UCaaS Market Expected to Grow at Double Digit Rates Until 2020
Unified communication as a service (UcaaS) delivers communication and collaboration applications and services by a third-party provider delivered over an IP network with public or hybrid options. As more organizations migrate from traditional on-premises systems, UcaaS is seeing an increase in adoption because of the options it provides in terms of flexibility and low cost. A couple of forecasts have come to the same conclusion by stating the UcaaS market will grow at a robust compound annual growth rate until 2020.
Persistence Market Research revealed in its latest report the UcaaS market will see a significant increase because UcaaS model gets rid of the cost associated with deploying a unified communication solution. The dollar value of the forecast by MarketsandMarkets on the other hand has the market growing from $15.12 billion in 2015 to $24.88 billion by 2020, which represents a compound annual growth rate (CAGR) of 10.5 percent.
The UCaaS market has been segmented on the basis of components, into telephony, unified messaging, conferencing, collaboration platforms, and applications, while the size of organizations were identified as small business, medium business, enterprises and large enterprises.
The verticals that are deploying UCaaS covers virtually every industry, including telecoms, financial and insurance services, retail, healthcare, manufacturing, utilities and many others in all of the regions around the world.
According to Persistence Market Research and MarketsandMarkets, some of the key players in the UcaaS market are IBM, Avaya, Cisco, Microsoft, Hewlett-Packard, Polycom, Verizon and others.
In addressing the obstacles facing UCaaS, MarketsandMarkets stated, "Today, the communication service provider companies are focusing to provide their customers with highly efficient communication tool to simplify the communication processes. It has been observed that SMB’s are facing critical challenges, such as how to improve customer satisfaction while lowering operational expenditures and improving the productivity of employees."
The firm said the entry of major players in the segment, such as Cisco, IBM, Microsoft, Avaya, and HP, has resulted in low cost solutions that will give SMBs the access to the technology so they can communicate and collaborate from remote locations. For SMBs, the features they find most useful in a UCaaS solutions are those that lower the operational costs while improving productivity. This includes, reliable network infrastructure and tight integration with desktop applications, low cost telephony, full network security and secure Wi-Fi access from anywhere.
Forecast are delivered after a wide range of data points have been thoroughly analyzed. After crunching the quantitative and qualitative information, which include market size and market growth along with trends, analysis, and insights, the UCaaS market looks to keep growing at more than 10 percent for the next five years.
Edited by Maurice Nagle