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Monday, 08 February 2016 01:46

Cloud Unified Communications market penetration to hit 41% by 2020

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A survey of top global service providers and industry leaders forecasts rapid shift from premise to cloud UC and from desktop phones to mobile devices

Cloud Unified Communications (UCaaS/Hosted PBX) market penetration will increase nearly 6x to 41% (from 7%) over the next five years, with a rapid shift away from traditional premise systems across all market segments.

The new BroadSoft survey of global telecom service providers and industry leaders predicts by 2020, the Cloud UC market penetration is expected to grow 3x (from 6% to 20%) in the large enterprise segment, 7x (from 5% to 37%) in the midmarket segment, and almost 5x (from 10% to 48%) in the small business segment.

According to the survey, in addition to the shift from premise to cloud, Unified Communications will become increasingly mobile: 42% of respondents believe that more than half of UC interactions for businesses of all sizes will occur via mobile devices by 2020, while one-third of small businesses will opt for mobile-only UCaaS/Hosted PBX solutions, eliminating their need for desk phones. 

Email on the way out

The majority (82%) of survey respondents expect over the top (OTT) integrated messaging and collaboration applications to disrupt the business email market, while only 18% feel email will remain the primary business-messaging tool.

BroadSoft believes that these new OTT solutions, when deeply integrated with UC and business applications, will offer service providers a differentiated and compelling value proposition, and access to a large and growing market opportunity with attractive margins. 

“Enterprise UCaaS is proving disruptive due to its superior value proposition – reduced complexity, lower total cost of ownership and greater productivity and mobility for the increasingly millennial and distributed workforce,” said Taher Behbehani, chief marketing officer, BroadSoft. “Importantly, this opportunity is not lost on service providers and industry leaders as 90% of survey respondents rate UCaaS/Hosted PBX as their preferred technology solution strategy, while only 10% are leading sales efforts with premise PBX.”  

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