Following the pandemic, UC became less of a fringe use case and more of a solution that millions of workers use as part of their daily workflow.
What started as a necessity to remain connected in lockdown, continued to support the hybrid workforce that many companies are enacting.
This initial switch to cloud-based solutions put legacy telecom UC providers on the back foot, as on-premises effectively became useless during lockdown.
Although lockdown ended, what remained was hybrid and remote work.
Equally, UC platforms are now offering enhanced capabilities like AI summaries for meetings as opposed to just providing the platform for the meeting, meaning they are more than just a substitute.
However, it’s not all roses. Some hurdles are present in the current UC setup. For instance, business telephony is not integrated by default into out-of-the-box into many UC platforms.
It is here where, Steve Flavell, Co-CEO of LoopUp, sees an opportunity for telecoms to re-enter the market in a meaningful way, by ushering in what he calls “truly unified communications”.
The Rise of Cloud Communications
The impact of the cloud transition on the telecom industry has been profound.
“By 2034, it is estimated that more than 75% of businesses will use cloud-based rather than on-premises telephony services, with the market expected to grow from $23.2 billion in 2024 to $42.7 billion by 2032,” Flavell explained.
Many telecom companies initially responded by developing standalone cloud telephony offerings. However, Flavell argues this approach is rapidly becoming obsolete.
“This standalone segment is now in decline, rapidly being replaced by cloud telephony services that integrate into UC platforms.”
However, according to Flavell, significant gaps remain in this current setup within the UC ecosystem.
“Business telephony is not integrated by default into out-of-the-box into many UC platforms,” he noted.
This is where Flavell thinks that telecoms can reassert their position in the market following the fallout from the cloud transition.
The Challenge of Global Unification
When discussing unified communications, there’s often confusion about what true unification entails.
Flavell clarifies that truly unified communications should involve “all core communications tools – e.g., video, meetings, chat – to be available within a single UI or application.”
Beyond mere availability, these tools should be consistent for all users across an enterprise’s global operations.
“The ideal would be for distinct UC platforms to interface seamlessly with one another,” Flavell explains.
However, achieving this ideal remains challenging, particularly for integrating calling services for multinational enterprises.
Multinational enterprises face multiple barriers to achieving true unification, as the jurisdictions they are in may have varying technological infrastructures, fragmented landscape of geographically-defined telecom providers, and complex country-specific telecom regulations.
These factors combine to create what Flavell describes as a “Herculean task in orchestrating a seamless, unified communications experience that spans their entire global footprint.”
Integration Over Competition
As the traditional telecom landscape transforms, providers must adapt their strategies to remain relevant.
For telecom providers to now survive, partnerships with UC platforms have become essential for survival.
“The biggest innovation for telecom providers in a market increasingly dominated by UC platforms isn’t so much differentiation as it is integration,” Flavell explained.
Microsoft’s Operator Connect program now has 107 telecommunications service provider partners, exemplifying this trend.
Telecoms should use this integration to give a one-stop-shop for all a company’s calling needs through their service.
By doing this, they can link this truly unified communications chain through its integration with Teams and the same coverage it can offer multinational enterprises.
“For multinational enterprises, the benefits are clear: simplified operations, increased efficiency, and cost savings through a single global vendor, one global contract, a unified global tariff, a centralized global support team, and, most critically, a single global software management portal,” Flavell explained.
Equally, this meets the need customers have for the removal of unnecessary silos.
“For the first time, multinational enterprises are able to manage their global phone number estates and user provisioning in one place, gaining economies of scale, enhanced visibility, and comprehensive analytics on global usage,” Flavell explained.
Evolving to the New Ecosphere
The telecommunications industry is at a pivotal crossroads, with traditional service models being fundamentally reshaped by cloud-based unified communications platforms.
Yet, looking toward the future, telecom providers have an opportunity to leverage their core strengths in new ways.
Rather than competing directly with UC platforms, they can position themselves as essential integration partners that bridge critical gaps in the UC ecosystem, particularly around global telephony services.
“The efficiencies and cost savings of removing multiple disparate regional vendors are too significant to ignore,” Flavell said.
“Along with this trend, a new class of multinational service providers will emerge.”
This approach not only meets enterprise needs for efficiency but also addresses the growing demand for eliminating technological silos.
For telecom providers willing to embrace this new role as integration specialists rather than standalone service providers, they can not only ensure their continued relevance in an increasingly cloud-first communications landscape but help to deliver a more unified experience that enterprises increasingly demand
