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Growth Opportunities Emerge for Cloud Communications Providers Embracing Holistic Services
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UCaaS vendors that offer programmable solutions and partner with third-party software vendors will thrive in a challenging market, finds Frost & Sullivan

LONDON, Nov. 28,  2018 /PRNewswire/ --  Providers of Hosted Internet Protocol (IP) telephony and Unified Communications-as-a-Service (UCaaS) in the European market are enhancing their portfolios as well as engaging in mergers and acquisitions to gain an edge in the intensely competitive market. Forward-looking providers are adopting a more consultative sales approach by positioning cloud communications as a critical part of digital transformation, and are embedding communications in popular third-party software to streamline workflows.

"While sophisticated, feature-rich UCaaS solutions are critical for service provider success, the future is programmable communications," said Elka Popova, Unified Communications & Collaboration Programme Director. "Providers need to deliver flexible application programming interfaces (APIs) and Communications Platforms-as-a-Service (CPaaS) to hold their own against the next wave of innovations from non-UC companies. Meanwhile, competitors that employ analytics tools to combine workflow/business app data with communications stats will be able to present clients with deeper insights into business issues such as productivity bottlenecks and business process disruptions."

Frost & Sullivan's recent analysis, European Hosted IP Telephony and UCaaS Market, Forecast to 2024, discusses important customer, competitive, and technology trends in the market. It identifies key growth opportunities and service provider success strategies, as well as offering a market size estimate and installed base and provider revenue forecasts. It also includes a provider market share and competitive position analysis.

For further information on this analysis, please click here.

"Given that the European market is not as fragmented as the US market, the entry barriers are high for smaller competitors that could potentially present innovative solutions," noted Popova. "The consequent feature parity in hosted IP telephony offerings compels service providers to differentiate themselves through value-added capabilities such as analytics, advanced contact centres, extensive regulatory certifications, engaging interfaces, or creative services packaging and pricing."

The Benelux and the Nordic countries, which have been the earliest adopters of hosted IP telephony and UCaaS, will experience the highest penetration, whereas the under-penetrated Central and Eastern European countries will witness the highest growth rates.

Service providers can achieve greater success by capitalising on the growth opportunities in the following areas:

  • Enable solution enhancements such as mobility, advanced conferencing and collaboration, Artificial Intelligence (AI).
  • Harness tangential services such as broadband, multi-protocol label switching (MPLS), and software-defined wide area network (SD-WAN).
  • Tailored solutions for micro businesses, large enterprises, and vertical industries.
  • Operational improvements in service reliability and scalability, provisioning and billing systems, digital customer engagement, and customer service and support.
  • Competitive pricing, simple and easy-to-use solutions, and digital channels for the small business customer segment.
  • Mobile-first solutions for prosumers, small office home office (SOHO), and very small businesses that are looking to switch from their desktop phones and fixed-line phone services.
  • Advanced features and flexible customisation and integration options for the medium and large business segments.

European Hosted IP Telephony and UCaaS Market, Forecast to 2024 is part of Frost & Sullivan's global Connected Workplace Growth Partnership Service program.

About Frost & Sullivan

For over five decades, Frost & Sullivan has become world-renowned for its role in helping investors, corporate leaders and governments navigate economic changes and identify disruptive technologies, Mega Trends, new business models and companies to action, resulting in a continuous flow of growth opportunities to drive future success. Contact us: Start the discussion.

European Hosted IP Telephony and UCaaS Market, Forecast to 2024
K277-64

Contact:
Kristina Menzefricke
T: +44 (0) 208 996 8589
E: kristina.menzefricke@frost.com  
http://ww2.frost.com

 

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