6 Technologies that Boost the Growth of the UCaaS Market

The hybrid work model, combining face-to-face with remote work, is presented as an alternative to the new situation derived from the beginning of the end of the pandemic.

The increase in the number of employees working from home (2.86 million in Spain today) has resulted in organizations consolidating multiple communication functions and enabling cross-operation to ensure efficient collaboration, especially through the implementation of tools, such as UCaaS (Unified Communications as a Service) solutions, that help the development of this hybrid model.

The increase in the number of employees working from home (2.86 million in Spain today) has resulted in organizations consolidating multiple communication functions and enabling cross-operation to ensure efficient collaboration, especially through the implementation of tools, such as UCaaS (Unified Communications as a Service) solutions, that help the development of this hybrid model.

These solutions reached a value of 33,000 million euros in 2020 and it is expected that they will continue to grow at an annual rate of 25% until 2025, in which the forecast is to reach 56,500 million euros.

In this context, unified communications systems have become the basis of professional activity, allowing people to work together, share content and hold meetings. The UCaaS market continues to grow strongly and is expected to expand at a compound annual growth rate of 23.6% between 2021 and 2028 and to continue to grow at an annual rate of 25% until 2025. For example, the sector of telephony has the largest share in the UCaaS market with a 41.73% share.

These solutions enable organizations to use services such as instant messaging, videoconferencing or video calling services, helping to minimize total cost of ownership (TCO) and IT expenses and stay up-to-date with the latest regulatory standards. The addition of features, such as real-time speech recognition technologies and advanced IT security, enables product differentiation among UCaaS providers.

Therefore, masvoz, a company with more than 19 years of experience in communications services for businesses, presents the technologies that have driven and fostered the growth of the UCaaS market in the last year:

• The growing preference among companies for a flexible environment, which can potentially help implement changes more efficiently, is also driving public cloud-based platforms, which accounted for more than 73% of revenues in 2020 in the cloud technology sector. This has allowed them to reduce waiting times in the implementation of new products and offers the opportunity to implement scalable platforms based on pay-per-use. As a result, organizations of all sizes and industries can comfortably switch from legacy communication platforms and practices to more advance and efficient UCaaS solutions in the public cloud.

• Private clouds, on the other hand, offer a greater degree of customization and allow companies to subscribe to services according to their needs and specifications. The implementation of UCaaS solutions based on the private cloud also benefits organizations in the form of 24/7 support services, contracted capacities, service level agreements and guarantees more secure and personalized experiences. The private cloud deployment model is expected to offer significant growth opportunities for the market through 2028.

• Videoconferences or video calls gained a very significant boost, going from 55.1% in 2019 to 77.7% in 2020, as stated in the report “Digital Society in Spain: the year everything changed”, edited by Fundación Telefónica. Videoconferencing enables users to foster healthy interpersonal relationships and facilitates more efficient decision-making during meetings and conferences.

• Application Programming Interfaces (APIs) develop custom applications that help organizations optimize their business operations and communications. In this way, companies can integrate internal and external communications into most processes, leading to a significant increase in efficiency and productivity while keeping costs competitive.

“The need to be flexible to changes and the evolution of technology is driving the adoption of UCaaS solutions by companies. Over the last year we have seen significant progress in the evolution of these solutions and they have proven to live up to what was demanded of them, becoming, in many cases, essential. The adoption of these services allows adjusting to the models of the future and maintaining the necessary level of competitiveness, at the same time that communication and service with customers is also improved,” explains Santi Vernet, CCO of masvoz.

The strong push from IT and telecommunications companies to implement more efficient collaboration among their globally distributed teams is driving the need to implement UCaaS solutions. Providers in the information technology and telecommunications industry often have to work with high-profile clients, such as government departments and public administrations, requiring a secure and efficient exchange of information.