AMBER CLOUD VIDEO COMMUNICATIONS INDUSTRY ANALYSIS

Amber Cloud Video Communications industry analysis

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AMBER CLOUD VIDEO COMMUNICATIONS INDUSTRY ANALYSIS

Introduction

This paper presents a delineation of Amber Cloud video communications, a technology-

based company that specializes in providing web video conferencing services. It also provides

insights into the company’s marketing strategies and the industry structure, through a detailed

analysis of the market, including the macro environment and prevailing market factors.

Delineation of Amber Cloud Video Communications

Amber Cloud video communications is an Australian remote conferencing services

company. Its headquarters are in Sidney, Australia. The company has established a presence in

San Jose, London, New Delhi, and Cape Town. It provides a range of conferencing services that

combine online meetings, video conferencing, mobile collaborations, and chats.

Mission statement: To enable businesses and people throughout the globe to attain their

full potential.

Amber Cloud video communications provide video conferencing for up to 150

participants, with a 45-minute time limit. For larger groups and more time limits, a paid

subscription is available, and usually with additional features and benefits. Its customers are

private corporations, the government, educators and various players in healthcare.

Marketing strategies

Amber Cloud video communications employ various marketing strategies for expansion

of the company and the realization of its mission to be the global leading player in video

conferencing. They include; telling great stories using videos that portray a potential problem

and afterward a solution for it (Osik, Borbasova, Prokopenko, & Valeeva, 2017). The company
AMBER CLOUD VIDEO COMMUNICATIONS INDUSTRY ANALYSIS

makes use of fun videos to communicate useful information to potential customers. The content

revolves around; how to use the Amber Cloud platform, webinars on trends in the industry and

product demos. The company also uses client testimonials to convince others to use its services

and potentially benefit from them.

Industry analysis

Structure and trends

Video conferencing is defined as the process through which meetings are conducted by

the use of telecommunication technologies and entails a real-time transmission of audio and

video content. It is effective at aiding companies to arrive at decisions faster. It also eliminates

costs and time associated with travel. As a result, it reduces a company's management and

operational costs which subsequently enhances productivity. The global market size for the video

conferencing industry was valued at approximately USD3.5 billion in the year 2017 (Mahajan &

Mahajan, 2018). By 2025, the industry is expected to expand by at least 9%.

The increasing demand for seamless video communication resulting from the

globalization of business activities is a major driver for the market. Also, the geographically

scattered nature of businesses and their operations contributes significantly to the demand for

video conferencing due to the management of the workforce. Fields such as online education and

telemedicine are increasingly becoming popular in various emerging economies; as a result,

there is an increased demand for technological solutions such as conducting meetings remotely.

Several key players in this market are making use of video conferencing as a tool to

broaden collaboration and interactions between teams that are geographically dispersed

(Mahajan & Mahajan, 2018). Also, many are focused on the reduction of communication costs, a
AMBER CLOUD VIDEO COMMUNICATIONS INDUSTRY ANALYSIS

factor that has created a major niche for video conferencing market players. This has

consequently led to innovation and deployment of better services and solutions in the field.

This market is expected to experience major growth due to the increased adoption of

cloud-based communications. Market players in this sector are focusing on progressive product

innovation such as mobile video conferencing to increase their uptake amongst small and

medium enterprises.

Nevertheless, there are several challenges are likely to face the growth of this industry.

They include; concerns regarding security and privacy of information and high costs of

purchasing and deploying market solutions. The high initial investments are attributed to the

need to purchase devices of high-quality standards as well as advanced software solutions.

Others include the high cost of training employees.

The service sector of this industry is set to experience major growth over the next five

years. This is primarily due to the increased demand for employee training, deployment of better

solutions and project consulting (Mahajan & Mahajan, 2018). Such services have in the past

enabled companies to expand their operations geographically through setting up a centralized

platform of communication that has enhanced capabilities to facilitate interactions between

groups situated in varied locations across cities or countries.

On the end-user basis, the market is divided into education, government and defense,

media and entertainment, healthcare and corporate. The corporate division dominates the global

market, with an approximate market share of 29% as of 2019. This trend is likely to progress for

the next five years. The health segment follows closely, owing to the increasing need for urgent

medical help to patients located in remote locations. The education sector is also set to increase
AMBER CLOUD VIDEO COMMUNICATIONS INDUSTRY ANALYSIS

its demand for video conferencing in the forecasted period, followed by the media and

entertainment, and finally small and medium enterprises.

The key players in this industry as of 2020 include Cisco Systems, Huawei Technologies,

Microsoft Corporation, West Corporations, and Zoom Video Communications. These players are

majorly focused on the development of secure data transmission, better integration abilities to

meet the expectations of customers, and product innovation. The industry is still in its growth

phase, and key industry players are focusing on expanding their customer base and geographical

presence through the acquisition of smaller companies.

Macro Environment Analysis

The primary objective of macro environment analysis is identifying possible threats and

opportunities that will have an impact on the video conferencing industry as a whole, and which

are outside the control of Amber Cloud (Kaur, 2019).

Politically, there exists an opportunity for increased development since job creation by

the government will lead to new political chances for certain cuts in taxes. There is a threat,

however, that the taxes introduced by one government will likely expire when the next

government takes over.

In terms of demographics, an increased focus on middle-aged women is a big opportunity

for the industry (Kaur, 2019). Therefore, companies that will stick to marketing the sector to

young men may lose out if their competitors take advantage of chance first.

There is an economic opportunity for the industry since it is entirely knowledge-based. If

Amber Cloud Video Communications takes advantage of skilled labor, it can rapidly foster
AMBER CLOUD VIDEO COMMUNICATIONS INDUSTRY ANALYSIS

economic growth. However, this can be seen as a threat to developed countries since companies

may prefer to outsource labor from upcoming tech countries like India.

An opportunity can also be seen in the Social Cultural perspective since consumers are

increasingly showing a demand for innovative technology (Kaur, 2019). The threat here is that

companies have to regularly come up with new products to stay in business and ahead of their

rivals.

There will be an increased need in the forecast years for Amber Cloud video

communications to come up with products that are more durable so as to appeal to consumers

who care about conserving the environment. Moreover, the waste produced by technological

industries is seen as a threat.

Market factors

The video conferencing industry is influenced by various market factors. Amber Cloud

Video Communications acknowledges the need for a flexible approach in dealing with prevailing

conditions in the markets with the aim of emerging as a leading player in the industry in the

foreseeable future. Internet connectivity has seen major changes in the past decade, therefore

enabling customers to enjoy faster speeds during their meetings (Schmitt, Bulterman & Cesar,

2017). The existence of 3D technology has contributed significantly to the sector, especially in

use by architectural companies during video communications to showcase various models.

Computer calculation powers and speed have also been major factors in the industry. Their

ability to come up with truly 'random' numbers is a milestone for the video conferencing

industry. Another important development in the sector is security in cryptography. Amber Cloud
AMBER CLOUD VIDEO COMMUNICATIONS INDUSTRY ANALYSIS

Video Communications has especially benefited from this market factor in providing clients with

secure two-way communications among teams located in different geographical areas.

Conclusion

Amber Cloud Video Communications maintains a solid ground in terms of future growth

in video conferencing and the technology industry as a whole. From the analysis, it is clear that

the company is very competitive and its growth has been propelled by favorable market

conditions and its strength in the micro-environment. One would recommend that Amber Cloud

keeps up with its healthy expansion plan and marketing strategies to reach all the potential

consumers and secure its desired position as a leading video conferencing company.
AMBER CLOUD VIDEO COMMUNICATIONS INDUSTRY ANALYSIS

References

Osik, Y. I., Borbasova, Z. N., Prokopenko, O. V., & Valeeva, V. Z. (2017). Marketing of

innovations & Innovational marketing.

Mahajan, V., & Mahajan, R. (2018). Variable Selection of Customers for Churn Analysis in the

Telecommunication Industry. International Journal of Virtual Communities and Social

Networking (IJVCSN), 10(1), 17-32.

Video Conferencing Market Size & Share | Industry Report, 2019-2025.

Grandviewresearch.com. (2020). Retrieved 5 April 2020, from

https://www.grandviewresearch.com/industry-analysis/video-conferencing-market.

Kaur, S. (2019). Predicting the causes and phases of business cycles in India a macro-

econometric analysis.

Schmitt, M., Redi, J., Bulterman, D., & Cesar, P. S. (2017). Towards individual QoE for

multiparty videoconferencing. IEEE Transactions on Multimedia, 20(7), 1781-1795.