The global UCC market continues to evolve at a rapid pace. Migration to cloud-based subscription services is accelerating as organizations gain confidence, existing CPE assets near end of life, and current cloud services deployments expand to more sites, users and applications.
The gap between “as a service” offerings and other consumption models is increasingly wide. In 2018, revenues from the services segment again increased year-over-year, approaching two-thirds of total global UCC revenues. Services growth is generated at the expense of revenues from UCC endpoints, software and platforms, which are each declining in the mid-to-low single digits annually. Developers are pushing the technology to envelop to enhance their value propositions, further accelerate customer migration to next-generation products and services, and earn more wallet share. A vigorous focus on user experience, mobile-first solutions, enhanced management and next-generation capabilities leveraging artificial intelligence, machine learning, automation and rich-analytics are driving the development of tomorrow’s UCC industry.
This Outlook provides key data points on the industry's above movement as noted above. The intent is to provide validation and guidance for enterprise decision makers, providers and investors alike.
There is little doubt that cloud services are the future for the majority of workloads and use cases however, competitive hybrid offers are required to reach all market tiers and industry segments. Providers must acknowledge customer requirements to evolve at their own pace, preserve and utilize existing assets, mitigate potential disruption, and adhere to individual deployment and consumption preferences for mission-critical and data-sensitive applications. As such, breadth of portfolio and effective pricing are keys to overall competitiveness, yet effective implementation, reliability, quality, security and support will ultimately win the day.
M&A will progress as providers seek to strengthen their portfolios, expertise and footprints. Customers will benefit as well, from streamlined vendor management, more holistic solutions, stronger roadmaps, and more clear migration paths that are needed for their digital transformation initiatives.
Simultaneously, the industry is susceptible to the activities and influences of technology industry giants, which may already participate in the UCC space, as well as those that may enter in the near or mid-terms.
In the next few years, we will see a continuation of the above trends. All the while various segments will become increasingly intertwined. Similar to the convergence of web and video conferencing, unified communications as a services (UCaaS), contact center as a service (CCaaS), communications platforms as a service (CPaaS), and rich media collaboration (e.g., multi-media conferencing, team messaging, etc.) will become more tightly integrated within the UCC stack. The net-effect will be more frictionless sales, implementation, adoption and utilization that have been the general goal for UCC from its outset.
1. Executive Summary
- 2018 Global UCC Industry - Actuals vs Forecast
- Telephony Services Market Key Findings
- Premises-based Communications Platforms Market Key Findings
- Communications Endpoints Market Key Findings
- Audio Conferencing Endpoints Market Key Findings
- Professional Headset Market Key Findings
- Connectivity Device Market Key Findings
- Messaging Market Key Findings
- Conferencing Services Market Key Findings
- Web Conferencing Platforms Market Key Findings
- Video Conferencing Product Market Key Findings
- CEO’s Perspective
2. Research Scope and Segmentation
- Research Scope
- Research Methodology
- Research Objectives
- UCC Industry Definitions and Segmentation
- Telephony and Collaboration Market Segmentation
- Messaging Market Segmentation
- Social Business and Conferencing Market Segmentation
- Communications Endpoints Market Segmentation
- Conferencing Endpoints Market Segmentation
- Communications Platforms Market Segmentation
- Connectivity and Services Market Segmentation
3. Global UCC Sales Trends
- Global UCC Industry Sales - 2018 and 2020
- Communications Endpoints Revenue by Type
- Communications Software and Platforms Revenue by Type
- Communications Services Revenue by Type
4. Regional UCC Sales Trends
- IT Investment Plans Over the Next Two Years
- Near-term UCC Investment Plans by Region
- Top Challenges for IT Departments by Region
- Top IT Investment Drivers by Region
- Digital Transformation Readiness by Region
- UCC Importance to Digital Transformation by Region
- UCC Integration with Business Applications by Region
5. Trends to Watch - 2018 Global UCC Industry
- Future Outlook - Services
- Future Outlook - Endpoints
- Future Outlook - Software and Platforms
- Recommendations - 2019 UCC Industry, Global
- UCC Future Outlook and Key Conclusions
- Legal Disclaimer
- Abbreviations and Acronyms Used
- Additional Sources of Information on UCC
- Learn More - Next Steps
- Market Engineering Methodology
- List of Exhibits