Dialogic Blog

Unified Communications as a Service (UCaaS) – A Sweet Spot for Network Operators

by Elhum Vahdat

Jun 24, 2016 6:00:00 PM

Unified Communications as a Service (UCaaS) – A Sweet Spot for Network Operators

SaaS, IaaS, PaaS, NaaS, MaaS, UCaaS are all examples of XaaS.  According to TechTarget, XaaS is a collective term said to stand for “anything as a service.”  The acronym refers to an increasing number of services that are delivered over the Internet, on-demand, and on a subscription basis. For the readers of this blog, especially network operators, UcaaS – Unified Communications as a Service – should be the acronym of interest, especially since it is forecasted to be a $37.85 billion dollar market by 2022 according to Transparency Market Research.

No need to dwell on the well-known fact that network operators are losing ground to services like OTT.  Let’s focus on the positive and point out that network operators are in an ideal position to offer UcaaS because of their infrastructure – Hosted PBX and SIP Trucking to their business customers, and basic/advanced Class 5 services to their residential customers.  Not to mention more revenue-generating services such as hosted contact centers, network auto attendant, corporate ACD, outbound SMS, and calling, WebRTC video conferencing, and call interception, just to name a few.

An old article I recently re-read covered a lot of the benefits of UcaaS succinctly. According to the article, UcaaS offers flexibility and expandability that small and medium-sized business could not otherwise afford, allowing for the addition of devices, nodes, or coverage on demand. The network capacity and feature set can be changed from day to day if necessary so that functionality keeps pace with demand and resources are not wasted. There is no risk of the system becoming obsolete and requiring periodic major upgrades or replacement. 

Let’s not forget a single bill that consolidates telecoms services.

Off-loading communications needs from on-premise to the cloud is a big step for any enterprise, so once onboard, network operators have a captive audience which must continuously be offered new services.  This in turn directly affects ARPU positively.

What makes UcaaS such a great business proposition for Network Operators is that the infrastructure is already in place.  Mostly what is needed now are the applications.  Once again… network operators are ideally positioned to advantage of this rapidly growing UcaaS trend with their existing infrastructure which most OTT players are unable to do.

As the US President Theodore Roosevelt said, “Do what you can, with what you have, where you are.”

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Topics: Communications Application Development