Cloud business communications market is growing at an annualized rate of 23 percent generating revenues in excess of $2 billion per year – driven by UCaaS adoption, said Synergy Research Group.
Retail UCaaS services account for well over 70 percent of the Cloud business communications market.
The smaller wholesale UCaaS segment is growing considerably more strongly.
The report said balance of the Cloud business communications market comprises cloud communications (virtualized call control and UC applications), which are growing at a similar rate to retail UCaaS.
RingCentral is the Cloud business communications market leader based on quarterly revenues, thanks to its leadership in retail UCaaS and a strong position in wholesale UCaaS.
8×8, Mitel and ShoreTel are the top technology companies in Cloud business communications market.
Retail and wholesale UCaaS business suite services now generate revenue of well over $1.7 billion on an annualized basis. These include private, public and hybrid cloud service offerings.
Public UCaaS is the largest of the three sub-segments and is also growing the most rapidly.
United States accounted for 80 percent of total revenues from Cloud business communications in the first quarter of the year.
“Major barriers to cloud adoption are almost a thing of the past and consequently we are seeing continued erosion of on-premises PBX-based systems. Clearly these trends will continue over the next few years,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst.
RingCentral in UCaaS market
With a 19 percent market share by revenue, RingCentral is growing twice as fast as the overall UCaaS market, according to Synergy Research.
RingCentral’s flagship product, RingCentral Office, is ranked the highest by subscriber seats among all UCaaS vendors, growing at 53 percent year-over-year, which is 137 percent faster than its nearest competitor.
Synergy Research points out that revenue for the UCaaS market grew by 22 percent year-over-year in Q1 2017, while the on-premises enterprise voice market declined by 9 percent during the same period.
“Synergy’s report validates our leadership in the market and shows that we are breaking away from the competition in both revenue and installed base,” said Vlad Shmunis, founder, chairman and CEO of RingCentral.
