Public cloud leads UCaaS market: study

Staff writer
20 Dec 2013
00:00

Public cloud deployments account for more than half of Unified Communications as a Service (UCaaS) business subscribers, but the private cloud segment is enjoying higher growth with subscriber numbers increasing 51% in the last four quarters.

A study by Synergy Research Group found public cloud accounts for 56% of all UCaaS business suite subscribers, and 50% of quarterly revenues. In total, UCaaS subscriber numbers are growing at 30% annually.

In aggregate, five operators account for over 50% of UCaaS service revenues, with 8x8 holding on to the lead with a 14% market share. This is followed by ShoreTel, RingCentral, Mitel and Vocalocity.

Other leading operators include Fonality, West IP and iCore Networks. North America continues to account for no less than 87% of UCaaS subscribers.

Jeremy Duke, Synergy Research founder and chief analyst said. “We continue to see UCaaS solutions competing ever more effectively with premise-based UC product offerings and getting more traction in the market, especially with small businesses.”

“And looking to the broader cloud UC market we still see vibrant demand for standalone UC SaaS offerings, where revenues continue to grow at double-digit rates,” he added.

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