Building A Valuable Business with Unified Communications as a Service (UCaaS)

The opportunity in Unified Communications as a Service (UCaaS) is not only for the largest telecommunications carriers. Interconnects, Managed Service Providers (MSPs), as well as local and regional carriers all have an opportunity to deliver UCaaS and capture new revenue streams just like their giant counterparts.

Gartner has plotted AT&T, Verizon, and Sprint on its Magic Quadrant for UCaaS providers, labelling them “Challengers” in the market. They are not leaders or dominant in delivering cloud-based unified communications to enterprises and there are plenty of ways local or regional Interconnects, MSPs, and Carriers can benefit from the growing demand for UCaaS.

shutterstock 213296977 resized 600

Market research firm MarketsandMarkets forecasts the UCaaS market to grow from $13.10 billion in 2014 to $23.34 billion in 2019. That is a Compound Annual Growth Rate (CAGR) of 12.2% over the next five years. This double-digit growth will be driven by enterprises of all sizes and types with no limits on what kinds of customers can benefit from unified communications.

This is good news for local and regional Interconnects, MSPs, and Carriers as they often have the advantage of strong customer relationships, service-oriented business cultures, and a consultative approach to sales. These traits are ideal for UCaaS where service, support, and agility are well-defined differentiators. The smaller players in the market can move quickly and take advantage of the flexibility of a hosted model.

UCaaS can be a differentiator and one that gives local or regional providers another way to use their strengths to compete. While the largest US carriers will fill their traditional role and deliver large-scale deployments, UCaaS offers service providers another space where they can offer an alternative. UCaaS is a tremendous business opportunity for Interconnects, MSPs, and Carriers and it plays directly to their strengths in the market.

shutterstock 187004963 resized 600

It is an ideal situation where they can move up the stack and offer margin-rich services to customers. Basic communications services may have been the gateway for customers but a new suite of integrated services that include voice, messaging, and collaboration tools can add new value to existing relationships. It allows Interconnects, MSPs, and Carriers to monetize their customer servicing areas quickly while increasing customer satisfaction and reducing churn.

The key that makes this possible is not simply reselling services provided by another service provider but adopting platforms that seamlessly integrate into their operations and give them the flexibility and scalability to grow. With the right platform partner, they can efficiently monetize their infrastructure and compete with a new model and new services.

all-in-one software & services solution