Revenue in the unified-communications-as-a-service market (UCaaS) is expected to nearly double in just five years. That comes from MarketsandMarkets, which in a new report says UCaaS revenue will rise from $13.1 billion in 2014 to more than $23.3 billion by 2019. That’s a compound annual growth rate of 12.2 percent.
That’s certainly good news for companies such as 8×8, ShoreTel and RingCentral, which Synergy Research Group recently said held 36 percent of UCaaS market share. The same report also mentioned Fonality, Vocalocity and Mitel among the market leaders in number of subscribers.
Small and medium enterprises are increasingly turning to UCaaS services to improve communication among its personnel. Advantages offered include: pay as per the need and requirement; cost-effectiveness; and reduction of travelling time.
There are still many untapped or less explored markets for UCaaS that hold tremendous opportunity, MarketsandMarkets said. Its successful adoption in large organizations taking into account the security, privacy, and confidentiality of data is still the biggest challenge to this market.
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