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Key Strategies to Sustain Growth in a Transforming Market
10-Jan-2019
North America
Market Research
K279-01-00-00-00
TE03866-NA-MT_22780
The North American hosted IP telephony and UCaaS market continues to expand at a steady pace, creating significant growth opportunities for providers with differentiated solution offerings, robust platforms and architectures, and effective go-to-market strategies tailored for specific customer segments. Both demand and supply factors are driving market growth.
Most businesses have developed a solid understanding of the cloud model benefits and are evaluating cloud services as part of their communications and broader IT upgrade projects. The rapidly evolving nature of work, shifting technology requirements and the need to stay afloat despite ever-more fierce competition are compelling IT/telecom investment decision makers to look for advanced communications solutions delivered via more flexible consumption models. The growing number of remote and mobile workers, the influx of Millennials into the workforce, and the simultaneous globalization and localization of business are creating strong demand for cloud services that deliver operational efficiencies, productivity benefits and a competitive edge.
An increasing variety of hosted IP telephony and UCaaS offerings is providing viable options to businesses of different size, vertical industry and technology requirements. Improving VoIP and cloud services quality, reliability and security are instilling confidence in buyers to drive hosted IP telephony and UCaaS penetration beyond early adopters.
However, businesses are only gradually moving their communications and IT workloads to the cloud. They are taking time to carefully assess the unique benefits and challenges of migrating different software workloads, users (e.g., by function) and business sites to cloud services. Continually evolving technologies and service provider models as well as the constantly changing competitive landscape due to ongoing M&A activity are deterring more conservative decision makers from making a final commitment and compelling businesses to apply greater scrutiny when selecting their solution and provider.
Research Scope
This study provides and in-depth analysis of the North American hosted IP telephony and UCaaS market. It identified market growth drivers and restraints and provides installed base and service provider revenue projections until 2024. Unit estimates and forecasts are presented in terms of installed users (also referred to as seats), which are roughly equivalent to software licenses and endpoints/stations as of the end of any given year.
Research Highlights
Revenue forecasts for hosted IP telephony are based on an average recurring monthly charge incurred by enterprise customers on a per-seat/per-user basis. Monthly recurring charges generally include private branch exchange (PBX) functionality, local and long-distance calling, and any additional features and applications (voicemail/unified messaging, automated attendant, conferencing, etc.) purchased by customers as part of the hosted IP telephony or UCaaS bundle.
Our revenue forecasts do not include one-time equipment costs—such as those of IP handsets, routers, switches or gateways—incurred by enterprise customers. Certain equipment costs may, however, be part of total revenues, if the service provider is leasing or renting the equipment and its cost is not itemized on the monthly invoice. Installation and other one-time services revenues are included.
Key Conclusions
The study encompasses both multi-tenant and multi-instance hosted IP telephony and UCaaS solutions.
A key element of this study is the discussion of best practices and key growth strategies. Market participants can use this analysis to adjust their product roadmap and business models to compete more effectively in an increasingly dynamic market.
Author: Elka Popova
Purpose of this Experiential Study
5 Step Process to Transformational Growth
Strategic Imperatives for Hosted IP Telephony and UCaaS Providers
State of the Market
Market Drivers
Market Restraints
Installed Users and Revenue Forecast
Percent Installed Users by Country
Percent Installed Users by Customer Size
Percent Installed Users by Type of Access
Pricing Trends and Forecast
Installed Users Penetration of Addressable Market
Soft and Mobile Clients Penetration of Installed Users
Provider Share of Market Revenue
Provider Share of Installed Users
Macro to Micro Visioning
Transformation in the UCaaS Industry Ecosystem—2017
Visioning Scenarios for the Hosted IP Telephony and UCaaS Market
Top Predictions for the Hosted IP Telephony and UCaaS Market
Levers for Growth
Growth Opportunity 1—Cloud Contact Center
Growth Opportunity 2—Mobile-first Strategy
Growth Opportunity 3—Advanced Collaboration
Growth Opportunity 4—Open APIs and CPaaS
Growth Opportunity 5—Mid-market and Large Enterprise
Growth Opportunity 6—Micro-businesses
Growth Opportunity 7—Channel Development
Growth Opportunity 8—Technology Expertise Outsourcing
Growth Opportunity 9—Internal Process Optimization
Growth Opportunity 10—User Adoption Services
Growth Opportunity 11—International Expansion
Growth Opportunity 12—Analytics Tools
Growth Opportunity 13—Customer Portal
Growth Opportunity 14—Tailored Packaging and Pricing
Growth Opportunity 15—Improved Customer Experience
Growth Opportunity 16—Hybrid Architectures
Growth Opportunity 17—Adjacencies/Up-sell/Cross-Sell
Growth Opportunity 18—Integrated Cloud Services
Growth Opportunity 19—AI Use Cases
Growth Opportunity 20—The “New” UC
Growth Opportunity 21—Digital Customer Engagement
Growth Opportunity 22—Vertical Strategies
Growth Opportunity 23—Cloud Migration Flexibility and Incentives
Growth Opportunity 24—Freemium Offers and Free Trials
Growth Opportunity 25—A Transformation Partner
Growth Opportunity 26—Services Localization
Total Growth Opportunity Matrix 1-20—Vision and Strategy
Total Growth Opportunity Matrix 21-26—Brand and Demand
Total Growth Opportunities Matrix Chart
Growth Strategies for Your Company
Prioritized Opportunities through Implementation
Legal Disclaimer
List of Other Service Providers
Partial List of Companies Interviewed
List of Acronyms Used
List of Exhibits
List of Figures
- 1. Total Hosted IP Telephony and UCaaS Market: Key Market Drivers, North America, 2018–2024
- 2. Total Hosted IP Telephony and UCaaS Market: Key Market Restraints, North America, 2018–2024
- 3. Total Hosted IP Telephony and UCaaS Market: Disruptive Forces, North America, 2017
List of Charts
- 1. Total Hosted IP Telephony and UCaaS Market: Installed Users and Revenue Forecast, North America, 2016–2024
- 2. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users by Country, North America, 2017
- 3. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users by Customer Size, North America, 2017
- 4. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users by Type of Access, North America, 2017
- 5. Total Hosted IP Telephony and UCaaS Market: Average Revenue per User per Month (Without Access), North America, 2016–2024
- 6. Total Hosted IP Telephony and UCaaS Market: Penetration Analysis, North America, 2016–2024
- 7. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users with Desktop Soft Clients, North America, 2017
- 8. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users with Mobile Soft Clients and Native Mobile Dialers, North America, 2017
- 9. Total Hosted IP Telephony and UCaaS Market: Percent Revenue Breakdown (Without Access), North America, 2017
- 10. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users Breakdown, North America, 2017
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| Deliverable Type | Market Research |
|---|---|
| No Index | No |
| Podcast | No |
| Table of Contents | | Executive Dashboard~ || Purpose of this Experiential Study~ || 5 Step Process to Transformational Growth~ || Strategic Imperatives for Hosted IP Telephony and UCaaS Providers~ | Growth Environment~ || State of the Market~ || Market Drivers~ || Market Restraints~ | Market Forecasts~ || Installed Users and Revenue Forecast~ || Percent Installed Users by Country~ || Percent Installed Users by Customer Size~ || Percent Installed Users by Type of Access~ || Pricing Trends and Forecast~ || Installed Users Penetration of Addressable Market~ || Soft and Mobile Clients Penetration of Installed Users~ || Provider Share of Market Revenue~ || Provider Share of Installed Users~ | Visioning Scenarios~ || Macro to Micro Visioning~ || Transformation in the UCaaS Industry Ecosystem—2017~ || Visioning Scenarios for the Hosted IP Telephony and UCaaS Market~ || Top Predictions for the Hosted IP Telephony and UCaaS Market~ | Growth Pipeline~ || Levers for Growth~ | Vision and Strategy—Growth Opportunities~ || Growth Opportunity 1—Cloud Contact Center~ || Growth Opportunity 2—Mobile-first Strategy~ || Growth Opportunity 3—Advanced Collaboration~ || Growth Opportunity 4—Open APIs and CPaaS~ || Growth Opportunity 5—Mid-market and Large Enterprise~ || Growth Opportunity 6—Micro-businesses~ || Growth Opportunity 7—Channel Development~ || Growth Opportunity 8—Technology Expertise Outsourcing~ || Growth Opportunity 9—Internal Process Optimization~ || Growth Opportunity 10—User Adoption Services~ || Growth Opportunity 11—International Expansion~ || Growth Opportunity 12—Analytics Tools~ || Growth Opportunity 13—Customer Portal~ || Growth Opportunity 14—Tailored Packaging and Pricing~ || Growth Opportunity 15—Improved Customer Experience~ || Growth Opportunity 16—Hybrid Architectures~ || Growth Opportunity 17—Adjacencies/Up-sell/Cross-Sell~ || Growth Opportunity 18—Integrated Cloud Services~ || Growth Opportunity 19—AI Use Cases~ || Growth Opportunity 20—The “New” UC~ | Brand And Demand—Growth Opportunities~ || Growth Opportunity 21—Digital Customer Engagement~ || Growth Opportunity 22—Vertical Strategies~ || Growth Opportunity 23—Cloud Migration Flexibility and Incentives~ || Growth Opportunity 24—Freemium Offers and Free Trials~ || Growth Opportunity 25—A Transformation Partner~ || Growth Opportunity 26—Services Localization~ | Growth Opportunities Matrix~ || Total Growth Opportunity Matrix 1-20—Vision and Strategy~ || Total Growth Opportunity Matrix 21-26—Brand and Demand~ || Total Growth Opportunities Matrix Chart~ | Growth Strategy and Implementation~ || Growth Strategies for Your Company~ || Prioritized Opportunities through Implementation~ || Legal Disclaimer~ | Appendix~ || List of Other Service Providers~ || Partial List of Companies Interviewed~ || List of Acronyms Used~ || List of Exhibits~ |
| Predecessor | K1E0-01-00-00-00 |
| List of Charts and Figures | 1. Total Hosted IP Telephony and UCaaS Market: Key Market Drivers, North America, 2018–2024~ 2. Total Hosted IP Telephony and UCaaS Market: Key Market Restraints, North America, 2018–2024~ 3. Total Hosted IP Telephony and UCaaS Market: Disruptive Forces, North America, 2017~| 1. Total Hosted IP Telephony and UCaaS Market: Installed Users and Revenue Forecast, North America, 2016–2024~ 2. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users by Country, North America, 2017~ 3. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users by Customer Size, North America, 2017~ 4. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users by Type of Access, North America, 2017~ 5. Total Hosted IP Telephony and UCaaS Market: Average Revenue per User per Month (Without Access), North America, 2016–2024~ 6. Total Hosted IP Telephony and UCaaS Market: Penetration Analysis, North America, 2016–2024~ 7. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users with Desktop Soft Clients, North America, 2017~ 8. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users with Mobile Soft Clients and Native Mobile Dialers, North America, 2017~ 9. Total Hosted IP Telephony and UCaaS Market: Percent Revenue Breakdown (Without Access), North America, 2017~ 10. Total Hosted IP Telephony and UCaaS Market: Percent Installed Users Breakdown, North America, 2017~ |
| Author | Rob Arnold |
| Industries | Telecom |
| WIP Number | K279-01-00-00-00 |
| Is Prebook | No |
| GPS Codes | 9717-C3,9705-C1,9610,9656,9724 |
Growth Opportunities in the North American Hosted IP Telephony and UCaaS Market, Forecast to 2024
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