Synergy: Solid CPaaS Outlook 40 Percent YOY Growth

Communications platform as a service (CPaaS), is growing in strength, according to a recent Synergy Research Group Report. Researchers there said CPaaS finds success anywhere that embraces the technology because it appeals to businesses that have not fully migrated to the cloud.

The report also suggests, the CPaaS industry is experiencing exponential gains, presenting figures on revenue from the first three quarters of 2019, Synergy added, CPaaS revenue surpassed the record for all of 2018 in these quarters alone.

Jeremy Duke, Synergy Research Group’s Founder and Chief Analyst, said CPaaS users gain the most value from the technology’s ability to add new functions with relative ease.

“Ease of platform customization and the flexibility of its pay-as-you-go service model are other ways CPaaS users gain value from CPaaS”

CPaaS is Doing Well, in General

Synergy Research Group pointed out: “While Twilio is something of a poster child for CPaaS, and is the market leader in all major regions, most of the leading vendors also enjoy strong revenue growth”

Vonage, Bandwidth, MessageBird, Sinch, and Voxbone trail Twilio, according to Synergy data.

Researchers there accredit Twilio’s pioneer status as to why it remains the CPaaS market leader, dominating 32 percent of its global share in the third quarter of 2019. Across all UC and collaboration market segments, CPaaS has the highest growth rate, Synergy reported.

And if we examine between the years of 2015 and 2019 in CPaaS, it grew from $400 million to $8.1 billion, according to Statista. With an outlook on 2022, IDC predicts $10.9 billion in sales. The potential for high-profit margins doesn’t discount the possibility of disruptors, but nothing CPaaS cannot withstand. For as far as the eye can see, there’s a clear forecast for success in CPaaS for years to come.

API’s Role in CPaaS Success

As CPaaS works its way to maturity, it will ultimately result in a more refined version of itself. What APIs will enable in the near-to-long-term future, according to Irwin Lazar, Vice President, Service Director, Nemertes, is the creation of “Voice, video, and messaging APIs that let customers build communications into their native apps.”

APIs do play a key role in turning CPaaS doubters into believers if you ask me. The flexibility and agility APIs extend those who buy into them are why they’ll come to realize, APIs are one of the biggest benefits of CPaaS. To demonstrate just how flexible APIs are, they’ve been used to add and manage complex IVR requirements in contact center environments.

They’re also been used to let banks send sensitive data over secure servers. If you design and implement an effective business communications strategy, you can pretty much imagine the kind of system you want and build it with the use of APIs. Most companies are in agreeance about APIs and the value they add, with 85 percent of the world’s highest-performing companies stating APIs are fundamental to their growth, according to a report by Apigee.

In ‘The State of APIs Report,’ companies like Stripe, Foursquare, and Ticketmaster all said APIs were vital for their long-term prosperity.