Proliferation of Bring-your-own-device Culture to Boost Demand for Unified Communication as a Service (UCaaS) Products
Unified communication as a service (UCaaS) is a high-potential emerging technology, permanently updated, and a standardized service, which has been stirring interest of developer communities and enterprises around the world. With cloud communication providers looking to expand their offerings, enterprises are increasingly deploying UCaaS as a viable cloud service option. Enhanced productivity, accelerated decision-making, and lower costs are a few benefits offered by UCaaS. The demand for UCaaS products is likely to grow as companies gaining knowledge about the aforementioned benefits. .
According to Transparency Market Research (TMR), the global UCaaS market stood at US$8.23 bn in 2015. Exhibiting a CAGR of 29.4% between 2016 and 2024, the market is expected to reach US$79.3 bn by the end of 2024.
The growth witnessed by the global UCaaS market is primarily facilitated by the proliferation of the enterprise mobility and bring-your-own-device (BYOD) culture. As more people join the BYOD bandwagon, the dependence on smartphones and tablets is bound to surge. This will subsequently fuel demand for flexibility and scalability intrinsic to UCaaS.
Q: What leads to the high deployment of UCaaS across large, small, and medium enterprises?
A: Although large enterprises exhibit a high degree of awareness regarding advantages offered by UCaaS, there still exists awareness gap in the small and medium scale businesses. Due to its status as a high-potential emerging technology, UCaaS has spurred interest in development communities and enterprises alike. This has resulted in its deployment as a ready-to-go-solutions by industries looking for short turnaround time.
As enterprises grapple to improve their communication and collaboration abilities, cloud solutions are gradually factoring into their decision-making. Besides this, there has been a considerable rise in the number of mobile workers, which has enabled organizations to enter cross-border markets. Hence, the need for collaborations tools, facilitating communication between employee and enterprises, is more than ever before. This has provided a significant boost to the global UCaaS market.
In contract, inadequate awareness regarding UCaaS and the benefits it offer, limits its adoption across SMEs. However, this challenge is likely to have minimal impact on the global UCaaS market in the long terms.
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Q: What opportunities are leading players in the UCaaS looking to capitalize on?
A: According to TMR, the top five companies hold the leading share in the UCaaS market, rendering its vendor landscape highly consolidated. In order to gain competitive advantage these companies are focusing on the integration of business processes and applications. Besides mergers and acquisitions, the leading companies in the market have been looking to gain from the latest technological advancements.
For instance, RingCentral Office Google Edition, launched in June 2016, is aimed at integrating UCaaS products with Google Apps Unlimited. With this collaboration, RingCentral Inc. has eye on integrating its UCaaS products with Google Unlimited, thereby boosting installation of its products across larger enterprises.
Furthermore, Mitel Network Corp’s acquisition of Polycom Inc. is likely to spawn mobile unified communication services and cloud video. Such developments are likely to have significant implications on the global UCaaS market’s growth trajectory and help companies expand their footprint.