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Study Finds More Enterprises Turning to Cloud for Communications Needs

February 27, 2019
By Stefania Viscusi - Assignment Desk, Content Management

The debate between cloud and on-premises when it comes to technology adoption has been ongoing for quite a some time. While premises-based systems still have a special place for some businesses, it’s clear that cloud has become a necessary choice. 

One recent study by Frost & Sullivan (News - Alert) found the North American enterprise cloud communications market will reach a CAGR of 20 percent in the time period between 2017 and 2024, and an installed base CAGR of 23 percent, with over $17 billion in anticipated revenue by 2024.

This increase in demand is also leading the charge for technology developers and service providers to work together and launch new innovative offerings that make use of all the benefits offered from cloud communications capabilities.

From feature-rich telephony, to reliable and secure UCaaS solutions, there’s so much opportunity for growth in the large enterprise, even with it’s complex IT needs, where cloud solutions were once frowned upon.

This digital transformation at the enterprise level is typically guided through a trusted partner.

For communications service providers that means bringing more cloud offerings into the mix, offering the needed support and customer care as they make the transition, and providing access to advanced analytics reporting and the newest technologies like machine learning, AI and virtual reality.

Elka Popova, Digital Transformation Vice President at Frost & Sullivan commented on the studies findings saying, “As businesses adapt to an ever-changing competitive environment, they require a trusted partner that can effectively assist them in their business transformation and cloud migration journeys. CSPs are responding to this market demand by integrating hosted IP telephony and Unified Communications (News - Alert)-as-a-Service with customer care solutions and business workflows.”

Popova also noted that, "By 2030, programmable communications will dramatically change the industry paradigm by transforming communications and collaboration services into core components of critical business solutions."

Even with premises-based systems sticking around the numbers uncovered in the report show a sharp uptick in annual users of hosted VoIP and UCaaS.

“From 5.7 million in 2018 to 11.3 million in 2024, as programmable communications help providers tap unexplored customer segments and cross/up-sell to existing customers," Popova noted.

Edited by Maurice Nagle

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