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Increasing Demand for Enterprise Mobility and Mobile Workforce to Drive Unified Communication as a Service Market

Article Description

Unified communication as a service (UCaaS) is an upcoming technology and has attracted the interest of a number of developer communities and enterprises.  It is a pre-integrated, standardized, permanently updated, and ready-to-go service and improves productivity by accelerating decision-making processes in businesses, in addition to reducing costs. In the communication industry, UCaaS presents a customized software platform for providing enhanced connectivity, supporting the integration of numerous functions such as directory services, email, and telephony, among others. It also enables communication for a wide range of users across medium and small enterprises and businesses having cloud-based access, which is the central driver for the UCaaS market.

High Reliability and Low Operating Costs of UCaaS Solutions to Boost UCaaS Market

The increasing demand for enterprise mobility and mobile workforce are amongst the prime factors fuelling the market for UCaaS. Furthermore, the numerous advantages associated with the usage of UCaaS solutions, including high reliability and low operating costs, are increasing their demand within a number of enterprises. In addition, the increasing adoption of mobile devices such as tablets, laptops, and smartphones is also stimulating the development of the market for UCaaS solutions. On the other hand, factors such as the absence of awareness among SMEs have resulted in a low adoption rate of UCaaS solutions, thus impeding the growth of the market.

Shifting Focus of Service Providers towards Hosted UCaaS Solutions to Propel Market

On the basis of service type, the market is segmented into contact center services, telephony services, collaboration services, and UC application services. Amongst these, in 2013, telephony services held the biggest share in the market and are predicted to maintain their dominance in the coming years. On the basis of deployment model, the UCaaS market is segmented into hosted/cloud and on-premise.  The segment of on-premise UCaaS held the biggest share in the market in 2013 as the majority of service providers and customers of telecommunication network equipment within Asia Pacific and Rest of the World (RoW) prefer on-premise UCaaS solutions.

On the other hand, it is predicted that the demand for on-premise UCaaS solutions will decrease in the coming years owing to the shifting focus of service providers towards hosted UCaaS solutions in the coming years. The reasons for the downfall of on-premise solutions is the rising capital expenditure needed for the deployment of on-premise solutions. In addition, the soaring cost of ownership is also impeding the development of on-premise UCaaS solutions.

North America UCaaS Market Emerges as the Biggest Market

In terms of geography, the global UCaaS market is segmented into Europe, North America, Asia Pacific, and RoW.  Amongst these, North America dominated the market in 2013 and was accountable for more than half of the revenue in the market and is anticipated to maintain its dominance in the coming years. The reason for the dominance of this region is the consistent rise in tech-savvy users, gadgets, and rising demand for cutting-edge communication services. On the other hand, Asia Pacific is predicted to be the most swiftly developing region in the coming years.

Browse the full Global Unified communication as a service (UCaaS) Market report at

Cisco Systems, Inc., IBM Corporation, Alcatel-Lucent SA, Unify, Inc., Hewlett-Packard Development Company, L.P., West Corporation, Verizon Communications, Telstra Corporation Limited, Avanade Inc., and Mitel Networks Corporation, among others, are the major players dominant in the market.