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Hybrid Cloud Deployments is the Major Factor for UCaaS Growth, says Synergy Research

June 17, 2014

According to the New Q1 data from Synergy (News - Alert) Research Group, hybrid deployments are making way for UCaaS growth.

Though the hybrid cloud has scaled up to 14 percent of total UCaaS subscribers as of the end of the first quarter of 2014, the report from the Synergy Research indicates that the hybrid deployments increased 46 percent over the past year.

“In common with developments seen in other enterprise cloud markets, hybrid deployments are relatively small but gaining a lot of traction with UCaaS customers,” said Jeremy Duke, Synergy Research Group’s founder and Chief Analyst.

Duke pointed out that hybrid cloud combine the cost and flexibility benefits of public cloud with the control and security benefits of private cloud.

8x8 (News - Alert) has been leading with 14 percent market share in the UCaaS service revenues and five service providers including RingCentral, ShoreTel, Mitel and Vonage/Vocalocity (News - Alert), drove more than 50 percent of UCaaS service revenues. In addition, iCore Networks, West IP, Jive Communications and Fonality are making progress in the UCaaS market.

Officials at 8x8 said that the company’s total fourth-quarter fiscal 2014 revenue increased 29 percent year-over-year to $35.8 million. And most of 8x8's revenue was increased by channel and mid-market sales, which it said comprised a record 39 percent of new monthly recurring revenue sold in the quarter.

Duke further added, “UCaaS still has a long way to go in terms of penetrating the managed and hosted business voice market, and I fully expect hybrid to take an increasing share of the rapidly growing UCaaS market.”

Synergy has been on the forefront offering quarterly market tracking and segmentation data on IT and Cloud related markets, including vendor revenues by segment and by region. The company provides the market shares and forecasts using its exclusively designed online database tool, which enables easy access to complex data sets.


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