With the advent of various disruptive technologies and services like Skype, Whatsapp, Viber and more, Voice communications markets have seen their revenue streams declining over the years. The traditional revenue streams for operators were internet, voice and IDD (International Direct Dialing). This is not true anymore. Thus, the innovation in the traditional voice communication has more or less stagnated. Moreover, the mobile operators and SMS markets are threatened by over-the-top applications and are declining in many parts of the world. The traditional legacy enterprise communication equipment suppliers are struggling to meet intricate and diverse customer demands with outdated product portfolios.
Cloud communications platforms are on a path to disrupt traditional telephony equipment vendors. As enterprises become aware of these companies and understand the flexibility and cost efficiency benefits, cloud communications platforms have an enormous market opportunity across all industry verticals. Cloud communications providers have a unique opportunity to provide an incredibly rich set of communications solutions for enterprises with lower TCO (total cost of ownership), ease of adoption, faster integration with other back end systems like CRM & ticketing solutions and analytics tools. IDC forecasts that the Cloud Communications market will grow from global revenue of $123 million in 2013 to reach $7.5 billion in 2018 at a 127% CAGR. The global unified communication market size is expected to reach USD 75.81 billion by 2020, growing at a CAGR of 16.3% from 2014 to 2020.
The growth stems from the reality that enterprises are looking to transform their business processes and their customer engagements with mobile, global and virtualized solutions and legacy inflexible communications systems are a major handicap. Cloud Communication platforms not only help reduce costs but also help improve productivity and make enterprises more receptive to their growing customer demands.