Market revenues for VoIP and session initiation protocol (SIP) services are expected to grow at a compound annual rate of more than 20% through 2020, according to a new forecast from Frost & Sullivan.
While that growth continues, new enterprise users will adopt VoIP and SIP at an annual growth rate of more than 18%, the analysis called Growth Opportunities in the VoIP Access and SIP Trunking Services Market concludes.
Michael Brandenburg, analyst of digital transformation for Frost & Sullivan, says businesses increasingly are seeing value in voice-over-internet protocol and related services as a way to add new capabilities without replacing their existing IT infrastructure.
The emerging Communications Platform as a Service, or CPaaS, space as well as disruptive pricing, packaging, feature/functionality and business models within the VoIP market all are accelerating while increasing competition among service providers.
“There are significant opportunities for providers of IP-based voice access to build on current successes and branch out into the emerging CPaaS arena,” Brandenburg said. “CPaaS offerings are emerging as an on-demand alternative to traditional communications services, prompting companies to build, buy or partner to enable API-level integration with voice services.”
Although adoption to date has been driven primarily by startups and software developers, larger enterprises also want to communicate with customers through multiple channels, including voice, video and text messaging. VoIP – and, specifically, CPaaS — make that possible.
“This is the right time for service providers to penetrate the emerging CPaaS arena through mergers and acquisitions that add breadth and depth to the existing portfolio and customer base,” he said.
He noted that service provider Vonage, for example, reported in its fourth-quarter earnings call that revenue growth going forward will be driven by CPaaS and UCaaS, or Unified Communications as a Service. Combined revenues in those two areas last quarter were up 43% to $111 million.
• VoIP and related services are converging to offer new capabilities within the enterprise.
• Service providers are jockeying for position as IP communication expands.
• Larger enterprises are beginning to recognize the value of unified communications.
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Source: SANS ISC SecNewsFeed @ May 4, 2017 at 11:18AM