I just saw a new study that reports that the global UCaaS market will continue on its growth tear, increasing from $2.5B in 2013 to over $7.6B in 2018. Such a growth trajectory mirrors what we’re seeing in a number of communications technology sectors across the market – for both the enterprise and for consumers.
The fact is, establishing and maintaining close, ongoing contact with key ‘others’ is a defining characteristic of this time in history. Empowered by an endless array of new technologies, people are reaching out to a larger and larger circle of contacts. We post updates, images, and more for consumption at the convenience of some audiences. We also maintain multiple simultaneous live streams with voice, IM, and video conferencing tools. This is, truly, a golden age of telecommunications.
In the context of enterprise communications, there is a solid lineup of tools to help drive more effective communication between internal and external audiences. One question remains, however; are customers actually leveraging these tools to make changes to key business processes, allowing them to create sources of new competitive advantage? In other words, is UCaaS transformative, or just another ‘shiny object” to marvel at before moving on? From what we’ve seen, the answer is most definitely and emphatically “Yes, it is absolutely transformative.”
The clients we’ve seen make the kinds of adjustments possible when given UCaaS tools have made an explicit decision to understand how the technology supports ideal business processes – not ones bound or limited by preexisting technologies. Having made that choice, they also take a cross functional approach, making sure that everyone, from IT to operations, accounting, and sales, are included and challenged to find better ways to get the job done.
So it’s no surprise to us that many projections show the sales of UCaaS solutions continuing to grow at a 25%+ CAGR. IT teams supporting smaller to midsized organizations were early adopters because of the economics. But now, adoption is driven far more by how UCaaS can change an organization, to free it to pursue the best process solutions. We’ll certainly be glad to see the market grow to nearly $8B in the next five years. What will be more satisfying, though, is knowing that significantly more billions in improved productivity and general performance was made possible by the solutions West IP Communications pioneered back in 2000.