Hybrid Deployments are Leading the UCaaS Growth Spurt

RENO, NV, June 4, 2014

New Q1 data from Synergy Research Group show that while public cloud deployments still account for almost two thirds of UCaaS business suite subscribers, it is hybrid cloud deployments that are growing the fastest. Hybrid accounted for just 14% of total UCaaS subscribers at the end of Q1, but hybrid subscriber numbers had increased 46% over a twelve-month period.

In aggregate five operators account for over 50% of UCaaS service revenues, with 8x8 holding on to the lead with a 14% market share. It is followed by RingCentral, ShoreTel, Mitel and Vonage/Vocalocity. Other leading operators include iCore Networks, West IP, Jive Communications and Fonality. By subscriber count the same five operators lead the market, though the ranking is different.

“In common with developments seen in other enterprise cloud markets, hybrid deployments are relatively small but gaining a lot of traction with UCaaS customers”  said Synergy Research Group’s founder and Chief Analyst Jeremy Duke. "They combine the cost and flexibility benefits of public cloud with the control and security benefits of private cloud. UCaaS still has a long way to go in terms of penetrating the managed and hosted business voice market, and I fully expect hybrid to take an increasing share of the rapidly growing UCaaS market.”