Press Releases

Traditional UC&C Solutions Headed for the Cloud, Lifting the Global Market

January 20, 2016

Wellesley, Mass., January 20, 2016 –The unified communication and collaboration (UC&C) solutions market should double in value over five years, thanks to new technologies and innovative solutions.  BCC Research  reveals in its new report that UC&C, traditionally an on-premise deployment, should shift to a cloud-based service through growing widespread adoption by small- and mid-market businesses.

BCC Research considers the UC&C market as an aggregation of components—hardware, software and services that directly bring unified communication to the end-user. Unified communication and collaboration solutions comprise a variety of previously disparate products brought together by the convergence of IP networks and open software platforms. UC&C includes solutions that integrate real–time enterprise communication services such as instant messaging (chat), presence, voice telephony with non-real-time communication services such as unified messaging (integrated voicemail, e–mail, SMS and fax).

The global market for UC&C solutions, which totaled $26.5 billion in 2015, should reach $62 billion in 2015, reflecting a five-year compound annual growth rate of 18.5%. On-premise deployment, the largest segment type, should grow from $18.2 billion in 2015 to $37.8 billion in 2020, with a five-year CAGR of 15.7%. Hybrid deployment, the fastest growing segment type with a five-year CAGR of 28%, totaled $1.8 billion in 2015 and should reach $6.2 billion in 2020.

UC&C has traditionally been an on-premise deployment. This model is expected to see a paradigm shift as cloud-based services, also called unified communication as a service (UCaaS), becomes widely adopted by small- and mid-market businesses. The market for UCaaS  should total nearly $18 billion by 2020, up from $6.5 billion in 2015, reflecting a five-year CAGR of 22.5%.

An aspect of the industry is the UC&C solution as a hosted or shared service in the cloud. Private and public cloud–based UC as a service (UCaaS) solutions are expected to fuel the next phase of growth,” says BCC Research analyst Nandita Bhotika. “The cost efficiencies and operational flexibility of these shared services are proving a potent model for market players. Although challenges in its adoption are still a concern, UCaaS is expected to give the UC&C market its needed boost.”

Unified Communication and Collaboration: Technologies and Global Markets (IFT125A) examines analyzes the markets by type, technology, and geography. Analyses of global market drivers and trends, with data from 2014, 2015, and projections of five-year CAGRs through 2020 are provided.

Editors and reporters who wish to speak with the analyst should contact Steven Cumming at steven.cumming@bccresearch.com.

Unified Communication and Collaboration: Technologies and Global Markets( IFT125A )
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