communications infrastructure will heighten the demand for these solutions.

Frost & Sullivan research concludes that increasing SMBs' awareness about UC&C applications and educating channel partners to effectively communicate the benefits of these solutions will lead to revenue opportunities and market expansion.

"To remain competitive, participants must look for new sales opportunities and develop strategies to cater to the needs of the untapped SMB market in particular," said Rizzo. "It is essential to build UC&C systems that also offer cloud-based solutions."

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