6 UCaaS Trends to Watch Out For in 2023

During the pandemic, organizations have been quick to adapt to remote or hybrid work to comply with social distancing. For many companies, the first step was to implement UCaaS (Unified Communications as a Service) services, such as videoconferencing and business phone systems that can be accessed from any device or location with an Internet connection. This created a global surge in demand for UCaaS solutions across all sectors, fueling significant industry growth over the past two years.

In fact, research firms like Grand View Research and Market Research Future still forecast more than 20% annual growth in global UCaaS sales, topping $210 billion by 2028 globally. What will continue to drive such a high increase? Here are the drivers for the rise of UCaaS, as well as the key trends to watch in 2023.

6 UCaaS Trends to Watch Out For in 2023

1) Goodbye Legacy Systems. Hello Cloud!

In the pandemic, many organizations accelerated their cloud migration plans to allow their Work From Home (WFH) environments to thrive. In this way, companies discovered the many benefits of cloud-based infrastructure, and many have since expanded their cloud migration plans. Thus, according to Gartner, more than half of business spending on IT will move to the cloud by 2025.

As organizations further reap the benefits of cloud environments, they are abandoning on-premises hardware and early VoIP systems that lack the reliability and modern security measures necessary to meet customer expectations and compliance regulations. Additionally, businesses have realized that UCaaS reduces the burden on IT departments and enables greater flexibility, security, and cost savings. These benefits have prompted companies to seek a complete migration to the cloud and abandon already outdated legacy systems.

2) Cybersecurity Will Be Key

As part of the trend towards hybrid work environments, BYOD (Bring Your Own Device) is now common practice. Employees download company apps to personal devices, creating new challenges for IT staff managing potential vulnerabilities. As a result, telecommunications providers will increasingly invest in cybersecurity measures to prevent cyber attacks and address more sophisticated customer security requirements, such as SSO (single sign-on) and TLS (transport layer security).

3) AI Will Take Advantage of Customer Experience and Efficiency Gains

Artificial Intelligence (AI) has become incredibly sophisticated in areas like natural language processing, decision-making, and predictive analytics. When this functionality is combined with UCaaS, AI can deliver greater personalization across the entire customer experience (CX) to improve user interactions. For example, AI-based communication tools such as chatbots or voicebots can answer customer questions and provide step-by-step instructions to resolve call center queries.

Starting in 2023, enterprises will increasingly adopt AI-powered UCaaS features to take advantage of new efficiency and productivity gains. For example, Artificial Intelligence enables the conversion of voicemail messages to text messages, automates note taking during meetings, and improves workflows.

4) Mobile Integrations

UCaaS adoption has grown rapidly due to its ability to allow employees to work remotely, regardless of location or device. Today’s mobile-dominated workforce requires integration with iOS and Android devices to ensure seamless mobile calls, texts and emails. That same workforce expects messaging integrations with CRM tools and mobile voice integration with ERP and more efficient management tools.

5) 5G and Work From Anywhere

The Work-From-Home (WFH) model only works if people have access to constant and reliable connectivity. Wi-Fi fueled the WFH model during the pandemic, but now it is morphing into Work From Anywhere (WFA). Thus, it is expected that in 2023 5G will allow employees to access communication services in the cloud from anywhere and on any device.

6) Consolidation of Providers and Services

Rather than invest in technological innovation, a faster and more cost-effective way to acquire new services and capture greater market share is for providers to participate in mergers and acquisitions. In this regard, increased M&A activity is expected across the spectrum of UCaaS providers in 2023, driven largely by the need to fill gaps in service offerings or consolidate resources to increase profitability.

For example, UCaaS providers are seeing increased opportunities to add Communications Platform as a Service (CPaaS) space and/or expand their Contact Center as a Service (CCaaS) offerings. Gartner predicts that 95% of global enterprises will use CPaaS functionality by 2025. Additionally, while CCaaS has been popular with SMBs for several years, we will see higher adoption rates among large organizations, motivating vendors to acquire or expand their CCaaS offerings.

Similarly, UCaaS customers will make similar changes. During the pandemic, businesses turned to essential services like phone and video communication. Now, hybrid work is expected to be the default by 2024, pushing organizations to consolidate their communication providers. While some use Zoom or Microsoft Teams for specific services, organizations are increasingly demanding a comprehensive and scalable ecosystem of UCaaS services from one provider capable of meeting all their needs.

In conclusion, 2023 will mark the beginning of a deeper focus on cloud migration, cybersecurity measures, Artificial Intelligence, 5G and mobile integrations, and further consolidation of providers and services. UCaaS will maintain its superiority over legacy on-premises communication systems. It will gain even more momentum as organizations consolidate their post-pandemic work environments and look for resources that will ease the burden on IT and offer cost savings over legacy options.