Cloud-based Unified Communications surpass traditional phone systems
Unified Communications in the cloud has, and continuous to be such a success that it is having an impact on the traditional in-house telephony business.
It really is no wonder why, cloud-based telecommunication systems are cost efficient, flexible and have increased functionality. Along with the increase in popularity of remote working, being able to “dial into the office” from anywhere in the world is a major benefit.
As this article indicates, businesses are holding off on upgrading or purchasing traditional phone systems due to the impact of cloud based services. The main take away from this article being:
- A decline in on-premises private branch exchange (PBX) licenses led the global market to decrease 8% in 2017 from 2016, to $5.7bn.
- Total PBX lines were down 9% year over year in 2017. And this was across the board, every segment took a hit, says a researcher.
- Demand for unified communications has increased with revenue up 5% from the prior year.
- Hybrid IP PBXs represented 64% of all lines shipped in 2017.
“The on-premises enterprise telephony market continues to be tough,” said Diane Myers, senior research director for VoIP, UC and IMS at IHS Markit.
“Many businesses are holding off on upgrades and new purchases, and the move to cloud services is having an impact.
“Underscoring the declines are not just slowing business purchases, but competitive pricing and the move to recurring expense models, which has resulted in market swings.”
On the vendor front, Microsoft led in the Unified Communication global revenue market share with 67% in 2017, trailed by Cisco and Avaya.
For IP phones (IP deskphones and softphones), Cisco was the frontrunner with 35% of units shipped in 2017; Avaya was second with 14.
With the benefits of the cloud becoming ever more apparent, now is really the time for a business to look at this form of telecommunication to stay ahead of the competition.
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