8 Predictions For UCaaS In 2016

By Alan Rihm, CEO, CoreDial

In 2015, Unified Communications-as-a-Service (UCaaS) and cloud communications went mainstream as more organizations recognized that these solutions can help streamline business processes and boost productivity; all at a lower cost than legacy communication systems. This year at CoreDial, we have seen our partners and their customers reap the true benefits of UCaaS, including lower total cost of ownership, greater scalability, and better collaboration among employees. With 2015 coming to a close, we anticipate this growth to remain strong in the coming year. In fact, forecasts suggest the UCaaS market to grow from $15.12 billion in 2015 to $24.88 billion by 2020. We believe the trend will continue throughout the New Year, with even more companies exploring new ways to leverage UCaaS.

As we look forward to another big year, here are my eight predictions for UCaaS in 2016:

1. Platform As A Differentiator. The platform is increasingly important in differentiating a UCaaS offering. The best platforms will offer a friction-free experience that streamlines the process of going from “order-to-cash.” The faster and smoother that process, the more profitable and successful the channel partner will be.
2. UCaaS Goes Mobile. Mobility is ready to play a major role in UCaaS deployments in 2016. UCaaS is coming to mobile devices in the form of iOS and Android apps, and will simplify mobile in the same way it has simplified desktop communications. These apps will deliver UCaaS in a seamless mobile platform, and make it a truly ubiquitous service for enterprises and SMBs. This offers them convenience and control over the communication services employees are using in the office and beyond. 
3. Increased SMB Sophistication. Small and mid-sized businesses (SMB) have moved on from an early adopter mentality, and are recognizing the benefits that cloud communications can deliver. They increasingly know what they want in terms of a cloud communication solution, and are evaluating UCaaS providers with more sophisticated criteria. They want to see a platform that is simple to manage with a full suite of capabilities underpinned with guaranteed reliability. 
4. Global Growth In UCaaS. The U.S. is by far the biggest and most fertile market for UCaaS, accounting for around half of global revenues. UCaaS is accepted by U.S. enterprises as the best, most flexible and most secure way to manage corporate communications. In 2016, other parts of the world will follow the lead of the U.S. and start to quickly catch up in their adoption of UCaaS.
5. Competition Is Increasing. The success of the UCaaS model means that competition is increasing. More providers of cloud-based unified communications solutions are looking to take advantage of the many opportunities UCaaS presents. 2016 will see this competitiveness intensify. We expect this added competition to be good for innovation and for the growth of the overall market.
6. The Channel Gets It. The channel is seeing results from adopting UCaaS, and the feedback we’re receiving at CoreDial is indicating that the results are extremely positive. Managed services providers (MSPs), VARs, and IT solutions providers see UCaaS as a differentiator and driver for long-term profitability. The channel is winning new business and expanding its relationships with customers — which is being reflected on their balance sheets.
7. New Opportunities In Adjacent Services. Customers who have adopted UCaaS are looking to add adjacent services supplied by their UCaaS provider. UCaaS is often a customer’s first cloud deployment but won’t be their last. Channel partners have an opportunity to expand their relationship with customers and solve new challenges. These services might be cloud storage, utility computing, remote IT management, business applications or vertical specific solutions. Channel partners can be their customer’s guide on their cloud journey.
8. A Long Way From Saturation. There’s plenty of room to grow. The market for UCaaS is still developing and is a long way from saturation and maturity. This is what makes it an exciting opportunity for MSPs, VARs, and IT solutions providers. Better yet, there’s a very large addressable market.

The technology industry is never dull, and in 2016 the UCaaS market will certainly get even more interesting. We’ll see UCaaS hit that transition point between the slope of enlightenment and plateau of productivity on Gartner’s hype cycle. The opportunities in UCaaS are increasing, and I believe we are going to see the UCaaS market continue to grow. Channel partners will capture new revenue from high margin services and achieve even greater success.

Alan Rihm sets the strategic direction of CoreDial, working closely with the management team on all sales, marketing and operational issues. As founder and CEO of CoreDial he has been instrumental in establishing the company as a channel-focused cloud software and services provider, with more than 200 channel partners at the beginning of 2014. These channel partners leverage the company’s service delivery platform to white label high quality, feature rich cloud communications services like Hosted PBX, Hosted VoIP, SIP Trunking, Unified Communications, and all related products and services.