These days, companies need more flexibility in their communication stack.
A one-size-fits-all solution just doesn’t work in a world where there are so many different ways for people to connect. Communication Platforms as a Service, or CPaaS solutions transform the comms environment with flexible and scalable tools.
Although you can connect multiple communication services with CPaaS, it’s not the same as having a UCaaS strategy. With CPaaS, you have the option to embed new real-time communication tools, analytics, and other essentials into your existing technology.
CPaaS is the ultimate way for companies to get a bespoke technology environment, tailored to them. According to IDC, the market value for CPaaS by 2024 will be $17.7 billion.
Building a Business Case for CPaaS
The landscape for CPaaS is seeing explosive growth lately.
As legacy communication systems reach end of life, enterprise groups and companies are looking for flexible ways to take their tech stack to the next level. CPaaS offers a convenient and cost-effective way for companies to upgrade their tech and adopt the benefits of cloud.
CPaaS offers a door into various kinds of digital transformation. Businesses can use APIs and SDKs to embed virtual assistants and artificial intelligence into their communications.
As team collaboration tools emerge at the heart of the business landscape, some organisations are turning to CPaaS as a way of adding cloud PBX and business phone solutions to chat apps.
The more you know about the facts and figures around CPaaS, the easier it will be to convince the rest of your team that it’s time to invest.
Top CPaaS 10 Facts You Need to Know
For many companies CPaaS is a natural next step forward from UCaaS. With CPaaS, you can access all of the combined communication tools that today’s business owners need. However, CPaaS also gives you the freedom to connect new tools to your existing technology.
If you’re trying to convince your IT team or communication experts to upgrade to a CPaaS solution, the following facts may help:
- CPaaS demand is growing: In 2016 the CPaaS market was already worth $2 billion. As we head towards 2022, IDC predicts that this value will increase to $10.9 billion. Source: IDC
- Messaging and voice are big factors: The global voice and text messaging markets are some of the biggest areas for CPaaS stacks. By next year (2021), these two parts of CPaaS will grow to a value of $8.2 billion. Source: IDC.
- Connected devices are driving CPaaS opportunities: Many companies are now using CPaaS to strengthen their business with IoT and connected devices. There are set to be more than 75 billion connected devices by 2025. Source: Wainhouse Research
- People are increasing CPaaS investment: The same Frost and Sullivan study found that 67% of people plan to increase their level of investment in CPaaS, or at least maintain their existing investment. Source: Frost and Sullivan.
- More types of vendor are selling CPaaS: A whitepaper between Global Newswire and Juniper research found that it’s not just native tech companies offering CPaaS anymore, but countless start-ups and UC companies too. Source: Global News wire.
- CPaaS solutions are innovative: A CPaaS solution might include everything from REST APIs, to developer services, sample code snippets, documentation, forums, and more. Some companies also have SDK kits. Source: Bandwidth CPaaS report.
- Companies are helping to accelerate app development: Around 70% of companies in the CPaaS landscape are focusing more on enabling partners and supporting faster app development for the new landscape. Source: Apigee.
- Right now, the programmable web has thousands of APIs: In its database, the programmable web – a database of APIs, has around 23,000 options to choose from. Source: Programmable Web.
- US companies want to spend more on APIs: Forrester tells us that US companies alone will spend around $3 billion on API management in the years ahead. Source: Forrester.
- The CPaaS market is expanding: Frost and Sullivan’s Frost Radar shows that more companies are experimenting with CPaaS solutions to unlock new benefits like an OpEx cost management strategy, instead of Capex expense. Source: Frost Index 2019
Top Statistics to Support your Business Case
In the early days of CPaaS, there were only a handful of companies exploring the industry.
As companies have continued to move away from one-size-fits-all UC solutions, the number of CPaaS providers have continued to grow. Some businesses offer complete CPaaS environments, while others allow developers to build a stack using modular components and APIs.
Through excellent scalability and flexibility, CPaaS gives companies the freedom to grow however they choose.
- APIs are a big part of the CPaaS experience: Around 85% of top-performing companies agree that using APIs is a strategic way to grow their companies. 70% of those companies are also investing in new API-based strategies. Source: Apigee.
- 81% of companies have already deployed CPaaS: In 2017, Frost and Sullivan surveyed 1,695 decision makers and found that 81% had already deployed some kind of CPaaS. Source: Frost and Sullivan.
- CPaaS gives companies a competitive edge: CPaaS is a convenient way for companies to unlock new tools and features without replacing the communication stack. Apigee says that successful companies have four times more APIs in their business than low performers. Source: Apigee.
- Enterprise spend is accelerating: Juniper Research and Global News Wire that CPaaS spend will quadruple by 2022. Source: Global News Wire
- The way we work is changing: A big driver of CPaaS is the changing world of work and business operations. According to ALE, around 85% of companies say that they’re connecting differently with processes, people, and things than they did five years ago. Source: ALE CPaaS at the heart of digital transformation.
- People aren’t adapting fast enough: Unfortunately, around 85% of people in ALE’s study also said that their organisations needed to improve the connections between things and people with updated technology. Source: ALE CPaaS at the heart of digital transformation.
- Your competitors are already transforming: CPaaS investment is a significant facet of digital transformation for many companies. 95% of companies say that they’ve already completed their transformation journey, while 94% say they’re still in the process. Source: ALE CPaaS at the heart of digital transformation.
- People are looking for new ways to transform: 71% of companies say that they’ll deploy more digital engagement tools in the next few years. Source: ALE CPaaS at the heart of digital transformation.
- Working directly with a CPaaS provider can be valuable: Bandwidth found that working directly with a pure-play CPaaS provider can save companies anywhere between 30% and 60% of their investment. Source: Bandwidth CPaaS report.
- By 2023, the value of CPaaS will skyrocket: The value of the CPaaS market could reach around $17.2 billion by 2023, according to Statista. Source: Statista.