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UCaaS Market Exploding, Enterprises Increase Adoption
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by Jason Price, UC & Conferencing Strategist at Select Communications (www. selectcommunications.com)
Synergy Research Group just released data from Q2 highlighting an explosion of growth in the unified- communications-as-a-service (UCaaS) market. According to the report, growth
is being driven by rapid UCaaS adoption among large enterprises, while a high number of legacy private branch exchange (PBX) systems across the business landscape creates massive upside potential for the market. Read on for a summary of Synergy’s report and what it means for businesses.
UCAAS GROWTH SNAPSHOT
• The UCaaS market is accelerating at an annualized rate of 29%.
• In total, the market is generating revenues exceeding $400 million per quarter and approaching $2 billion annually.
• Retail UCaaS services make up over 80% of the total market.
• The smaller wholesale segment of the market is building at 45%.
Synergy’s report also lists the UCaaS space’s 2017 market leaders. Based on quarterly revenues and subscriber totals, RingCentral is top of the list, with 8×8, Mitel, BroadSoft and Vonage rounding out the top five. The market continues to be heavily concentrated in the United States, accounting for over 80% of all revenue for Q2.
CAN THE UCAAS MARKET KEEP IT UP?
The answer is, most likely, “yes.” In the analysis, Duke noted how UCaaS is shifting from being a communication tool for small companies to an enterprise-level solution. This growing enterprise adoption, coupled with a large amount of organizations expected to migrate away from outdated technologies
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