2013

2014

INSERT COMPANY LOGO HERE

2013
North
American
SSL Certificate
2014
Global
Online Video
Platforms
Product
Leadership
Award Award
Growth
Excellence
Leadership

BEST PRACTICES RESEARCH

Background and Company Performance

Industry Challenges
Frost & Sullivan notes that the online video platforms marketplace is both fast growing
and dynamic. Video has always had a central role to play in media and entertainment
organizations, as it is quite fundamental to revenue generation in the M&E case. Over the
past five years, enterprises report to Frost & Sullivan how they have also come to
recognize the power and efficacy of video as a means of communicating internally and
externally, selling ideas and products, conveying messages and creating customer loyalty.
The OVP market thus observes a distinct dichotomy between the enterprise and M&E
segments. Challenges in both segments differ, and customized solutions that meet specific
business objectives are critical. As a result, competing effectively in both markets is
difficult.
On the demand side, there is a lack of awareness among consumers around what exactly
an OVP solution entails. Transcoding, encoding, publishing, analytics and DRM are all
terms that are used in association with online video platforms. However, due to the sheer
number of vendor offerings in the market combined with pricing, product and deployment
flexibility, comparing apples to apples becomes difficult for the consumer. In order to
thrive in this environment, Frost & Sullivan feels that vendors must ensure that they truly
differentiate themselves - while educating consumers and communicating their value
proposition more effectively.
Enterprises today are still largely document centric. Inside many enterprises, video is still
a good-to-have rather than a must-have feature. With limited budgets, enterprises
often choose to upgrade existing document-based systems over instituting video. Many
enterprises

have

only

recently

begun

experimenting

with

video

and

are

just

accommodating pieces of infrastructure without a proper roadmap or enterprise-wide

video strategy. For OVPs that are called upon to provide enterprise solutions, Frost &
Sullivan points out that it is important that video be incorporated inside these traditional
document-based enterprise systems (such as enterprise content management, knowledge
management, and DRM), rather than operate in isolation.
Over the years, large companies with good IT budgets inevitably accrue tremendous
amounts of IT infrastructure in many cases, organizations have acquired transcoders,
servers, CDNs, and content management systems. In such cases, there is pressure on inhouse IT departments to stitch together the existing equipment and software to develop a
platform through which video can be created and consumed across the enterprise.
However, when adequate resources, talent, and time are not devoted to the development
and implementation of an enterprise-wide video strategy, the video solutions that result
from connecting these multiple, disparate, siloed systems do not function as intended and
need revisiting. Such homegrown solutions are a considerable challenge to OVP vendors.
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Compared to a decade ago, when people consumed video only on their TVs, this changing
landscape is fascinating. Year over year, share of time spent watching videos on tablets
and mobile devices has increased 719% since Q4 2011, and 160% year-over-year since
Q4 2012.

Mobile and tablets combined for over 18% of time played in October, and

reached over 26% by the end of December 2013, a 43% increase (per Frost & Sullivan
independent analysis).
TV by appointment is becoming outdated, and content continues to proliferate at a
lightning pace. At the same time, workplaces have become flexible. Increasingly more
companies today are okay with remote working and with BYOD, i.e. employees Bring Your
Own Device. Against this backdrop, securing and protecting an organizations branded
intellectual property, providing high quality of experience while working within bandwidth
limitations are just basic expectations.
In addition, both enterprises and M&E organizations have several concerns around
security, scalability, reliability, video formats and defining video quality. Vendors need to
allay these fears as they penetrate this market.

Growth Performance and Customer Impact of Kaltura, Inc.

Growth Strategy:
When Kaltura entered the crowded online video platforms marketplace in 2006, it was
selling to small publishers and had differentiated itself as the first and only open source
video solution in the market. The company has since grown to provide live and on-demand
video solutions to large corporations and organizations all around the world across four
large markets: enterprise, education, media, and B2B and B2C service providers (cloud
computing providers, and cable, satellite, and mobile operators). Kaltura powers today
video experiences for many of the worlds largest broadcasters, for leading Fortune 100
and Global 2,000 corporations, for top schools and universities worldwide, and with the
technology of recently acquired Tvinci, for some of the leading global pay TV operators.
Frost & Sullivan appreciates the fact that Kaltura looks at video in a fundamentally
different way from the rest of the online video platforms vendors. Kalturas belief that
every company is a media company is the foundation on which much of its product
development, partnership and growth strategy is based.
From the very beginning, Kaltura has focused on building a rich, modular and flexible set
of open APIs that could be assembled together, like Lego pieces, into many different video
solutions. Kaltura offers companies both the APIs in the form of a platform-as-a-service,
coupled with an open-source community of over 100,000 developers, as well as a wide
array of out-of-the-box solutions in the form of software-as-a-service (running on
Kalturas cloud, or any other 3rd party private or public cloud), addressing use cases such
as digital marketing, training and development, video collaboration, web-based
monetization, OTT-TV etc.
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For example, in its off-the-shelf solutions for the education vertical, Kaltura includes
everything from video tools for admissions, to teaching and learning, campus life, clubs
and alumni relations. As such, the Kaltura solution is capable of targeting on a per student
basis - engaging a student from the time he/she is a prospect, all the way till they become
alumni.
Above market growth:
In a span of eight short years since its founding in 2006, Kaltura hit the $50 million mark
in 2013. While the OVP market is growing at an cumulative average growth rate of 13.2%,
Kalturas year on year growth rates have consistently been between 50% and 60%. Thus,
Kaltura is arguably one of the fastest growing companies in the online video platforms
market.
As a testament to their growth and forward looking strategy, the company received $50
million in venture capital funding in February, 2014. Subsequently, the company
announced plans to make advances and integrate into their product offering additional
functionalities like webcasting, lecture capture capabilities, analytics, a monetization suite
and a larger focus on the pay TV market.
Growth diversification:
Given the rapid uptake of video in large enterprises around the world today, one of the
key emerging trends over the past year is the rise in popularity of live video. Live video is
critical for employee town halls, all hands meetings, CEO communications, earnings
releases, sales enablement etc. while on-demand video and corporate YouTube-like
applications are a key component for digital marketing, training, customer and partner
communications. As a result, it is inevitable that the live and on-demand video workflows
will converge into a single solution. With its recent partnership with Wowza, Kaltura has
integrated a live streaming service as part of its offering.
The acquisition of Tvinci, which was completed in May, 2014 has enabled Kaltura to
expand capabilities and develop a deeper, comprehensive and compelling offering for the
media and entertainment and service provider markets. It also helps Kaltura to gain
access to the Tvinci customer and partner network.
With its latest round of funding, Kaltura is also diversifying geographically, extending
operations into emerging markets - such as Brazil, China and Mexico, and some more
mature video markets, like Japan, Korea, Australia and Singapore.
Kalturas open, flexible, and collaborative approach and the resulting modular system
architecture, had enabled the company to provide a wide array of solutions that address a
wider market opportunity than other video technology providers, including both internal
and external use cases for enterprises, media, education, and service provider markets.
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In addition, the companys ability to provide a platform and custom multi-tenant solutions
for 3rd party cloud computing providers and VARs enable Kaltura to grow exponentially
through their partners sales.
Growth sustainability:
Kalturas open source approach in itself is conducive to sustained growth. Kaltura.org is an
independent forum where 100,000 developers innovate and collaborate to build tools and
apps that extend the Kaltura platform. Several hundreds of these developers are also
monetizing their apps by commercially selling these through the Kaltura Application
Exchange.
Looking forward, Kaltura has been quite proactive to identify that video will become a key
force for cloud vendors to reckon with. As a result, the company is engaged in
conversations with leading cloud solution providers of the likes of Amazon AWS, Microsoft
Azure, IBM, Rackspace, and Canopy.
Brand equity:
In a span of eight short years, Kaltura has emerged in what is a dynamic and overcrowded OVP market to become one of the top 2 vendors in each of its markets with
unparalleled success in a cross-vertical setting. As such, Kaltura has the most economies
of scale, and can also provide the most value for organizations that have cross-vertical
interest, such as service providers. Kaltura is the partner of choice for several top brands,
enterprises and media companies from around the world. Oracle, AT&T, Disney, Target,
Honda, Nestle, the Mayo Clinic, United Health Group, and Astra Zeneca are only a few
among Kalturas list of illustrious customers. In the education vertical, top universities
such as Harvard, Yale, Stanford, Durham are Kalturas clients.
Kaltura has also garnered a lot of attention from the analyst community and media. It has
recently been named by the Business Insider as One of the Top 5 Startups
Revolutionizing Education. It has also been named One of 10 Wildly Successful Startups
by Inc. Magazine, One of 5 Companies That Made Media Consumption Smarter this Year
by Forbes and One of 5 Companies that Transformed Enterprise Communication in 2013.

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Conclusion
Kaltura has a track record of looking ahead of the industry status quo, identifying gaps in
the market as well as in their own product portfolio and devising blue ocean strategies to
capitalize on these opportunities. This clarity of vision and execution on growth strategy
has helped Kaltura build a loyal and flourishing customer and partner base. Whether it is
the companys openness and flexibility, its recent acquisition of Tvinci to strengthen its
M&E and Service Provider solution, the launch of its webcasting service, its analytics and
monetization suite, its focus on lecture capture capabilities, or its ability to provide a wide
range of options between build and buy, Kaltura has been consistently addressing
customer needs proactively, and is in a unique position to consolidate many markets:
OVP, EVP, Webcasting, Web conferencing, OTT, providing to all verticals workflows that
mesh together various technologies including live/synchronous, and VOD. Particularly
exciting is Kalturas unique position to provide video solutions for large B2C and B2B
service providers and cloud computing providers, which is a huge growth area for video in
the coming years. The online video platforms space is undergoing an industry shakeout
and in this consolidation phase, Frost & Sullivan firmly believes that Kaltura is firmly
positioned for growth over the next 3-5 years and is the most deserving recipient of the
2014 Global Growth Excellence Leadership Award.

Key Benchmarking Criteria

For the Growth Excellence Leadership Award, Frost & Sullivan analysts independently
evaluated two key factors Growth Performance and Customer Impact according to
the criteria identified below.
Growth Performance
Criterion 1: Growth Strategy
Criterion 2: Above-Market Growth
Criterion 3: Share of Wallet
Criterion 4: Growth Diversification
Criterion 5: Growth Sustainability
Customer Impact
Criterion 1: Price/Performance Value
Criterion 2: Customer Purchase Experience
Criterion 3: Customer Ownership Experience
Criterion 4: Customer Service Experience
Criterion 5: Brand Equity

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Best Practice Award Analysis for Kaltura, Inc.

Decision Support Scorecard
To support its evaluation of best practices across multiple business performance
categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool
allows our research and consulting teams to objectively analyze performance, according to
the key benchmarking criteria listed in the previous section, and to assign ratings on that
basis. The tool follows a 10-point scale that allows for nuances in performance evaluation.
The Decision Support Scorecard is organized by Growth Performance and Customer
Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions
for each criteria are provided beneath the scorecard). The research team confirms the
veracity of this weighted scorecard through sensitivity analysis, which confirms that small
changes to the ratings for a specific criterion do not lead to a significant change in the
overall relative rankings of the companies.
The results of this analysis are shown below. To remain unbiased and to protect the
interests of all organizations reviewed, we have chosen to refer to the other key players in
as Company 2 and Company 3.

DECISION SUPPORT SCORECARD FOR GROWTH EXCELLENCE LEADERSHIP AWARD

(ILLUSTRATIVE)
Measurement of 110 (1 = poor; 10 =
excellent)
Growth Excellence Leadership

Growth
Performance

Customer
Impact

Average
Rating

Kaltura, Inc.

9.50

9.00

9.25

Competitor 2

8.50

8.50

8.50

Competitor 3

8.00

8.25

8.125

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Growth Performance
Criterion 1: Growth Strategy
Requirement: Executive team has a shared vision for the organizations future growth,
and has created and implemented a strategy that is consistent with that vision
Criterion 2: Above-Market Growth
Requirement: Companys growth rate exceeds the industrys year-over-year growth rate
Criterion 3: Share of Wallet
Requirement: Customers allocate a greater percentage of their total spend to purchasing
products or services produced by the company
Criterion 4: Growth Diversification
Requirements: Company is equally able to pursue organic (e.g., distribution channel
optimization, new product innovation) or inorganic (e.g., acquisitions, partnerships)
growth opportunities consistent with the long-term objectives of the organization
Criterion 5: Growth Sustainability
Requirement: Company has consistently sought out opportunities for new growth,
enabling the organization to build on its base, and sustain growth over the long-term

Customer Impact
Criterion 1: Price/Performance Value
Requirement: Products or services offer the best value for the price, compared to similar
offerings in the market
Criterion 2: Customer Purchase Experience
Requirement: Customers feel like they are buying the most optimal solution that
addresses both their unique needs and their unique constraints
Criterion 3: Customer Ownership Experience
Requirement: Customers are proud to own the companys product or service, and have a
positive experience throughout the life of the product or service
Criterion 4: Customer Service Experience
Requirement: Customer service is accessible, fast, stress-free, and of high quality
Criterion 5: Brand Equity
Requirement: Customers have a positive view of the brand and exhibit high brand loyalty

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The Intersection between 360-Degree Research and Best

Practices Awards
360-DEGREE RESEARCH: SEEING ORDER IN
THE CHAOS

Research Methodology

Frost & Sullivans 360-degree research

methodology represents the analytical
rigor of our research process. It offers a
360-degree-view of industry challenges,
trends, and issues by integrating all 7 of
Frost & Sullivan's research methodologies.
Too often, companies make important
growth decisions based on a narrow
understanding of their environment,
leading to errors of both omission and
commission. Successful growth strategies
are founded on a thorough understanding
of market, technical, economic, financial,
customer, best practices, and demographic
analyses. The integration of these research
disciplines into the 360-degree research
methodology provides an evaluation
platform for benchmarking industry players and for identifying those performing at bestin-class levels.

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About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth
and achieve best in class positions in growth, innovation and leadership. The company's
Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined
research and best practice models to drive the generation, evaluation and implementation
of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in
partnering with Global 1000 companies, emerging businesses and the investment
community from 31 offices on six continents. To join our Growth Partnership, please visit
http://www.frost.com.

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