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BroadSoft Survey Reveals Hosted PBX Will Surpass On-Premises PBX

February 09, 2017
By Frank Griffin, Contributing Writer

Mobility integration, team collaboration and cloud contact center capabilities are all playing important roles in the way enterprises are assessing their communications needs. While traditional on-premises systems still provide some valuable service, they are not able to compete with the scalability and agility cloud delivers. The 2nd Annual BroadSoft survey of global telecom providers and industry leaders has revealed just as much, with more than half or 51 percent of the respondents stating they are expecting to adopt cloud Unified Communications (UCaaS/Hosted PBX) by 2020, surpassing premises-based PBX.



According to the survey, small businesses with less than 100 employees will increase their UCaaS/Hosted PBX (News - Alert) share by 55 percent, midmarket business segment with 100 to 999 employees by 49 percent, and large enterprises with more than 1,000 employees by 45 percent. One of the biggest reasons highlighted by the respondents was the ease in which cloud makes it possible for adopting advanced UC features, which they believe contribute to higher customer value and revenue opportunities. This sentiment was shared by 76 percent of the survey respondents.

Even though early stage cloud adoption was made by small businesses, medium and large enterprises have been catching up with increases of double-digit rates. The survey was conducted in the fourth quarter of 2016 at the BroadSoft annual users’ conference amongst 130 global telecom providers and industry leaders.

Taher Behbehani, chief digital and marketing officer, BroadSoft, said on-premises PBX systems are not being replaced like for like at their end of life or being upgraded, which is responsible for the industry arriving at a tipping point. He goes on to say, “The cloud is viable, broadband can accommodate it, the PBX vendors are no longer around and workers need more mobility. All of this points towards cloud adoption and digital mobile apps. We are finally reaching the stage where technology will help improve the way people work rather than dictate how they should do it.”

BroadSoft revealed mobile integration and experience are key drivers of cloud UC, with native mobile integration delivering a more integrated experience. This is backed by 89 percent of respondents who stated it is an important requirement for mobile solutions, and 90 percent of the UC business users will require mobile integration. These are two valuable data points for telcos in 2017 for coming up with native end-to-end mobile business experiences OTT's are not providing.

The other two drivers are cloud contact center solutions and team collaboration, which will be key opportunities for telecoms as enterprises increase their contact center seats in the cloud and team collaboration into UCaaS.

While Broadsoft’s predictions are always appreciated, it has many more insights to give. That’s why the company is participating in ITEXPO this week down in Florida. Earlier today, Mark C. Straton, VP, Product Marketing and Media Relations, took part in a session titled “Special General Session: Cloud UC - Innovation Awaits.” Only time will tell what exciting news Broadsoft will share with us next.




Edited by Alicia Young

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