Frost & Sullivan has recently updated their North American Hosted IP Telephony and UCaaS Market, Forecast to 2023. The news continues to be positive. The report shows that we can expect to continue on the current growth trajectory through 2023. In 2016, the market experienced healthy growth of 32.1 percent in terms of installed users and 30.6 percent in terms of revenue (without access).
Continued Growth Forecast
“Growing customer demand for more flexible technology consumption models to support digital transformation projects represents a key growth driver. Premises-based communications solutions reaching end of life and increasing availability of compelling UCaaS offerings are also encouraging the move to cloud communications.”
Not Limited To Big Providers
The other good news is that this growth is not limited to only a few big providers.
“Currently, the market is relatively untapped and can support a large number of providers with a diverse background and skill set. As the market matures, highly diversified telecommunications companies and software-as-a-service (SaaS) providers are likely to dominate the market,” said Frost & Sullivan Digital Transformation Vice President Elka Popova.
The report states that such issues as security, control, and more flexible customization will be important drivers as companies continue to move away from premise-based systems. Bigger providers must deliver a more “cookie-cutter” solution in order to maintain scale. This is the antithesis of what customers are looking for.
We believe that a local provider (backed by an outstanding white label partner like SkySwitch) is best positioned to deliver the customized solutions that many companies are looking for.