IDC, one of the world’s leading industry analyst, recently conducted a “MarketScape” report into the state of the Cloud Communications Platform as a Service environment. According to IDC, the CPaaS environment supports cloud-based hosting, and the management of application programming interfaces, or “APIs” for communication stack customisation.
APIs can be embedded into enterprise applications today, ranging all the way from web platforms and mobile apps, to business process applications. With CPaaS, developers can unlock the potential of APIs in various coding languages to design custom experiences in the cloud. The 2019 CPaaS MarketScape study allowed IDC to identify the leading providers in the industry that vary in scope and scale but have stood out as innovators in the segment. IDC considered the diversity of the portfolios for the companies assessed, the growth and size of the brand’s revenues, and the ability that they had to provide a platform for corporations, ISVs, and developers.
The aim of the IDC MarketScape study was to assess the ability that CPaaS platforms have to create rapidly scalable and customisable real-time communications services for users. For 2019, IDC has recognised Vonage and Twilio as the Leaders in the CPaaS marketplace.
The Growth of CPaaS
In the 2019 MarketScape report, IDC defines CPaaS solution vendors as providers that can facilitate real-time communications through a range of channels. The providers that IDC have addressed can give developers a range of tools and programming solutions, including access to local country markets, and global network gateways. These networks are reliable, scalable, and easy to use for a wide range of developers.
In the last 18 months, IDC has seen the segment for CPaaS exploding with a wide variety of new scale and creativity. Newer innovations in the space include APIs that support omnichannel engagement, integrated call centre offerings, and menu-driven low-code app building. The services facilitated by cloud communications platforms include everything from Voice and SMS Apis, to videos, email, security, omnichannel, and menu-driven development tools.
When assessing the leaders in the CPaaS environment, IDC examined all platforms with the ability to offer at least a messaging and voice API capability to developers, ISVs, and enterprises. Additionally, providers were only included if they had at least 1 billion voice minutes or calls via APIs in 2018. The companies mentioned in the MarketScape assessment included:
Leaders:
- Twilio
- Vonage
- Bandwidth
- MessageBird
Major Players:
- IMimobile
- Sinch
- Plivo
Contenders:
- Avaya
Leaders in the CPaaS Realm: Vonage and Twilio
Twilio and Vonage are by far the biggest contenders in the CPaaS environment today. Twilio is the most significant company in the API environment for modern organisations, offering an entire ecosystem of robust API solutions for developers and enterprises that want to build their own custom approaches to the communication and collaboration stack.
However, while Twilio soars ahead in the CPaaS realm, Vonage is quickly catching up with its Nexmo platform. Vonage, positioned as a leader in the IDC MarketScape for 2019, has been a major CPaaS contender since 2010. Since it’s launch into the industry, Vonage has rapidly built a fantastic reputation across the developer community. Recently, Vonage also added a contact centre toolkit to its all-in-one offering for communications on the cloud. What’s more, in 2018, Vonage acquired the TokBox solution for programmable video APIs.
IDC believes that Vonage is quickly catching up to Twilio’s position at the head of the CPaaS industry with it’s One Vonage Communication platform. Vonage has a unique ability to offer scalable platforms for developers and companies that want to leverage everything from CPaaS to UCaaS and CCaaS in the same stack, and from the same support framework. Vonage’s extensive partnership program also allows the company to support an extensive network of partners.
However, Vonage still has a way to go when it comes to expanding the reach of its API offerings. For instance, IDC notes that the company should be reaching into Latin America and Africa to help strengthen the company’s strong geographic presence in other parts of the world. What’s more, another major challenge for Vonage could be the integration of different brands under the One Voice name. The diverse platform is a strength for the long-term, but it’s also something that needs time to gain traction.
IDC’s Advice for Tech Buyers
IDC recommends that tech buyers interested in exploring the benefits of CPaaS for themselves should focus on things like:
- Ecosystem integration: The ability to integrate with other crucial tools in your environment
- Platform capabilities: Low code drag-and-drop application flow-building solutions
- Offering portfolios: Scalable platforms that support millions of API transactions
- Network infrastructure: A reliable platform with substantial relationships with an array of providers
