Cloud UC market penetration set to grow multi-fold

Cloud UC market penetration is set to triple in the large enterprise segment, grow 7-fold in the mid-market and almost quintuple in the small business segment by 2020, according to a sample of delegates who attended BroadSoft's 2015 Connections conference.

They expressed views on the adoption of cloud and mobile UC solutions, the competitive landscape and how far OTT team messaging and collaboration applications are disrupting established business productivity tools such as email.

The survey deduces that UCaaS and hosted PBX market penetration for new lines shipped could increase nearly six times to 41% over the next five years, with the shift from premise to cloud UC underway in all market segments.

UC will become increasingly mobile, according to 39% of respondents who believe that 42% of UC interactions for businesses of all sizes will occur via mobile devices by 2020, while 33% of small businesses will opt for mobile-only UCaaS/hosted PBX solutions, making desk phones redundant in such circumstances.

OTT integrated messaging and collaboration applications will disrupt the business email market, reckons 83% of survey respondents, with just 16% expecting email to 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 value proposition, and access to a large and growing market opportunity with attractive margins," said BroadSoft CMO Taher Behbehani.

"Enterprise UCaaS is proving disruptive and this opportunity is not lost on service providers and industry leaders as 92% of survey respondents rate UCaaS/Hosted PBX as their preferred technology solution strategy, while only 8% are leading sales efforts with premise-based PBX."

BroadSoft has over 700 customers in 75-plus countries. According to Frost and Sullivan, in 2015 BroadSoft accounted for 41% UCaaS global market share.

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