OTT or Carrier-Bundled: Which UCaaS Option Is Best for You?

Organizations considering a cloud-based communications solution have a variety of choices, and this paper provides guidance on evaluating different options for unified communications as a service (UCaaS). The global UCaaS market was valued at $21.7 billion in 2024 and is projected to reach $26.5 billion by 2029. Despite this growth, almost half of the world's telephony seats remain on customer-owned platforms, representing a significant opportunity for future migration.

UCaaS is defined as a multi-tenant, cloud-based suite of communication and collaboration applications, with calling capabilities to the public switched telephone network (PSTN) as a minimum requirement. Top market leaders in terms of UCaaS seats include Microsoft, Cisco, Zoom, and RingCentral. Companies are increasingly adopting UCaaS due to several key benefits:

• Cost Savings: UCaaS reduces the need for upfront investments in hardware and perpetual licenses, as the provider manages the infrastructure.
• Flexibility: It allows businesses to easily scale seats up or down and deploy them anywhere, without the need for a local server.
• Faster Feature Rollout: Providers can quickly add new features, including advanced AI capabilities, giving customers immediate access to new technologies.

The paper outlines two primary UCaaS solution alternatives: over-the-top (OTT) and carrier-bundled solutions. OTT solutions, offered by companies like Zoom, Microsoft, and RingCentral, are typically feature-rich and flexible, with broad geographic reach and support for third-party PSTN connectivity. They are ideal for organizations prioritizing extensive features, rapid updates, and the ability to customize.

'Carrier-bundled solutions', offered by traditional telecommunications companies, bundle UCaaS with other network services like WAN, wireless, and security. They provide a single point of contact and a consolidated bill, simplifying management and support. These solutions are often better suited for smaller businesses or those that prioritize simplicity and a single provider for all their communication and network needs. While they offer convenience, their platforms may not have the same depth of features or frequent updates as OTT providers.

Choosing between an OTT or a carrier-bundled solution depends on an organization's specific needs. The best choice comes down to whether your business values the agility and feature-rich experience of a dedicated software company or the integrated management and support of a telecommunications carrier.