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Strong Year in Unified Communications Demand Expected to Help Drive Adoption of Phone Systems

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Strong Year in Unified Communications Demand Expected to Help Drive Adoption of Phone Systems

 
April 23, 2015

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  By Susan J. Campbell, TMCnet Contributing Editor
 


The opportunity to streamline communications and costs in disparate office environments has a number of organizations adopting unified communications. At the same time, there continues to be a heavy push toward leveraging the cloud as it eases the burden on deployment, support and hardware investments. Phone systems are taking on a whole new look, giving users capabilities that were previously out of reach.


In a recent UC Insight piece, Chris Middleton highlighted the latest projections published by research firm IDC (News - Alert). According to these recent findings, 24 percent of IT budgets are expected to be allocated to cloud solutions. Collaboration and conferencing solutions comes in at 16 percent, along with content management systems and IT infrastructure management as companies examine the opportunity to outsource their unified communications and voice services.

Data out of Hanover Research suggests that user behavior is driving the adoption of particular unified communications and collaboration solutions. Three-way calling is in high demand among 60 percent of participants, while 41 percent demand conference call bridges and 37 percent want extension calling for other locations.

Such numbers demonstrate a growing demand for solutions that support instant connections. At the same time, this same study found that the majority of SMBs are unfamiliar with the terminology associated with telecommunications, including IP PBX, hosted PBX, SIP trunks and unified communications.

Data released by MartketsandMarkets at the end of 2014 showed the Unified Communications (News - Alert) as a Service (UCaaS) market experienced significant growth as companies throughout the market adopted the technologies and services needed to support collaboration without making significant investments in hardware, software or support. By 2019, the market is expected to hit $23.34 billion, which is a significant bump from the $13.10 billion reached in 2014.

This focus will help to push the cloud market overall to $350 billion by 2017, according to Gartner (News - Alert). This mass adoption tends to get associated with the large enterprise as widespread attention and collaboration demand is mounting, especially in communications. Providers like Swyx insist that en mass movement is happening in the SME segment of the market due to the demand for unified communications and collaboration solutions. For its products targeted to this segment, the unified communications software provider reported a 126 percent year-on-year increase.

The cloud is certainly attractive for those looking to examine their phone systems. Vonage (News - Alert) is on the forefront of these conversations, bringing innovative solutions to every segment of the business market. In a recent interview with NetworkWorld, CEO Alan Masarek noted growth has been strong in this area. In 2015, the company expects business customers to represent 25 percent of revenues, which is a growth rate of 40 percent. Businesses are expected to be strong customers for the company as phone systems are changing shape, providing new capabilities, flexibility and features to support the changing organization.




Edited by Stefania Viscusi
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