This is an in-depth analysis of the top 21 growth and innovation leaders in the European unified communications as a service (UCaaS) market. Competition is intensifying as the market matures. As a result, it is exceedingly important for participants to accelerate innovation and develop sustainable growth strategies. This Frost Radar provides perspectives on market trends and rates the included UCaaS providers based on a set of 10 growth and innovation criteria comprised of qualitative and quantitative factors. The primary quantitative metric employed is hosted business Internet Protocol (IP) telephony/cloud private branch exchange (PBX) or UCaaS seats consumed by end-user organizations as monthly subscription services. The size of providers' European UCaaS installed user bases determined the providers to include in this evaluation; however, certain providers with comparatively large installed bases were not evaluated due to limited available information about their growth and innovation strategies.
Call control platform innovation continues, yet not with tremendous forward leaps in this maturing market. Rather, much of the development focus has shifted to the UC applications that integrate with business call control, such as meetings, messaging, mobility and, increasingly, contact centre. Developments have an emphasis on artificial intelligence (AI) and automation. Examples include automated recording and archiving; AI-enabled captions, summaries and transcriptions of calls and conferences; contextual recommendations on calls; and mobility with single caller ID. Business process and vertical solution integration with UCaaS, such as customer relationship management (CRM), enterprise resource planning, project management, electronic medical records, and financial services software, are likewise enabling providers to increase average revenue per user and enhance their value propositions.
Contact centre and customer experience (CX) management solutions also are a focus area for UCaaS providers. Disrupted customer experiences during the pandemic and shifting customer preferences to interact via a range of communications modalities (voice, chat, SMS, fax, email, and social media) raised awareness among end-user organisations to keep pace with rapidly advancing technology and the overall need to improve their CX capabilities. Cloud services help end-user organisations to quickly expand their capabilities and remain current with regular updates delivered from contact centre as a service (CCaaS) platforms. All of this is compelling cloud communications providers to expand their CX offerings. Today and going forward, robust CCaaS offers will be a crucial part of cloud communications suites and a competitive advantage for technology developers and service providers with strong capabilities. As the market continues to mature and competition further intensifies, growth and innovation become more challenging to achieve organically. Mergers and acquisitions and strategic partnership activities have been steady and are expected to remain common paths that providers take to boost innovation, enhance their portfolio and geographic footprint, and accelerate growth.
Unified Communications as a Service in Europe 2023
- Unified Communications as a Service in Europe
Frost Radar™: Benchmarking Future Growth Potential 2 Major Indices, 10 Analytical Ingredients, 1 Platform
Growth Index
Growth Index (GI) is a measure of a company’s growth performance and track record, along with its ability to develop and execute a fully aligned growth strategy and vision; a robust growth pipeline system; and effective market, competitor, and end-user focused sales and marketing strategies.
- Market Share (previous 3 years)
This is a comparison of a company’s market share relative to its competitors in a given market space for the previous 3 years. - Revenue Growth (previous 3 years)
This is a look at a company’s revenue growth rate for the previous 3 years in the market/industry/category that forms the context for the given Frost Radar™. - Growth Pipeline
This is an evaluation of the strength and leverage of a company’s growth pipeline system to continuously capture, analyze, and prioritize its universe of growth opportunities. - Vision and Strategy
This is an assessment of how well a company’s growth strategy is aligned with its vision. Are the investments that a company is making in new products and markets consistent with the stated vision? - Sales and Marketing
This is a measure of the effectiveness of a company’s sales and marketing efforts in helping it drive demand and achieve its growth objectives.
Innovation Index
Innovation Index (II) is a measure of a company’s ability to develop products/ services/ solutions (with a clear understanding of disruptive Mega Trends) that are globally applicable, are able to evolve and expand to serve multiple markets and are aligned to customers’ changing needs.
- INNOVATION SCALABILITY
This determines whether an organization’s innovations are globally scalable and applicable in both developing and mature markets, and also in adjacent and non-adjacent industry verticals. - RESEARCH AND DEVELOPMENT
This is a measure of the efficacy of a company’s R&D strategy, as determined by the size of its R&D investment and how it feeds the innovation pipeline. - PRODUCT PORTFOLIO
This is a measure of a company’s product portfolio, focusing on the relative contribution of new products to its annual revenue. - MEGATRENDS LEVERAGE
This is an assessment of a company’s proactive leverage of evolving, long-term opportunities and new business models, as the foundation of its innovation pipeline. - CUSTOMER ALIGNMENT
This evaluates the applicability of a company’s products/services/solutions to current and potential customers, as well as how its innovation strategy is influenced by evolving customer needs.
Significance of Being on the Frost Radar™
Companies plotted on the Frost RadarTM are the leaders in the industry for growth, innovation, or both. They are instrumental in advancing the industry into the future.
- GROWTH POTENTIAL
Your organization has significant future growth potential, which makes it a Company to Action. - BEST PRACTICES
Your organization is well positioned to shape Growth Pipeline™ best practices in your industry. - COMPETITIVE INTENSITY
Your organization is one of the key drivers of competitive intensity in the growth environment. - CUSTOMER VALUE
Your organization has demonstrated the ability to significantly enhance its customer value proposition. - PARTNER POTENTIAL
Your organization is top of mind for customers, investors, value chain partners, and future talent as a significant value provider.
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A tailored session with you where we identify the:- Strategic Imperatives
- Growth Opportunities
- Best Practices
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Impacting your company's future growth potential.
| Deliverable Type | Frost Radar |
|---|---|
| Author | Rob Arnold |
| Industries | Telecom |
| No Index | No |
| Is Prebook | No |
| Keyword 1 | Ucaas Market Analysis |
| Keyword 2 | Ucaas Trends In Europe |
| Keyword 3 | Ucaas Growth Opportunities |
| Podcast | No |
| WIP Number | MGE0-01-00-00-00 |
Frost Radar™: Unified Communications as a Service in Europe, 2023
A Benchmarking System to Spark Companies to Action - Innovation that Fuels New Deal Flow and Growth Pipelines
09-Nov-2023
Europe
Frost Radar