J’son & Partners Consulting presents brief results of the research: Video Conferencing Market (VC) in B2G Segment in Russian Federation. Tender documentation on the web-site zakupki.gov.ru for 2012 – 2014 was inspected for the research.


During the research, the tenders on the provision of VC services, equipment delivery and services on a turnkey basis (includes the provision of the service plus equipment delivery for video conference communication) had been explored. Governmental commercial companies and unfinished tenders were excluded from the analysis.


Market Overview


Today VC systems became a daily communication instrument in governmental sector. Nowadays the key importance of video conference is the possibility to cut costs, in particular, on business trips, which is vital in terms of economically unstable situation. The accomplished monitoring of governmental tenders revealed that in 2014 the number of completed tenders on VC services decreased almost twice – till 221 tender.



The number of tenders dropped due to the decreasing number of orders from governmental structures, such as administration and prefectures, educational and medical institutions, regional communication departments and mass communication, pension funds, courts and other special government procurement institutions. The tendency was vivid in 2014 – refusal from the services – it was expressed by the lack of continuous tender, organized in a previous (before the provision of researched services) year. It is also worth to mention that there is a decrease in a number of tenders aimed at the purchase of equipment.


Nevertheless, EMERCOM, fire and tax departments showed positive dynamics by the number of completed tenders of VC services.


During the tenders’ research, the changes in the structure of video-conference-communication services were marked. According to J’son & Partners Consulting, share of tenders on virtual VC increased during the last three years, from 1% in 2012 till 9% in 2014, which pictures the beginning of the process of replacement of classical VC by virtual ones.


In this view, it is important to remind that virtual VC services became part of tenders on complex Unified Communication services in 2014. In 2014 share of such services was almost half of all tenders on virtual VC. VC is becoming a part of package offer on data transfer services. 23% of completed tenders on Unified Communication services contain the provision of virtual VC services, as of results of 2014.



Governmental institutions are still cutting costs, this trend, obviously, is due to the economic policy in the choice of virtual solutions vs classical VC.


The following tendencies can be specified on the domestic VC market in B2G segment for the last three years:


  • The number of connected (implemented again) ports decreased for 40 %;
  • The average speed in Mbps per 1 connection port increased for 60 %;
  • Average cost per connection port increased almost for 1/3;
  • There is a slight growth of virtual VC share;
  • Virtual VC services are becoming a part of package Unified Communication services.


It should be noted that beside the traditional VC equipment, mobile and cloud VC are being used. Cloud solutions aimed at decreasing costs and to simplify infrastructure, mobile solutions allow to transfer video information from the working places and actions, and to consult with experts, which work on a distance.

Expert Opinions


In terms of the research J'son & Partners Consulting’s experts surveyed the industry representatives regarding the market trends for the coming years for Russian Video-Conference-Communication (VC) market.


Lev Yakupov

TrueConf, Marketing Director


«We consider there will be the following market trends in 2015:


  • The transition from specialized hardware VC infrastructure to software in the form of different software, cloud services or solutions for virtual machines will keep going. The tendencies – merger of AV industry by IT-industry and “softwarization” will change the market of video-conference-communication in 2015.
  • Universal PCs will replace specialized VC terminals in the meeting rooms. Major new meeting rooms in the price range till 1 mln RUB will be equipped with the new 4K widescreens with integrated or separate PCs, which carry out functions: meeting planning, brainstorming, e-whiteboards, and of course, video-conference-communication.
  • In B2G segment, governmental companies will seek domestic alternatives for video-conference-communication systems and combined communication, especially in the view of import phaseout and listing of domestic software on legislative level.
  • Classical scenario with booking of the meeting room and meeting planning via complicated web-interface is going far away to the history. In the Skype era, business users demand the same convenient interface, opportunities to call on the phones, see the status and availability of contact and other information from corporate VC-systems. That is why, conferences via browser, address books with status, integration with telephony, different calendars and broadcasting platforms, together with likable interface, will become a “must have” attributes of any solid VC-solution manufacturers. WebRTC technologies – distribution of SIP protocol support and use of combined communication principles, will only help.
  • Distribution of UltraHD 4K and mobile videoconferences. The peculiarity of SVC architecture is an opportunity to deliver video streams of video-conference group participants in a real definition and in any lower ones, which allows dynamically to build video windows with the total definition from 120p till 3840×2160 (4K) and higher. One conference without recoding is available from any device without quality damage and opportunity to adjust to the changing communication environment».


Andrey Smalkov

Softline, Telecommunication Solutions Business Development Manager


– How do you estimate market volume in B2G segment ($): VC and Virtual VC services?


The foreign VC services market is formed, while Russian is on early stage of its development. Just a small share of companies understands what benefits can bring the use of VC services. As a result, the share of companies, which use this solution, is low, especially if to speak about top solutions by Cisco, Policom etc., as this is an expensive product and not all companies are sure that it is possible to cover costs after implementation of these technologies.


– How does geographical market structure looks like by $ and/or number of tenders in accordance with your data?


– The distribution of VC services in Russia is expectable: Moscow, St.Petersburg, cities in the north part of the country (there, as a rule, companies are trying to optimize costs on business trips), Khanty-Mansiysky Administrative District, Tumen, Ekaterinburg. Regions and cities where there are funds on manufacture, profitable companies and terms for business optimization are leaders by number of implemented solutions.


– What service providers are market leaders in B2G segment – VC services?


– Unfortunately, the current leading vendors - Cisco, Рolycom, Avaya – don’t see the appropriate partners in Russia: the problem is that our market is not ready due to its chaotic structure. The company should invest 10-20 mln USD in infrastructure, and then sell it as a service, but in the current economic situation is not clear if this is a payback idea.


– How did the market change for the last years? Did it show the growth or decrease? ($ and pcs.)?


– The market is developing and is coming to the idea to optimize costs, also by implementation of VC solutions. Commercial part is expanding: business understands that VC is a very necessary thing from the point of optimizing costs and as a result the number of clients from private business is increasing. At the moment, the key problems for growth are the fact that many companies are planning to implement this infrastructure, but most of customers have financial difficulties or don’t understand how this technology will help the business. For private company is very difficult to allocate some funds for purchase of technology with unknown payback period. Our customers – are mainly representatives from medium (60%) and large (40%) business. Small business is investing in technologies rarely, especially when they are not sure about its necessity.


The budgeting process in the governmental sector is clearer and that is why the implementation is a little bit easier.


Recent political events also influenced the VC services market. The thing is, in general, some customers are ready to purchase hardware but American and European sanctions influence the demand and its fall. Everyone is thinking about import phaseout. But due to the fact that VC market is practically for 100% is formed by American manufacturers, we cannot say that there are analogs in the world with the same level of quality. This is a difficult task especially for companies, which operate in the governmental sector. For example, Softline company is discussing perspectives per each customer and negotiates with vendors, if there are sanctions against this client and if there is an opportunity to deliver equipment.


What tendencies do you expect on the market during 2015-2016? Growth or Fall? The percentage correlation?


– In the coming future we are expecting market stagnation. At the moment, IT budget is not the main one in Russia, many companies will start to cut costs on IT. It is possible that part of potential customers will choose software solutions instead of hardware solutions. In the coming two years market will be back to the level of 2014.


If to speak about Softline, as about an integrator, despite these tendencies, we are expecting the appearance of new customers. It is more difficult for global market players to adjust to the market. Primary costs of its work are very high in most cases. Softline sells complex solutions, integrate systems of different class. It allows to keep positions on the market even in such a difficult time.


What changes are planned on the market in the coming future? For example, the continuous growth of virtual VC share in the market structure, decreasing cost per one tender, VC services’ delivery as part of complex services, such as unified communication, etc.


–We can specify that market is aiming at software clients and services. They are portable and decrease primary costs on VC.


Another global trend – the use of VC based on cloud technologies. It cuts capital costs: it is very convenient do not buy any equipment and lease it or use as a service. No need to spend money on hardware maintenance, think about its modernization. This is the reason why solutions, which are being sold as hardware, will be distributed more and more often as a service.


If to speak about technologies, the use of Full definition in video-conference-communication is expanding. With the increasing throughput capacity of communication channels, high definition technical opportunities for organizations are becoming available: it is possible to transfer not only video, voice but even presentations».


Vladimir Karpenko

Mind, Head of Partnership Sales Channel


– How do you estimate market volume in B2G segment ($): VC and Virtual VC services?


– According to Mind’s analysts, total VC market volume in B2G segment is around $160-180 mln.


– How does geographical market structure looks like by $ and/or number of tenders in accordance with your data?


– Major share of B2G tenders is being organized in Moscow (by $), as the centralization of IT-purchases is the key tendency lately. In regions, the number of large projects is very low. Last year, for example, it was winter Olympic Games in Sochi. But Olympic Committee is based in Moscow, i.e. this is a Moscow tender. In 2013 large IT tender was in Far East Federal University, but the organizational part was again – in Moscow.


– How did the market change for the last years? Did it show the growth or decrease? ($ and pcs.)


– Lately, VC market growth was estimated in 20-30% averagely, where the market growth of software VC was much higher than the segment of hardware VC.


– What tendencies do you expect on the market during 2015-2016? Growth or Fall? The percentage correlation?


– The growth of software VC market will slow down in 2015, but will remain on the level of 20%, while on the market of hardware - the growth will drop for 20%.


– What changes are planned on the market in the coming future? For example, the continuous growth of virtual VC share in the market structure, decreasing cost per one tender, VC services’ delivery as part of complex services, such as unified communication, etc.


– Our analysts consider that the cost per 1 port or user in USD will decrease. We also forecast that VC market will move from construction of designer rooms to service model. The increasing share of software VC and hybrid solutions is expected in the business of large system integrators.


From the point of technology, the massive transition on H.265 codec won’t likely happened in the nearest future, and SVC technology will remain only in use by several players. MCU architecture will dominate on the market; in particular, it was proved by the launch of new software MCU line by Cisco in the beginning of 2015. Classical technologies for combining video pictures, such as allocation via MCY allows to collect in one symmetrical conference tens of participants in comparison with competitive SVC approach. For example, Mind company solution allows to reflect over 80 participants in the real time, which is very important in terms of Russian Federation. This opportunity correspond to B2G market necessity, for example, allows governmental structures to carry out video meetings with its subsidiaries in all 85 regions of the country.


We also expect that corporate VC services will become more massive in B2G same as in SMB and SOHO segments. One of the trends – in Russia and in the world – will become services, analogs to Online Video Conference Light service by Russian operator Megafon.


The Content of the Full Version of the Research: Russian Video-Conference-Communication Market in Governmental Segment, 2012 – 2014, Forecast till 2017:


  1. Resume
  2. Introduction
  3. MethodologyandSources
  4. Definition of VC Service
  5. The Governmental Sector Necessity in VC Service, Based on Tenders

5.1.Number of Ports

5.2.Average Ports’ Speed

5.3.Purchased Equipment

  1. The Portrait of VC User in B2G- Segment
  2. Estimation of Russian VC Market in B2G Segment, 20122014

7.1.Tender Analysis

7.1.1.   The Number of VC Tenders

7.1.2.   Geographical Structure

7.1.3.   Average Cost per VC Tender Lot. TheMostExpensiveTenders.

7.2.Market Volume ($)

7.3.The Analysis of Invalid Tenders on VC

  1. Market Structure, 20122014

8.1.Market Structure by Geography. Federal Regions.

8.2.Market Structure by Customers. Governmental Institutions-Leaders by Expenditures on VC.

8.3.Market Structure by Market Segments (VC Services, VC Equipment).

8.4.Market Structure by Service Providers. Competitive Situation. Share of Key Players by Number and Volume of Successful Tenders.

  1. Virtual VC Service
  2. Market Forecast till 2017
  3. Conclusion


This Information Note is Prepared by J’son & Partners Consulting, We strive to provide factual and prognostic data that fully reflect the situation and are available to us before issuing the material. J’son & Partners Consulting reserves the right to revise the data after publication of new official information by the market players.