BroadSoft Survey Highlights Market Shift to Hosted UC
January 13, 2016
BroadSoft (News - Alert), a developer of cloud-based unified communications (UC) software, completed a survey of 146 global industry leaders and service providers at a recent conference and found that those professionals expect hosted UC to expand substantially in the years to come.
At its own BroadSoft Connections conference that took place late last year, surveyors attempted to gather prevailing opinions about how the communications market will fare throughout the rest of the decade. Survey respondents, those professionals at the event, indicated that the market penetration for new hosted UC lines shipped could increase by as much as six times above its current state. This would push it toward 41 percent of the entire UC market – with the large enterprise segment growing by a factor of three, the small business segment growing by a factor of five, and the midmarket segment growing by a factor of 18.
Taher Behbehani, the chief marketing officer at BroadSoft, commented that this change will ride on the promise of ease of use and lower cost that UC can provide.
“Enterprise UCaaS is proving disruptive due to its superior value proposition – reduced complexity, lower total cost of ownership, and greater productivity and mobility for the increasingly millennial and distributed workforce,” Behbehani said.
He further noted that the industry can see this potential, a vision which is reflected in respondents’ answers in the aforementioned survey. A whopping 92 percent of those individuals said they preferred to use hosted UC and cloud-based private branch exchange systems. Their counterparts, only eight percent of the whole, said they prefer premise-based software.
Therefore, it appears that any carryover in premise-based product usage from year to year can only be attributed to a handful of factors. First, the small holdout – the eight percent – of individuals who prefer on-premise software may continue their use until it is no longer feasible to do so. Otherwise, the only barrier to cloud-based product adoption will be the collection of cost, patience, and time. Many companies may want to migrate to the cloud, but they may not have the funds or may feel that a switch to a hosted service will slow down current production too much to be worth the move.
The industry, including software providers such as BroadSoft, will need to convince companies that a switch can be simple, fast, and worth any time it would take to make the switch; they will also need to make it cost-effective. After that, the only non-converts will be those companies that stick to their guns and ride out the decade with on-premise products in tow.
Edited by Peter Bernstein