We know the direction of the hosted PBX market, we see it every day in our line of work. But, seeing the actual global estimates for UCaaS adoption and spending this year really exhibits how big this tech really is. The as-a-service model is where we’re all headed, and 2018 is showing us just how quickly we’re getting there.
“At 54 million lines/seats, the worldwide addressable market for hosted PBX in 2018 is conservatively valued at $20 billion by the Eastern Management Group, as detailed in the report, “Worldwide Hosted PBX Market 2017-2022.” But the revenue opportunity is even bigger yet when taking add-on UC applications like contact center and video into account, as well as factoring in pull-through services, such as systems integration and managed LAN.
In a four-year study, the Eastern Management Group examined hosted PBX and its place in the larger world of PBXs. That broader market, which includes traditional PBXs, IP PBXs, hosted and hybrid cloud systems, and server virtualization, feeds the Total Addressable Market (TAM) for hosted PBX. Eastern Management Group data collected this year from 3,500 IT managers around the world shows that enterprise, mid-market, and SMB shoppers all evaluate hosted alternatives when acquiring any business phone system. The type of system being replaced, whether from Avaya, Alcatel-Lucent Enterprise, Cisco, or any other vendor, is immaterial to buyers; they all explore hosted PBX options.
The large TAM for hosted PBX will expand the sources of capital and ratchet up the total amount invested in the hosted PBX industry. We’re already beginning to see this happen. We expect the money to go to these 10 areas:
New money is going to attract more businesses with better technology. Cash will enable existing vendors that have struggled with a basket of customers averaging 10 to 15 seats to win over the mid-market and enterprise segments. More network operations centers deployed domestically and internationally will improve service uptime and support. Operations expansion will put resources nearer the customer, not oceans away. Investment dollars will buy self-serve software development, particularly at tier 1, 2, and 3 service providers.”
Implementing a UCaaS solution isn’t easy. Each business will have its own specific requirements and needs that must be considered. To be successful, enterprises need a trusted partner that can help them assess their current environment and future needs, develop and implement a plan involving multiple communications vendors, and support them after install. Corporate Technologies can be that partner. Contact us today to get started on the path towards productivity and growth.