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Synergy Discusses UCaaS Growth, Market Leaders

October 20, 2017

Adoption of unified communications as a service is strong. And RingCentral, 8x8, Mitel, BroadSoft, and Vonage are the leaders in this solution category.

That’s the word from Synergy Research Group. The company this week came out with new data on the UCaaS arena.

“UCaaS continues to provide a richer and more cost effective collaborative communication system for businesses globally,” said Jeremy Duke, Synergy Research Group’s founder and chief analyst. “We are also seeing an upmarket acceleration of UCaaS adoption, moving from serving mostly smaller sized organizations now to gaining traction in businesses of over 100 seats and over 1,000 seats. Given that the displacement of premise[s] PBXs remains low today, there is ample ground for UCaaS to find strong growth in displacing these legacy systems over a long stretch of time.”

Indeed. As INTERNET TELEPHONY reported in its second quarter 2017 issue, companies like RingCentral and West Unified Communications are among those moving upmarket and delivering more global services.

“There’s been a massive explosion in the medium business and enterprise space,” said Curtis Peterson, RingCentral’s senior vice president of operations.

The company started out catering to small and medium businesses in the U.S. But now the company is expanding to serve larger customers both at home and abroad.

It has been growing 100 percent year over year in the enterprise space. Its call center business, for which seats are sold separately, is seeing 40 percent year over year growth. And RingCentral two years ago launched a professional services practice to support its move upmarket. That unit delivers “white glove” installations and has been growing at four- to five-digital percentage rates, according to Peterson.

RingCentral defines the enterprise space as opportunities with 100 to 5,000 or more seats. Peterson said RingCentral last quarter won a deal with about 5,000 seats. The company reaches customers and prospects through its own direct sales team as well as via partners such as AT&T, BT, Telus, and value-added resellers. 

Edited by Mandi Nowitz

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