Monday, 21 March 2016

Cloud Communications –Accelerators & Barriers to Adoption!

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legacy enterprise communication equipment suppliers are struggling to meet intricate and diverse customer demands with outdated product portfolios.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 breathing new life and excitement into this space. By leveraging a cloud delivery model and APIs, Cloud communications platforms make it simple, quick, and low cost to embed communications into any business process and thus attractive for adoption for any business. With growth rates of 150–200%, the cloud communications platforms market is clearly promising.

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.

Key Accelerators to Adoption of Cloud Communications:

·         No upfront investment in any Capex, no license fees
·         No hardware and software required, no special phones & no attendant console required
·         Scalability – highly flexible in scaling up and down
·         Distributed Contact Centers – call centers can be set up in different locations but monitored from one location
·         No need to have any IT team to manage the technology
·         No special server rooms etc required
·         No issues about technology obsolescence
·         CRM systems, ticketing systems and analytics tools can be easily integrated with open APIs
·         Built in redundancy at all levels ensures high availability
·         Customizable Extensive Reporting & Monitoring tools
·         Speed to Market – SMEs can get to markets and expand their reach much faster
·         Ability to quickly integrate all communication channels like SMS, voice, social media, email, etc to give a seamless experience to the end customer
·         Improved Customer Engagement which results in improved growth.

  However, the Indian market is evolving at a much slower pace compared to the  global markets, as providers must continually navigate the unique regulatory, telecom, competitive, and customer landscape.

Key Barriers to Adoption of Cloud Communications:
·         Lack of awareness – the awareness in the tier 2 and tier 3 cities is still much lower compared to the tier1 cities
·         Huge investment in legacy systems – the larger and more established enterprises have already invested heavily in traditional legacy systems
·         Connectivity and availability still heavily Telco dependent
·         Businesses see security as an issue which again is lack of knowledge
·         Not too many reliable solutions available in the Indian Market

All the barriers mentioned above are addressable and all we one needs is a little time to educate the market. Once that happens, the growth is going to be unstoppable and we are all going to see it happen.

                                                                                                             Written By,
         Reeta Gangwani 
 Ozonetel Systems Private Ltd

1 comment:

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