8x8 2014 Annual Report Download - page 6

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Available Information
We were incorporated in California in February 1987 and reincorporated in Delaware in December 1996. We maintain a corporate Internet
website at the address http://www.8x8.com. The contents of this website are not incorporated in or otherwise to be regarded as part of this
Annual Report. We file reports with the Securities and Exchange Commission, or SEC, which are available on our website free of charge. These
reports include annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to such reports,
each of which is provided on our website as soon as reasonably practical after we electronically file such materials with or furnish them to the
SEC. You can also read and copy any materials we file with the SEC at the SEC's Public Reference Room at 100 F Street, NE, Washington, DC
20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1.800.SEC.0330. In
addition, the SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC, including 8x8.
Our Industry
Businesses are increasingly focused on utilizing mobility and UCC solutions to enable increased productivity, improve interactions with
customers and partners, and enhance organizational agility and responsiveness. Legacy solutions have proven to be increasingly expensive and
cumbersome and do not meet these evolving business requirements. Companies of all sizes are managing an increasingly mobile and globally
distributed workforce that seeks to leverage multiple means of communications and collaboration, including voice, text, video and desktop. The
rapid rise of mobile devices in the enterprise has created demand for "bring your own device," or BYOD, provisioning capabilities. Additionally,
companies are looking to increase their competitive edge by integrating ERP, CRM and HCM applications and other back-office information
technology, or IT, systems with their communications and collaboration systems. Finally, as cyber threats proliferate and hackers become more
sophisticated, voice and data security and compliance are at the forefront of business requirements. Legacy providers have struggled to keep up
with the new business paradigm and continue to require long, high-touch sales and setup cycles in an effort to solve carrier and hardware
complexity. New cloud-
based providers deliver point solutions and typically do not provide a secure, comprehensive UCC platform in the cloud.
Cloud Market Opportunity
We believe that the addressable market for our unified cloud communications and collaboration services is large, growing and underpenetrated.
Our services directly address multiple markets. According to TechNavio, an independent research firm, the worldwide Unified Communications
as a Service, or UCaaS market will grow at a 24.6% CAGR from $2.0 billion in 2012 to $4.9 billion in 2016. Gartner forecasts that the cloud-
based Contact Center market will grow at an 18.5% CAGR from $467 million in 2012 to $921 million in 2016. The global web event services
market is forecasted by Frost & Sullivan to grow at a 15.4% CAGR from $354 million in 2012 to $628 million in 2016. We address these
markets with our Virtual Office, Virtual Contact Center and Virtual Meeting solutions, respectively.
We believe the market has reached an inflection point where existing legacy providers are unable to provide a broad UCC solution, and the
adoption of cloud-based UCC services will increase as companies embrace its significant benefits.
Legacy Approaches are Cumbersome and Expensive
Companies are facing increasing complexity with deployments of communications and collaboration services. The exponential growth and
variety of mobile devices (with employees seeking to import their personal devices into the workplace environment), a globally distributed
workforce, demand for full functionality with third-party applications and other back office IT systems and increasing security and regulatory
concerns create numerous challenges for companies seeking a comprehensive UCC solution, including:
4
Hardware/Software Vendor, Carrier and Sub-Carrier Complexity. Establishing connectivity and communications through the myriad
of hardware and software vendors, carriers, sub-carriers and international carriers is becoming ever more complex. Companies need
reliable connectivity without complex configurations that require long lead times to implement.
4
Device Proliferation / BYOD. The exponential growth of mobile devices has resulted in BYOD in the workplace and, as a result, has
increased companies' need for communications and collaboration services in order to improve employee productivity. Furthermore,
companies need to manage and secure voice and data while protecting customer privacy.
2