Report Says Cloud-based Technology Driving UCaaS
The cloud appears to be continuing its dizzying drive to help propel new technologies, if a new report is to be believed.
The recent report from Synergy Research Group says that the UCaaS (Unified Communications as a Service) market has reached $4 billion in annual revenues, along with an annual growth rate of 16 percent, and is growing at an accelerated pace thanks to increasing interest in cloud-based UC business suites.
Further, a report from TechTarget.com notes that “The UCaaS business suite accounts for just one-third of the total UCaaS market, but that segment is growing more rapidly than the larger UCaaS application market.” The business suite segment includes public, private and hybrid offerings from vendors including RingCentral, 8x8, Vonage, ShoreTel and Mitel.
The ongoing growth is good news for those in the conferencing arena.
“Standalone applications currently account for two-thirds of the market and include videoconferencing SaaS, Web conferencing SaaS and hosted contact center,” Synergy says. “Videoconferencing SaaS is the smallest product segment within the market but is also the highest growth, with revenues growing by almost 50 percent per year.”
The Web conferencing services market is adapting to meet the changing demands of enterprise buyers, according to a Gartner Magic Quadrant report.
“UCaaS continues to be a force for change within the business communications market,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst. “There has been a rapid rise of some disruptive new vendors and I do not expect the pace of change to slacken. Now some vendors are broadening their product offerings to provide more comprehensive solutions.”
And the market seems to have nowhere to go but up.
“Enterprise buyers today are more interested in products that offer bundles of audio, video and Web capabilities. Buyers are also interested in the bundling of Web conferencing with UC suites like Microsoft Office 365 and Google for Work,” TechTarget said. “This trend is a boon for UC vendors who offer Web conferencing services in their portfolio and has impacted standalone Web conferencing vendors, who must now focus on integration with UC vendors to gain traction in the enterprise.”