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Wholesale VoIP Feature Article

SMBs and VoIP Driving Cloud UC and UCaaS Markets

January 13, 2017

By Laura Stotler, TMCnet Contributing Editor

Small and mid-size businesses (SMBs) will be the main adopters of cloud-based unified communications (UC) solutions over the next few years. According to a survey from BroadSoft (News - Alert), cloud UC market share is set to jump close to six times by 2020, comprising around 41 percent of the larger UC space.

The number is significant, and points to a steady increase in confidence and actual deployments of cloud-based UC, particularly on the part of SMBs. In fact, UCaaS will make up just about half of the overall market for small businesses by 2020, based on its cost effectiveness, flexibility and huge number of benefits and features. BroadSoft found that for medium-sized businesses, UCaaS will rise to 37 percent by 2020 and will make up 20 percent of the UC space for enterprises in that timeframe.

The findings echo research from MarketsandMarkets, which forecasts the total UCaaS market will grow from $17.35 billion in 2016 to $28.69 billion by 2021. The firm also singled out SMBs as a major market driver, along with benefits like low cost of ownership and the prevalence of the pay-per-use model for charging end users. Other growth drivers include the general technology push toward mobility and BYOD, as well as the convenience and benefits of integrating communication services on a single platform.

Of course, VoIP is becoming ubiquitous in the telecom sector and is proving to be a major driver in UCaaS adoption, thanks to its many benefits and cost efficiencies. The travel and hospitality industries, logistics and transportation, BFSI and telecom and IT sectors are all embracing VoIP as part of their UCaaS deployments. And North America is forecast to hold the largest share of the UCaaS market through 2021, with the APAC region set to experience rapid adoption as well during that timeframe.

Interestingly, the BroadSoft survey found that 42 percent of those queried will use mobile devices for more than half of their UC interactions. And a full third of all small businesses plan to use mobile-only UCaaS along with hosted PBX (News - Alert) solutions, which will eliminate the need for legacy desk phones.

It’s an exciting time in the communications realm, and cloud UC and UCaaS solutions are poised to play a major role, thanks to their benefits, flexibility, scalability and attractive price point.

Edited by Alicia Young

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