Synergy Research released the results of its latest Q1 data on the cloud business communications market. According to its findings the sector is growing at an annualized rate of 23% thanks to the adoption of unified communications as a service (UCaaS) which is driving the market.
The figures were revealed as part of Synergy Research’s Q1 data on the growing cloud business communications market.
The total cloud communications market is generating in excess of $2 billion per year, with retail UCaaS services accounting for well over 70% of the total market share. Based on quarterly figures RingCentral is the market leader, followed by 8x8, Mitel and ShoreTel.
“Synergy’s report validates our leadership in the market and shows that we are breaking away from the competition in both revenue and installed base,” said Vlad Shmunis, founder, chairman and CEO of RingCentral. “We’re honoured to be recognised as the largest and fastest growing UCaaS provider. Our success stems from our relentless focus on innovation and our differentiated mobile-first, global, open platform collaborative communications solutions.”
$1.7 billion a year is generated through UCaaS retail and wholesale business suite services. Of the three sub-segments, Public UCaaS is the largest and is also growing fastest. Overall the cloud business communications market is concentrated in the US, which accounted for 80% of total revenues in the first quarter of the year.
Jeremy Duke, Synergy Research’s founder and chief analyst said: “UCaaS continues to be a force for change within the business communications market. Major barriers to cloud adoption are now almost a thing of the past and consequently we are seeing continued erosion of on-premises PBX-based systems. Clearly these trends will continue over the next few years."
